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Nu Skin Enterprises Inc (NYSE:NUS)
Beneish M-Score
-3.29 (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 -3.29 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: -3.29

-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 * 0.7729+0.528 * 1.08+0.404 * 0.8863+0.892 * 0.9421+0.115 * 0.8705
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9939+4.679 * -0.0935-0.327 * 1.284
=-3.29

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $32 Mil.
Revenue was 600.475 + 471.831 + 572.198 + 571.308 = $2,216 Mil.
Gross Profit was 472.27 + 333.962 + 450.761 + 418.553 = $1,676 Mil.
Total Current Assets was $1,011 Mil.
Total Assets was $1,781 Mil.
Property, Plant and Equipment(Net PPE) was $453 Mil.
Depreciation, Depletion and Amortization(DDA) was $72 Mil.
Selling, General & Admin. Expense(SGA) was $1,483 Mil.
Total Current Liabilities was $491 Mil.
Long-Term Debt was $362 Mil.
Net Income was 44.713 + 3.316 + 35.84 + 16.267 = $100 Mil.
Non Operating Income was -11.06 + -2.863 + -3.289 + -14.428 = $-32 Mil.
Cash Flow from Operations was 138.541 + -2.716 + 80.145 + 82.362 = $298 Mil.
Accounts Receivable was $44 Mil.
Revenue was 560.209 + 543.332 + 609.607 + 638.8 = $2,352 Mil.
Gross Profit was 449.946 + 438.277 + 503.102 + 529.525 = $1,921 Mil.
Total Current Assets was $808 Mil.
Total Assets was $1,603 Mil.
Property, Plant and Equipment(Net PPE) was $473 Mil.
Depreciation, Depletion and Amortization(DDA) was $64 Mil.
Selling, General & Admin. Expense(SGA) was $1,584 Mil.
Total Current Liabilities was $421 Mil.
Long-Term Debt was $177 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)
=(31.706 / 2215.812) / (43.543 / 2351.948)
=0.01430898 / 0.01851359
=0.7729

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)
=(1920.85 / 2351.948) / (1675.546 / 2215.812)
=0.81670598 / 0.75617697
=1.08

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 - (1010.7 + 453.342) / 1780.869) / (1 - (807.707 + 473.216) / 1602.62)
=0.17790584 / 0.20073193
=0.8863

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
=2215.812 / 2351.948
=0.9421

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))
=(64.06 / (64.06 + 473.216)) / (71.948 / (71.948 + 453.342))
=0.11923108 / 0.13696815
=0.8705

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)
=(1483.344 / 2215.812) / (1584.149 / 2351.948)
=0.66943585 / 0.67354763
=0.9939

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)
=((362.051 + 491.105) / 1780.869) / ((177.178 + 420.749) / 1602.62)
=0.47906724 / 0.37309343
=1.284

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
=(100.136 - -31.64 - 298.332) / 1780.869
=-0.0935

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 -3.29 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 1.23251.16210.65341.27920.98851.09970.941.25050.64531.1317
GMI 1.00051.0071.0030.99980.99291.01280.97360.99241.03311.0405
AQI 1.07581.0580.9880.93180.85110.83440.8670.61821.15851.174
SGI 0.94451.03791.07771.06691.15491.11861.241.48980.80890.8745
DEPI 1.07290.93351.00641.01881.45951.00651.41911.56660.76680.7788
SGAI 1.03620.99140.96670.97440.97660.99250.99710.98791.01560.9949
LVGI 1.09761.09060.91940.89350.9570.89951.19881.1580.73821.084
TATA -0.0616-0.0156-0.0283-0.0579-0.0475-0.0694-0.0833-0.09230.1854-0.1038
M-score -2.60-2.38-2.83-2.42-2.57-2.63-2.79-2.39-1.97-2.92

Nu Skin Enterprises Inc Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 0.86480.49240.71240.64530.83481.45811.15981.13171.02810.7729
GMI 0.99031.00641.01791.03311.04631.0131.03761.04051.0591.08
AQI 0.70230.88451.09011.15851.04060.98070.98011.1741.06480.8863
SGI 1.49511.43481.12870.80890.73850.71590.75750.87450.8910.9421
DEPI 1.25011.01510.82320.76680.78720.78540.78790.77880.81540.8705
SGAI 0.99120.99931.00951.01561.00751.00340.99880.99491.00210.9939
LVGI 1.01710.90890.70670.73820.87360.94921.10791.0841.11291.284
TATA 0.04940.11770.25890.18540.0252-0.0388-0.0949-0.1038-0.0806-0.0935
M-score -2.03-2.02-1.30-1.97-2.69-2.50-3.04-2.92-2.93-3.29
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