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Nutraceutical International Corp (NAS:NUTR)
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.

Nutraceutical International Corp has a M-score of -2.69 suggests that the company is not a manipulator.

NUTR' s 10-Year Beneish M-Score Range
Min: -6.06   Max: -2.31
Current: -2.69

-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 -2.72.


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 * 0.9538+0.528 * 1.0152+0.404 * 0.9624+0.892 * 1.0093+0.115 * 0.8541
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0162+4.679 * -0.0437-0.327 * 0.8175
=-2.69

* 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 $14.2 Mil.
Revenue was 54.382 + 55.404 + 53.044 + 52.44 = $215.3 Mil.
Gross Profit was 26.427 + 27.255 + 25.855 + 25.931 = $105.5 Mil.
Total Current Assets was $82.4 Mil.
Total Assets was $210.9 Mil.
Property, Plant and Equipment(Net PPE) was $78.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $12.8 Mil.
Selling, General & Admin. Expense(SGA) was $77.7 Mil.
Total Current Liabilities was $20.1 Mil.
Long-Term Debt was $32.0 Mil.
Net Income was 4.45 + 4.096 + 3.351 + 3.433 = $15.3 Mil.
Non Operating Income was 0 + -0.546 + 0 + 0 = $-0.5 Mil.
Cash Flow from Operations was 10.015 + 8.161 + 3.007 + 3.913 = $25.1 Mil.
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.



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)
=(14.186 / 215.27) / (14.737 / 213.29)
=0.06589864 / 0.06909372
=0.9538

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)
=(27.255 / 213.29) / (26.427 / 215.27)
=0.49736509 / 0.48993357
=1.0152

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 - (82.425 + 78.35) / 210.905) / (1 - (80.053 + 79.337) / 211.669)
=0.23768996 / 0.24698468
=0.9624

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
=215.27 / 213.29
=1.0093

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))
=(10.823 / (10.823 + 79.337)) / (12.813 / (12.813 + 78.35))
=0.12004215 / 0.14055044
=0.8541

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)
=(77.653 / 215.27) / (75.714 / 213.29)
=0.36072374 / 0.35498148
=1.0162

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)
=((32 + 20.07) / 210.905) / ((41.5 + 22.427) / 211.669)
=0.24688841 / 0.30201399
=0.8175

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
=(15.33 - -0.546 - 25.096) / 210.905
=-0.0437

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 -2.69 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.

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

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 1.0211.11120.9690.98920.95361.00171.07251.14781.09070.9538
GMI 1.00741.00921.01050.9940.99340.99030.9961.01491.01521.0152
AQI 0.99720.92790.94051.01341.03561.14251.12741.05931.04060.9624
SGI 1.06411.05851.04011.0331.01111.02841.02921.02741.03851.0093
DEPI 0.91350.90320.91530.93170.94790.94170.90050.87530.84770.8541
SGAI 0.97050.96170.97480.98391.01361.0231.03151.03471.02161.0162
LVGI 0.99390.90230.96010.870.95631.06251.06710.99940.95240.8175
TATA -0.0461-0.0315-0.0508-0.0392-0.0264-0.0305-0.0161-0.0082-0.0235-0.0437
M-score -2.62-2.47-2.72-2.60-2.62-2.57-2.45-2.35-2.45-2.69
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