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Nu Skin Enterprises Inc (NYSE:NUS)
Beneish M-Score
-2.69 (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 -2.69 suggests that the company is not a manipulator.

NUS' s 10-Year Beneish M-Score Range
Min: -3.39   Max: -1.3
Current: -2.69

-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 * 0.8348+0.528 * 1.0463+0.404 * 1.0406+0.892 * 0.7385+0.115 * 0.7872
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0075+4.679 * 0.0252-0.327 * 0.8736
=-2.69

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
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.
Net Income was 36.282 + 46.507 + 68.308 + 19.507 = $171 Mil.
Non Operating Income was -12.268 + -16.127 + 1.073 + -21.119 = $-48 Mil.
Cash Flow from Operations was 74.198 + 94.793 + 33.608 + -24.265 = $178 Mil.
Accounts Receivable was $57 Mil.
Revenue was 671.061 + 1055.786 + 908.299 + 671.328 = $3,306 Mil.
Gross Profit was 564.417 + 891.114 + 768.483 + 560.055 = $2,784 Mil.
Total Current Assets was $921 Mil.
Total Assets was $1,642 Mil.
Property, Plant and Equipment(Net PPE) was $412 Mil.
Depreciation, Depletion and Amortization(DDA) was $40 Mil.
Selling, General & Admin. Expense(SGA) was $2,211 Mil.
Total Current Liabilities was $579 Mil.
Long-Term Debt was $110 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)
=(34.919 / 2441.766) / (56.644 / 3306.474)
=0.01430072 / 0.01713124
=0.8348

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)
=(503.102 / 3306.474) / (438.277 / 2441.766)
=0.84200541 / 0.80471306
=1.0463

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 - (823.149 + 473.177) / 1612.617) / (1 - (920.97 + 411.929) / 1642.473)
=0.19613523 / 0.18848042
=1.0406

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
=2441.766 / 3306.474
=0.7385

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))
=(39.562 / (39.562 + 411.929)) / (59.268 / (59.268 + 473.177))
=0.08762522 / 0.11131291
=0.7872

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)
=(1645.284 / 2441.766) / (2211.419 / 3306.474)
=0.67380904 / 0.66881488
=1.0075

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)
=((181.197 + 409.762) / 1612.617) / ((109.882 + 579.122) / 1642.473)
=0.36645961 / 0.41949183
=0.8736

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
=(170.604 - -48.441 - 178.334) / 1612.617
=0.0252

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 -2.69 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

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 0.95330.94131.15460.92821.25050.86480.49240.71240.64530.8348
GMI 0.97681.0021.00551.00040.99240.99031.00641.01791.03311.0463
AQI 0.8670.85780.81920.67410.61820.70230.88451.09011.15851.0406
SGI 1.22261.22181.1571.28651.48981.49511.43481.12870.80890.7385
DEPI 1.41911.60981.75441.77991.56661.25011.01510.82320.76680.7872
SGAI 0.99050.99150.98870.98130.98790.99120.99931.00951.01561.0075
LVGI 1.19881.26771.00211.13341.1581.01710.90890.70670.73820.8736
TATA -0.088-0.1058-0.0701-0.1567-0.09230.04940.11770.25890.18540.0252
M-score -2.82-2.90-2.51-3.11-2.39-2.03-2.02-1.30-1.97-2.69
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