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Nu Skin Enterprises Inc (NYSE:NUS)
Beneish M-Score
-3.26 (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 -3.04 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: -3.26

-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 -2.60.


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 * 1.1598+0.528 * 1.0376+0.404 * 0.9801+0.892 * 0.7575+0.115 * 0.7879
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9988+4.679 * -0.0949-0.327 * 1.1079
=-3.04

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $36 Mil.
Revenue was 571.308 + 560.209 + 543.332 + 609.607 = $2,284 Mil.
Gross Profit was 418.553 + 449.946 + 438.277 + 503.102 = $1,810 Mil.
Total Current Assets was $777 Mil.
Total Assets was $1,553 Mil.
Property, Plant and Equipment(Net PPE) was $460 Mil.
Depreciation, Depletion and Amortization(DDA) was $68 Mil.
Selling, General & Admin. Expense(SGA) was $1,536 Mil.
Total Current Liabilities was $411 Mil.
Long-Term Debt was $186 Mil.
Net Income was 16.267 + 44.657 + 36.282 + 46.507 = $144 Mil.
Non Operating Income was -14.428 + -2.758 + -12.268 + -16.127 = $-46 Mil.
Cash Flow from Operations was 82.362 + 85.404 + 74.198 + 94.793 = $337 Mil.
Accounts Receivable was $41 Mil.
Revenue was 638.8 + 650.027 + 671.061 + 1055.786 = $3,016 Mil.
Gross Profit was 529.525 + 494.017 + 564.417 + 891.114 = $2,479 Mil.
Total Current Assets was $805 Mil.
Total Assets was $1,573 Mil.
Property, Plant and Equipment(Net PPE) was $440 Mil.
Depreciation, Depletion and Amortization(DDA) was $50 Mil.
Selling, General & Admin. Expense(SGA) was $2,030 Mil.
Total Current Liabilities was $450 Mil.
Long-Term Debt was $96 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)
=(35.682 / 2284.456) / (40.612 / 3015.674)
=0.01561947 / 0.01346697
=1.1598

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)
=(449.946 / 3015.674) / (418.553 / 2284.456)
=0.82206266 / 0.79225776
=1.0376

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 - (776.883 + 459.644) / 1553.458) / (1 - (805.422 + 440.352) / 1573.249)
=0.20401646 / 0.20815205
=0.9801

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
=2284.456 / 3015.674
=0.7575

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))
=(49.83 / (49.83 + 440.352)) / (68.092 / (68.092 + 459.644))
=0.10165612 / 0.12902663
=0.7879

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)
=(1535.592 / 2284.456) / (2029.588 / 3015.674)
=0.67219154 / 0.67301306
=0.9988

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)
=((186.222 + 411.061) / 1553.458) / ((95.783 + 450.174) / 1573.249)
=0.38448609 / 0.34702517
=1.1079

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
=(143.713 - -45.581 - 336.757) / 1553.458
=-0.0949

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 -3.04 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 1.00111.23251.16210.65341.27920.98851.08430.95331.25050.6453
GMI 1.00791.00051.0071.0030.99980.99291.00950.97680.99241.0331
AQI 0.9721.07581.0580.9880.93180.85110.83440.8670.61821.1585
SGI 1.03780.94451.03791.07771.06691.15491.13451.22261.48980.8089
DEPI 1.00281.07290.93351.00641.01881.45951.00651.41911.56660.7668
SGAI 0.99961.03620.99140.96670.97440.97660.99910.99050.98791.0156
LVGI 0.89471.09761.09060.91940.89350.9570.89951.19881.1580.7382
TATA -0.0529-0.0302-0.0156-0.0283-0.0579-0.0475-0.0646-0.088-0.09230.1854
M-score -2.67-2.46-2.38-2.83-2.42-2.57-2.61-2.82-2.39-1.97

Nu Skin Enterprises Inc Quarterly Data

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
DSRI 1.15460.92821.25050.86480.49240.71240.64530.83481.45811.1598
GMI 1.00551.00040.99240.99031.00641.01791.03311.04631.0131.0376
AQI 0.81920.67410.61820.70230.88451.09011.15851.04060.98070.9801
SGI 1.1571.28651.48981.49511.43481.12870.80890.73850.71590.7575
DEPI 1.75441.77991.56661.25011.01510.82320.76680.78720.78540.7879
SGAI 0.98870.98130.98790.99120.99931.00951.01561.00751.00340.9988
LVGI 1.00211.13341.1581.01710.90890.70670.73820.87360.94921.1079
TATA -0.0701-0.1567-0.09230.04940.11770.25890.18540.0252-0.0388-0.0949
M-score -2.51-3.11-2.39-2.03-2.02-1.30-1.97-2.69-2.50-3.04
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