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Nutraceutical International Corp (NAS:NUTR)
Beneish M-Score
-2.36 (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 -2.36 suggests that the company is not a manipulator.

NUTR' s 10-Year Beneish M-Score Range
Min: -6.06   Max: -2.31
Current: -2.36

-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 * 1.1478+0.528 * 1.0149+0.404 * 1.0593+0.892 * 1.0274+0.115 * 0.8753
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0347+4.679 * -0.0115-0.327 * 0.9994
=-2.36

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
Accounts Receivable was $15.1 Mil.
Revenue was 53.044 + 52.44 + 55.625 + 54.859 = $216.0 Mil.
Gross Profit was 25.855 + 25.931 + 27.152 + 27.16 = $106.1 Mil.
Total Current Assets was $80.7 Mil.
Total Assets was $211.9 Mil.
Property, Plant and Equipment(Net PPE) was $79.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $12.1 Mil.
Selling, General & Admin. Expense(SGA) was $77.8 Mil.
Total Current Liabilities was $17.4 Mil.
Long-Term Debt was $42.0 Mil.
Net Income was 3.351 + 3.433 + 3.997 + 4.324 = $15.1 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was 3.007 + 3.913 + 5.324 + 5.305 = $17.5 Mil.
Accounts Receivable was $12.8 Mil.
Revenue was 51.55 + 51.256 + 50.814 + 56.583 = $210.2 Mil.
Gross Profit was 26.062 + 25.709 + 24.879 + 28.15 = $104.8 Mil.
Total Current Assets was $75.6 Mil.
Total Assets was $198.2 Mil.
Property, Plant and Equipment(Net PPE) was $77.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $10.0 Mil.
Selling, General & Admin. Expense(SGA) was $73.2 Mil.
Total Current Liabilities was $21.1 Mil.
Long-Term Debt was $34.5 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)
=(15.076 / 215.968) / (12.784 / 210.203)
=0.06980664 / 0.0608174
=1.1478

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)
=(25.931 / 210.203) / (25.855 / 215.968)
=0.49856567 / 0.49126722
=1.0149

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 - (80.665 + 79.87) / 211.9) / (1 - (75.633 + 77.236) / 198.228)
=0.24240208 / 0.22882237
=1.0593

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
=215.968 / 210.203
=1.0274

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))
=(10.027 / (10.027 + 77.236)) / (12.069 / (12.069 + 79.87))
=0.11490552 / 0.13127182
=0.8753

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)
=(77.847 / 215.968) / (73.23 / 210.203)
=0.36045618 / 0.34837752
=1.0347

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)
=((42 + 17.393) / 211.9) / ((34.5 + 21.094) / 198.228)
=0.28028787 / 0.28045483
=0.9994

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
=(15.105 - 0 - 17.549) / 211.9
=-0.0115

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 -2.36 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

Sep05Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13Sep14
DSRI 0.95160.98851.04470.97170.99150.83361.22690.93310.9691.0725
GMI 1.0180.98030.97080.99731.03641.00691.02981.01461.01050.996
AQI 1.01180.89471.32320.87890.62431.11930.94071.03890.94051.1274
SGI 1.05281.0151.04081.0660.97281.10911.04451.06541.04011.0292
DEPI 1.10311.18741.15031.08620.94435.17170.20510.96420.91530.9005
SGAI 1.0310.991.07381.01490.95460.9520.99470.98260.97481.0315
LVGI 0.78550.87881.74771.06220.9361.06821.03160.97570.96011.0671
TATA -0.074-0.018-0.0707-0.0362-0.29570.1118-0.0486-0.0613-0.0508-0.0193
M-score -2.73-2.55-2.86-2.68-4.01-1.50-2.57-2.74-2.72-2.47

Nutraceutical International Corp Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 0.93310.94781.0211.11120.9690.98920.95361.00171.07251.1478
GMI 1.01461.01181.00741.00921.01050.9940.99340.99030.9961.0149
AQI 1.03891.03530.99720.92790.94051.01341.03561.14251.12741.0593
SGI 1.06541.0741.06411.05851.04011.0331.01111.02841.02921.0274
DEPI 0.96420.9510.91350.90320.91530.93170.94790.94170.90050.8753
SGAI 0.98260.97740.97050.96170.97480.98391.01361.0231.03151.0347
LVGI 0.97571.11230.99390.90230.96010.870.95631.06251.06710.9994
TATA -0.0613-0.0577-0.0461-0.0315-0.0508-0.0392-0.0298-0.0338-0.0193-0.0115
M-score -2.74-2.75-2.62-2.47-2.72-2.60-2.64-2.59-2.47-2.36
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