Switch to:
Nu Skin Enterprises Inc (NYSE:NUS)
Beneish M-Score
-2.03 (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 -2.03 signals that the company is a manipulator.

NUS' s 10-Year Beneish M-Score Range
Min: -3.39   Max: -1.64
Current: -2.03

-3.39
-1.64

During the past 13 years, the highest Beneish M-Score of Nu Skin Enterprises Inc was -1.64. The lowest was -3.39. And the median was -2.57.


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 * 0.4955+0.528 * 1.0077+0.404 * 0.8845+0.892 * 1.4259+0.115 * 1.0151
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9963+4.679 * 0.1159-0.327 * 0.9089
=-2.03

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was $42 Mil.
Revenue was 650.027 + 671.061 + 1016.085 + 927.612 = $3,265 Mil.
Gross Profit was 494.017 + 564.417 + 851.413 + 787.796 = $2,698 Mil.
Total Current Assets was $846 Mil.
Total Assets was $1,604 Mil.
Property, Plant and Equipment(Net PPE) was $429 Mil.
Depreciation, Depletion and Amortization(DDA) was $44 Mil.
Selling, General & Admin. Expense(SGA) was $2,185 Mil.
Total Current Liabilities was $519 Mil.
Long-Term Debt was $112 Mil.
Net Income was 19.507 + 54.854 + 125.271 + 110.9 = $311 Mil.
Non Operating Income was -21.119 + -17.508 + 6.399 + 0.504 = $-32 Mil.
Cash Flow from Operations was -24.265 + -160.6 + 46.033 + 295.286 = $156 Mil.
Accounts Receivable was $59 Mil.
Revenue was 671.328 + 541.305 + 550.838 + 526.182 = $2,290 Mil.
Gross Profit was 560.055 + 451.26 + 455.794 + 439.414 = $1,907 Mil.
Total Current Assets was $766 Mil.
Total Assets was $1,393 Mil.
Property, Plant and Equipment(Net PPE) was $305 Mil.
Depreciation, Depletion and Amortization(DDA) was $32 Mil.
Selling, General & Admin. Expense(SGA) was $1,538 Mil.
Total Current Liabilities was $474 Mil.
Long-Term Debt was $129 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)
=(41.712 / 3264.785) / (59.043 / 2289.653)
=0.01277634 / 0.02578688
=0.4955

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)
=(564.417 / 2289.653) / (494.017 / 3264.785)
=0.83266897 / 0.82628504
=1.0077

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 - (846.047 + 429.332) / 1603.614) / (1 - (765.796 + 304.619) / 1392.707)
=0.20468454 / 0.23141407
=0.8845

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
=3264.785 / 2289.653
=1.4259

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))
=(32.001 / (32.001 + 304.619)) / (44.361 / (44.361 + 429.332))
=0.09506565 / 0.09364926
=1.0151

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)
=(2184.839 / 3264.785) / (1538.012 / 2289.653)
=0.66921375 / 0.67172275
=0.9963

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)
=((111.621 + 518.676) / 1603.614) / ((128.664 + 473.63) / 1392.707)
=0.39304783 / 0.43246282
=0.9089

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
=(310.532 - -31.724 - 156.454) / 1603.614
=0.1159

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 -2.03 signals that the company is likely to 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

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 1.07821.09010.92750.97850.94131.15460.92161.23480.87020.4955
GMI 0.96170.96260.96770.97681.0021.00550.9990.99360.99151.0077
AQI 0.87240.79480.82390.8670.85780.81920.67410.61820.70230.8845
SGI 1.15371.2331.25871.22261.22181.1571.29581.48031.48591.4259
DEPI 1.04241.07791.17851.41911.60981.75441.77991.56661.25011.0151
SGAI 1.00270.99961.00130.99050.99150.98870.98480.98470.98810.9963
LVGI 0.89081.2761.33381.19881.26771.00211.13341.1581.01710.9089
TATA -0.0241-0.0891-0.1131-0.088-0.1058-0.0701-0.1567-0.0940.04750.1159
M-score -2.42-2.79-3.02-2.79-2.90-2.51-3.10-2.42-2.04-2.03
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK