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Usana Health Sciences Inc (NYSE:USNA)
Beneish M-Score
-2.55 (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.

Usana Health Sciences Inc has a M-score of -2.55 suggests that the company is not a manipulator.

USNA' s 10-Year Beneish M-Score Range
Min: -10000000   Max: 10000000
Current: -2.55

-10000000
10000000

During the past 13 years, the highest Beneish M-Score of Usana Health Sciences Inc was 10000000.00. The lowest was -10000000.00. And the median was -2.69.


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 Usana Health Sciences 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+0.528 * 1.0074+0.404 * 0.9903+0.892 * 1.0559+0.115 * 1.129
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0194+4.679 * -0.0272-0.327 * 1.0013
=-2.55

* 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 $0.0 Mil.
Revenue was 188.256 + 182.401 + 186.266 + 173.691 = $730.6 Mil.
Gross Profit was 153.391 + 148.573 + 152.488 + 142.2 = $596.7 Mil.
Total Current Assets was $201.9 Mil.
Total Assets was $354.9 Mil.
Property, Plant and Equipment(Net PPE) was $65.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $8.8 Mil.
Selling, General & Admin. Expense(SGA) was $488.7 Mil.
Total Current Liabilities was $88.7 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was 19.301 + 16.537 + 20.282 + 16.753 = $72.9 Mil.
Non Operating Income was 0.082 + -0.081 + -0.283 + -0.043 = $-0.3 Mil.
Cash Flow from Operations was 28.781 + 2.469 + 34.3 + 17.297 = $82.8 Mil.
Accounts Receivable was $0.0 Mil.
Revenue was 189.136 + 169.082 + 168.53 + 165.175 = $691.9 Mil.
Gross Profit was 157.231 + 138.821 + 138.359 + 134.832 = $569.2 Mil.
Total Current Assets was $166.0 Mil.
Total Assets was $298.9 Mil.
Property, Plant and Equipment(Net PPE) was $58.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $9.0 Mil.
Selling, General & Admin. Expense(SGA) was $454.1 Mil.
Total Current Liabilities was $74.6 Mil.
Long-Term Debt was $0.0 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)
=(0 / 730.614) / (0 / 691.923)
=0 / 0
=1

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)
=(148.573 / 691.923) / (153.391 / 730.614)
=0.82269703 / 0.81664463
=1.0074

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 - (201.925 + 65.859) / 354.921) / (1 - (166.02 + 58.796) / 298.924)
=0.24551097 / 0.24791586
=0.9903

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
=730.614 / 691.923
=1.0559

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))
=(9.047 / (9.047 + 58.796)) / (8.821 / (8.821 + 65.859))
=0.133352 / 0.1181173
=1.129

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)
=(488.745 / 730.614) / (454.063 / 691.923)
=0.66895105 / 0.65623342
=1.0194

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)
=((0 + 88.705) / 354.921) / ((0 + 74.613) / 298.924)
=0.24992886 / 0.24960525
=1.0013

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
=(72.873 - -0.325 - 82.847) / 354.921
=-0.0272

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.

Usana Health Sciences Inc has a M-score of -2.55 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.

Usana Health Sciences Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 111.23951.16540.99750.4641.7610.73551.30631.4913
GMI 1.03460.96161.00070.98620.99930.99790.97420.98821.00460.9987
AQI 1.03991.09040.7791.11971.0561.07882.79950.98170.86010.7969
SGI 1.34671.16951.15921.15881.01391.01851.18471.12421.11481.1071
DEPI 0.93290.85411.30421.66810.88050.96010.90930.98760.97880.9434
SGAI 0.9391.01061.02541.03081.10320.9961.00821.01280.96770.9849
LVGI 1.03791.13491.10481.56971.16890.52660.73510.86351.08530.9819
TATA -0.0986-0.1215-0.2012-0.1157-0.12140.003-0.1032-0.0793-0.0987-0.0523
M-score -2.61-2.94-3.15-2.80-3.10-2.76-1.31-2.96-2.64-2.26

Usana Health Sciences Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 0101.30631111.491311
GMI 0.99180.99280.99861.00461.00591.00411.00090.998711.0074
AQI 0.91920.92090.77310.86010.93780.83860.84130.79690.83980.9903
SGI 1.09291.06981.09171.11481.12021.14471.11871.10711.10221.0559
DEPI 1.03590.98681.02470.97880.95430.9390.94260.94340.97131.129
SGAI 1.00160.99750.98320.96770.9640.95710.96770.98490.99841.0194
LVGI 0.89840.96650.94171.08531.10540.9761.0230.98190.82541.0013
TATA -0.0837-0.1013-0.0695-0.0987-0.0738-0.0608-0.0492-0.0523-0.0073-0.0272
M-score -3.71-2.92-3.71-2.64-2.77-2.69-2.68-2.26-2.43-2.55
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