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Nu Skin Enterprises Inc (NYSE:NUS)
Beneish M-Score
-2.93 (As of Today)

The zones of discrimination for M-Score is as such:

An M-Score of less than -2.22 suggests that the company is not an accounting manipulator.
An M-Score of greater than -2.22 signals that the company is likely an accounting manipulator.

Nu Skin Enterprises Inc has a M-score of -2.93 suggests that the company is not a manipulator.

NUS' s Beneish M-Score Range Over the Past 10 Years
Min: -3.39   Max: -1.3
Current: -2.93

-3.39
-1.3

During the past 13 years, the highest Beneish M-Score of Nu Skin Enterprises Inc was -1.30. The lowest was -3.39. And the median was -2.61.


Definition

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Z-Score) or business trend (F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Nu Skin Enterprises Inc for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1.0281+0.528 * 1.059+0.404 * 1.0648+0.892 * 0.891+0.115 * 0.8154
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0021+4.679 * -0.0806-0.327 * 1.1129
=-2.93

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $32 Mil.
Revenue was 471.831 + 572.198 + 571.308 + 560.209 = $2,176 Mil.
Gross Profit was 333.962 + 450.761 + 418.553 + 449.946 = $1,653 Mil.
Total Current Assets was $742 Mil.
Total Assets was $1,511 Mil.
Property, Plant and Equipment(Net PPE) was $454 Mil.
Depreciation, Depletion and Amortization(DDA) was $72 Mil.
Selling, General & Admin. Expense(SGA) was $1,469 Mil.
Total Current Liabilities was $448 Mil.
Long-Term Debt was $168 Mil.
Net Income was 3.316 + 35.84 + 16.267 + 44.657 = $100 Mil.
Non Operating Income was -2.863 + -3.289 + -14.428 + -2.758 = $-23 Mil.
Cash Flow from Operations was -2.716 + 80.145 + 82.362 + 85.404 = $245 Mil.
Accounts Receivable was $35 Mil.
Revenue was 543.332 + 609.607 + 638.8 + 650.027 = $2,442 Mil.
Gross Profit was 438.277 + 503.102 + 529.525 + 494.017 = $1,965 Mil.
Total Current Assets was $823 Mil.
Total Assets was $1,613 Mil.
Property, Plant and Equipment(Net PPE) was $473 Mil.
Depreciation, Depletion and Amortization(DDA) was $59 Mil.
Selling, General & Admin. Expense(SGA) was $1,645 Mil.
Total Current Liabilities was $410 Mil.
Long-Term Debt was $181 Mil.



1. DSRI = Days Sales in Receivables Index

Measured as the ratio of days’ sales in receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(31.985 / 2175.546) / (34.919 / 2441.766)
=0.01470206 / 0.01430072
=1.0281

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(450.761 / 2441.766) / (333.962 / 2175.546)
=0.80471306 / 0.75991131
=1.059

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than plant, property and equipment to total assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (742.158 + 453.648) / 1511.473) / (1 - (823.149 + 473.177) / 1612.617)
=0.20884726 / 0.19613523
=1.0648

4. SGI = Sales Growth Index

Ratio of sales in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=2175.546 / 2441.766
=0.891

5. DEPI = Depreciation Index

Measured as the ratio of the rate of depreciation in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(59.268 / (59.268 + 473.177)) / (71.715 / (71.715 + 453.648))
=0.11131291 / 0.13650562
=0.8154

6. SGAI = Sales, General and Administrative expenses Index

The ratio of SGA expenses in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(1469.017 / 2175.546) / (1645.284 / 2441.766)
=0.67524061 / 0.67380904
=1.0021

7. LVGI = Leverage Index

The ratio of total debt to total assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase$sgai= in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((168.377 + 448.063) / 1511.473) / ((181.197 + 409.762) / 1612.617)
=0.40784056 / 0.36645961
=1.1129

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(100.08 - -23.338 - 245.195) / 1511.473
=-0.0806

An M-Score of less than -2.22 suggests that the company will not be a manipulator. An M-Score of greater than -2.22 signals that the company is likely to be a manipulator.

Nu Skin Enterprises Inc has a M-score of -2.93 suggests that the company will not be a manipulator.


Related Terms

Altman Z-Score, Piotroski F-Score, Accounts Receivable, Revenue, Gross Profit, Total Current Assets, Total Assets, Property, Plant and Equipment, Depreciation, Depletion and Amortization, Selling, General & Admin. Expense, Total Current Liabilities, Long-Term Debt, Net Income, Non Operating Income, Cash Flow from Operations


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Nu Skin Enterprises Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.23251.16210.65341.27920.98851.08430.93691.27240.64531.1317
GMI 1.00051.0071.0030.99980.99291.00950.97350.99581.03311.0405
AQI 1.07581.0580.9880.93180.85110.83440.8670.61821.15851.174
SGI 0.94451.03791.07771.06691.15491.13451.24411.46420.80890.8745
DEPI 1.07290.93351.00641.01881.45951.00651.41911.56660.76680.7788
SGAI 1.03620.99140.96670.97440.97660.99910.99880.97971.01560.9949
LVGI 1.09761.09060.91940.89350.9570.89951.19881.1580.73821.084
TATA -0.0616-0.0034-0.0296-0.0605-0.0552-0.0694-0.0833-0.0940.1854-0.1038
M-score -2.60-2.32-2.84-2.43-2.60-2.64-2.79-2.39-1.97-2.92

Nu Skin Enterprises Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 1.25050.86480.49240.71240.64530.83481.45811.15981.13171.0281
GMI 0.99240.99031.00641.01791.03311.04631.0131.03761.04051.059
AQI 0.61820.70230.88451.09011.15851.04060.98070.98011.1741.0648
SGI 1.48981.49511.43481.12870.80890.73850.71590.75750.87450.891
DEPI 1.56661.25011.01510.82320.76680.78720.78540.78790.77880.8154
SGAI 0.98790.99120.99931.00951.01561.00751.00340.99880.99491.0021
LVGI 1.1581.01710.90890.70670.73820.87360.94921.10791.0841.1129
TATA -0.09230.04940.11770.25890.18540.0252-0.0388-0.0949-0.1038-0.0806
M-score -2.39-2.03-2.02-1.30-1.97-2.69-2.50-3.04-2.92-2.93
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