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Nu Skin Enterprises Inc (NYSE:NUS)
Beneish M-Score
-2.85 (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 -2.85 suggests that the company is not a manipulator.

NUS' s Beneish M-Score Range Over the Past 10 Years
Min: -3.39   Max: -1.32
Current: -2.85

-3.39
-1.32

During the past 13 years, the highest Beneish M-Score of Nu Skin Enterprises Inc was -1.32. The lowest was -3.39. And the median was -2.62.


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 * 1.0245+0.528 * 1.0266+0.404 * 0.8891+0.892 * 0.9843+0.115 * 0.9308
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9945+4.679 * -0.0582-0.327 * 1.1991
=-2.85

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $36 Mil.
Revenue was 604.162 + 600.475 + 471.831 + 572.198 = $2,249 Mil.
Gross Profit was 478.299 + 472.27 + 333.962 + 450.761 = $1,735 Mil.
Total Current Assets was $982 Mil.
Total Assets was $1,752 Mil.
Property, Plant and Equipment(Net PPE) was $452 Mil.
Depreciation, Depletion and Amortization(DDA) was $73 Mil.
Selling, General & Admin. Expense(SGA) was $1,503 Mil.
Total Current Liabilities was $451 Mil.
Long-Term Debt was $356 Mil.
Net Income was 56.872 + 44.713 + 3.316 + 35.84 = $141 Mil.
Non Operating Income was -5.695 + -11.06 + -2.863 + -3.289 = $-23 Mil.
Cash Flow from Operations was 49.605 + 138.541 + -2.716 + 80.145 = $266 Mil.
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.



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)
=(35.985 / 2248.666) / (35.682 / 2284.456)
=0.01600282 / 0.01561947
=1.0245

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)
=(1809.878 / 2284.456) / (1735.292 / 2248.666)
=0.79225776 / 0.77169842
=1.0266

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 - (982.469 + 451.571) / 1751.815) / (1 - (776.883 + 459.644) / 1553.458)
=0.18139758 / 0.20401646
=0.8891

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
=2248.666 / 2284.456
=0.9843

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))
=(68.092 / (68.092 + 459.644)) / (72.666 / (72.666 + 451.571))
=0.12902663 / 0.13861288
=0.9308

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)
=(1503.257 / 2248.666) / (1535.592 / 2284.456)
=0.66851057 / 0.67219154
=0.9945

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)
=((356.298 + 451.38) / 1751.815) / ((186.222 + 411.061) / 1553.458)
=0.46105211 / 0.38448609
=1.1991

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
=(140.741 - -22.907 - 265.575) / 1751.815
=-0.0582

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 -2.85 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 local exchange's 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 1.07581.0580.9880.93180.85110.83440.89360.59981.15851.174
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 1.09761.09060.91940.89350.9570.89951.16961.18690.73821.084
TATA -0.0616-0.0156-0.0283-0.0605-0.0552-0.0694-0.0813-0.0940.1854-0.1038
M-score -2.60-2.38-2.83-2.43-2.60-2.64-2.76-2.41-1.97-2.92

Nu Skin Enterprises Inc Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 0.5080.74270.64530.83261.44911.14461.13171.02810.77291.0245
GMI 1.01271.02641.03311.04581.01171.03461.04051.0591.081.0266
AQI 0.88451.09011.15851.04010.98070.98011.1741.06480.88630.8891
SGI 1.39081.08260.80890.74040.72040.76760.87450.8910.94210.9843
DEPI 1.01510.82320.76680.78720.78540.78790.77880.81540.87050.9308
SGAI 0.98440.98911.01561.00881.00651.00530.99491.00210.99390.9945
LVGI 0.90890.70670.73820.86110.94921.10791.0841.11291.2841.1991
TATA 0.11490.2560.18260.0252-0.0388-0.0949-0.1038-0.0806-0.0935-0.0582
M-score -2.05-1.32-1.98-2.69-2.51-3.05-2.92-2.93-3.29-2.85
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