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Nu Skin Enterprises, Inc. (NYSE:NUS)
Beneish M-Score
-2.42 (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 -2.42 suggests that the company is not a manipulator.

NUS' s 10-Year Beneish M-Score Range
Min: -3.24   Max: -1.9
Current: -2.42

-3.24
-1.9

During the past 13 years, the highest Beneish M-Score of Nu Skin Enterprises, Inc. was -1.90. The lowest was -3.24. And the median was -2.56.


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 * 1.2269+0.528 * 0.9924+0.404 * 0.6182+0.892 * 1.4898+0.115 * 1.5666
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9879+4.679 * -0.094-0.327 * 1.158
=-2.42

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

This Year (Dec13) TTM:Last Year (Dec12) TTM:
Accounts Receivable was $74 Mil.
Revenue was 1016.085 + 927.612 + 682.927 + 550.094 = $3,177 Mil.
Gross Profit was 851.413 + 787.796 + 571.654 + 460.049 = $2,671 Mil.
Total Current Assets was $1,118 Mil.
Total Assets was $1,821 Mil.
Property, Plant and Equipment(Net PPE) was $396 Mil.
Depreciation, Depletion and Amortization(DDA) was $35 Mil.
Selling, General & Admin. Expense(SGA) was $2,117 Mil.
Total Current Liabilities was $777 Mil.
Long-Term Debt was $114 Mil.
Net Income was 125.271 + 110.9 + 74.435 + 54.282 = $365 Mil.
Non Operating Income was 6.399 + 0.504 + -1.187 + 0.112 = $6 Mil.
Cash Flow from Operations was 46.033 + 295.286 + 118.471 + 70.386 = $530 Mil.
Accounts Receivable was $41 Mil.
Revenue was 550.838 + 526.182 + 593.235 + 462.002 = $2,132 Mil.
Gross Profit was 455.794 + 439.414 + 497.651 + 386.246 = $1,779 Mil.
Total Current Assets was $589 Mil.
Total Assets was $1,125 Mil.
Property, Plant and Equipment(Net PPE) was $230 Mil.
Depreciation, Depletion and Amortization(DDA) was $33 Mil.
Selling, General & Admin. Expense(SGA) was $1,438 Mil.
Total Current Liabilities was $320 Mil.
Long-Term Debt was $155 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)
=(74.397 / 3176.718) / (40.701 / 2132.257)
=0.02341945 / 0.01908822
=1.2269

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)
=(787.796 / 2132.257) / (851.413 / 3176.718)
=0.83437644 / 0.84077718
=0.9924

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 - (1118.334 + 396.042) / 1821.062) / (1 - (588.603 + 229.787) / 1124.807)
=0.16841052 / 0.2724174
=0.6182

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
=3176.718 / 2132.257
=1.4898

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))
=(33.412 / (33.412 + 229.787)) / (34.923 / (34.923 + 396.042))
=0.12694577 / 0.08103442
=1.5666

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)
=(2116.8 / 3176.718) / (1438.261 / 2132.257)
=0.6663481 / 0.67452516
=0.9879

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)
=((113.852 + 776.792) / 1821.062) / ((154.963 + 320.103) / 1124.807)
=0.48907945 / 0.42235335
=1.158

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
=(364.888 - 5.828 - 530.176) / 1821.062
=-0.094

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 -2.42 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 0.92471.00111.23251.16210.65341.27920.98851.16680.97851.2269
GMI 0.98691.00791.00051.0071.0030.99980.99291.00950.97680.9924
AQI 1.02950.9721.07581.0580.9880.93180.85110.83440.8670.6182
SGI 1.15351.03780.94451.03791.07771.06691.15491.13451.22261.4898
DEPI 1.01311.00281.07290.93351.00641.01881.45951.00651.41911.5666
SGAI 1.0210.99961.03620.99140.96670.97440.97660.99910.99050.9879
LVGI 0.98450.89471.09761.09060.91940.89350.9570.89951.19881.158
TATA -0.0805-0.0529-0.0302-0.0156-0.0283-0.0579-0.0475-0.0646-0.088-0.094
M-score -2.78-2.67-2.46-2.38-2.83-2.42-2.57-2.54-2.79-2.42

Nu Skin Enterprises, Inc. Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DSRI 1.14121.16681.07821.09010.92750.97850.93761.14440.91461.2269
GMI 1.01541.00950.96170.96260.96770.97681.00121.00370.99760.9924
AQI 0.87830.83440.87240.79480.82390.8670.85780.81920.67410.6182
SGI 1.08971.13451.15371.2331.25871.22261.22661.16731.30561.4898
DEPI 1.35511.00651.04241.07791.17851.41911.60981.75441.77991.5666
SGAI 0.99150.99911.00270.99961.00130.99050.99340.9930.98840.9879
LVGI 0.82910.89950.89081.2761.33381.19881.26771.00211.13341.158
TATA -0.0292-0.0646-0.0241-0.0891-0.1131-0.088-0.1058-0.0701-0.1567-0.094
M-score -2.35-2.54-2.42-2.79-3.02-2.79-2.90-2.51-3.10-2.42
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