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Nu Skin Enterprises Inc (NYSE:NUS)
Beneish M-Score
-2.51 (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 -2.51 suggests that the company is not a manipulator.

NUS' s 10-Year Beneish M-Score Range
Min: -3.39   Max: -1.31
Current: -2.51

-3.39
-1.31

During the past 13 years, the highest Beneish M-Score of Nu Skin Enterprises Inc was -1.31. 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 * 1.4491+0.528 * 1.0117+0.404 * 0.9807+0.892 * 0.7204+0.115 * 0.7854
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0065+4.679 * -0.0388-0.327 * 0.9492
=-2.51

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

This Year (Jun15) TTM:Last Year (Jun14) TTM:
Accounts Receivable was $44 Mil.
Revenue was 560.209 + 543.332 + 609.607 + 638.8 = $2,352 Mil.
Gross Profit was 449.946 + 438.277 + 503.102 + 529.525 = $1,921 Mil.
Total Current Assets was $808 Mil.
Total Assets was $1,603 Mil.
Property, Plant and Equipment(Net PPE) was $473 Mil.
Depreciation, Depletion and Amortization(DDA) was $64 Mil.
Selling, General & Admin. Expense(SGA) was $1,584 Mil.
Total Current Liabilities was $421 Mil.
Long-Term Debt was $177 Mil.
Net Income was 44.657 + 36.282 + 46.507 + 68.308 = $196 Mil.
Non Operating Income was -2.758 + -12.268 + -16.127 + 1.073 = $-30 Mil.
Cash Flow from Operations was 85.404 + 74.198 + 94.793 + 33.608 = $288 Mil.
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.



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)
=(43.543 / 2351.948) / (41.712 / 3264.785)
=0.01851359 / 0.01277634
=1.4491

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)
=(438.277 / 3264.785) / (449.946 / 2351.948)
=0.82628504 / 0.81670598
=1.0117

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 - (807.707 + 473.216) / 1602.62) / (1 - (846.047 + 429.332) / 1603.614)
=0.20073193 / 0.20468454
=0.9807

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
=2351.948 / 3264.785
=0.7204

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))
=(44.361 / (44.361 + 429.332)) / (64.06 / (64.06 + 473.216))
=0.09364926 / 0.11923108
=0.7854

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)
=(1584.149 / 2351.948) / (2184.839 / 3264.785)
=0.67354763 / 0.66921375
=1.0065

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)
=((177.178 + 420.749) / 1602.62) / ((111.621 + 518.676) / 1603.614)
=0.37309343 / 0.39304783
=0.9492

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
=(195.754 - -30.08 - 288.003) / 1602.62
=-0.0388

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 -2.51 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 1.00111.23251.16210.65341.27920.98851.08430.93691.27240.6453
GMI 1.00791.00051.0071.0030.99980.99291.00950.97350.99581.0331
AQI 0.9721.07581.0580.9880.93180.85110.83440.89360.59981.1585
SGI 1.03780.94451.03791.07771.06691.15491.13451.24411.46420.8089
DEPI 1.00281.07290.93351.00641.01881.45951.00651.41911.56660.7668
SGAI 0.99961.03620.99140.96670.97440.97660.99910.99880.97971.0156
LVGI 0.89471.09761.09060.91940.89350.9570.89951.16961.18690.7382
TATA -0.0529-0.0302-0.0156-0.0283-0.0605-0.0552-0.0694-0.0813-0.0940.1854
M-score -2.67-2.46-2.38-2.83-2.43-2.60-2.64-2.76-2.41-1.97

Nu Skin Enterprises Inc Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 0.92211.12620.90221.27240.88520.5080.74270.64530.83261.4491
GMI 0.99791.00050.9950.99580.99491.01271.02641.03311.04581.0117
AQI 0.85780.81920.67410.59980.70230.88451.09011.15851.04060.9807
SGI 1.24731.18621.32371.46421.46061.39081.08260.80890.74040.7204
DEPI 1.60981.75441.77991.56661.25011.01510.82320.76680.78720.7854
SGAI 1.00131.00060.9950.97970.98020.98440.98911.01561.00881.0065
LVGI 1.26771.00211.13341.18691.01710.90890.70670.73820.87360.9492
TATA -0.1015-0.0664-0.1536-0.0940.04750.11590.2570.18540.0252-0.0388
M-score -2.88-2.50-3.09-2.41-2.05-2.05-1.31-1.97-2.69-2.51
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