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Nutraceutical International Corp (NAS:NUTR)
Beneish M-Score
-2.59 (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.

Nutraceutical International Corp has a M-score of -2.59 suggests that the company is not a manipulator.

NUTR' s 10-Year Beneish M-Score Range
Min: -6.06   Max: -2.31
Current: -2.59

-6.06
-2.31

During the past 13 years, the highest Beneish M-Score of Nutraceutical International Corp was -2.31. The lowest was -6.06. And the median was -2.73.


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 Nutraceutical International Corp 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 * 1.0017+0.528 * 0.9903+0.404 * 1.1425+0.892 * 1.0284+0.115 * 0.9417
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.023+4.679 * -0.0338-0.327 * 1.0625
=-2.59

* 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 $14.7 Mil.
Revenue was 55.625 + 54.859 + 51.55 + 51.256 = $213.3 Mil.
Gross Profit was 27.152 + 27.16 + 26.062 + 25.709 = $106.1 Mil.
Total Current Assets was $80.1 Mil.
Total Assets was $211.7 Mil.
Property, Plant and Equipment(Net PPE) was $79.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $10.8 Mil.
Selling, General & Admin. Expense(SGA) was $75.7 Mil.
Total Current Liabilities was $22.4 Mil.
Long-Term Debt was $41.5 Mil.
Net Income was 3.997 + 4.324 + 4.135 + 4.136 = $16.6 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was 5.324 + 5.305 + 5.496 + 7.613 = $23.7 Mil.
Accounts Receivable was $14.3 Mil.
Revenue was 50.814 + 56.583 + 49.744 + 50.261 = $207.4 Mil.
Gross Profit was 24.879 + 28.15 + 24.141 + 24.979 = $102.1 Mil.
Total Current Assets was $70.5 Mil.
Total Assets was $186.9 Mil.
Property, Plant and Equipment(Net PPE) was $76.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $9.7 Mil.
Selling, General & Admin. Expense(SGA) was $72.0 Mil.
Total Current Liabilities was $20.6 Mil.
Long-Term Debt was $32.5 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)
=(14.737 / 213.29) / (14.306 / 207.402)
=0.06909372 / 0.06897716
=1.0017

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)
=(27.16 / 207.402) / (27.152 / 213.29)
=0.49251695 / 0.49736509
=0.9903

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 - (80.053 + 79.337) / 211.669) / (1 - (70.492 + 76.035) / 186.94)
=0.24698468 / 0.21618166
=1.1425

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
=213.29 / 207.402
=1.0284

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))
=(9.691 / (9.691 + 76.035)) / (10.823 / (10.823 + 79.337))
=0.11304622 / 0.12004215
=0.9417

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)
=(75.714 / 213.29) / (71.966 / 207.402)
=0.35498148 / 0.34698798
=1.023

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)
=((41.5 + 22.427) / 211.669) / ((32.5 + 20.635) / 186.94)
=0.30201399 / 0.28423558
=1.0625

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
=(16.592 - 0 - 23.738) / 211.669
=-0.0338

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.

Nutraceutical International Corp has a M-score of -2.59 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.

Nutraceutical International Corp Annual Data

Sep04Sep05Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13
DSRI 0.88910.95160.98851.04470.97170.99151.22690.93310.969
GMI 0.97961.0180.98030.97080.99731.03641.02981.01461.0105
AQI 1.04781.01180.89471.32320.87890.62430.94071.03890.9405
SGI 1.13041.05281.0151.04081.0660.97281.04451.06541.0401
DEPI 0.99051.10311.18741.15031.08620.944300.96420.9153
SGAI 1.04681.0310.991.07381.01490.95460.99470.98260.9748
LVGI 0.71090.78550.87881.74771.06220.9361.03160.97570.9601
TATA -0.0769-0.074-0.018-0.0707-0.0362-0.2957-0.0486-0.0613-0.0508
M-score -2.73-2.73-2.55-2.86-2.68-4.01-2.59-2.74-2.72

Nutraceutical International Corp Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 1.03050.8870.93310.94781.0211.11120.9690.98920.95361.0017
GMI 1.03491.03111.01461.01181.00741.00921.01050.9940.99340.9903
AQI 0.97771.03591.03891.03530.99720.92790.94051.01341.03561.1425
SGI 1.06411.05881.06541.0741.06411.05851.04011.0331.01111.0284
DEPI 0.80790.76810.96420.9510.91350.90320.91530.93170.94790.9417
SGAI 0.98630.99380.98260.97740.97050.96170.97480.98391.01361.023
LVGI 1.05921.14920.97571.11230.99390.90230.96010.870.95631.0625
TATA -0.057-0.0606-0.0613-0.0577-0.0461-0.0315-0.0508-0.0392-0.0298-0.0338
M-score -2.69-2.86-2.74-2.75-2.62-2.47-2.72-2.60-2.64-2.59
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