Switch to:
Usana Health Sciences Inc (NYSE:USNA)
Beneish M-Score
-2.65 (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 -2.65 suggests that the company is not a manipulator.

USNA' s Beneish M-Score Range Over the Past 10 Years
Min: -10000000   Max: -1.31
Current: -2.65

-10000000
-1.31

During the past 13 years, the highest Beneish M-Score of Usana Health Sciences Inc was -1.31. The lowest was -10000000.00. And the median was -2.76.


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 * 0.9198+0.528 * 0.9948+0.404 * 0.8517+0.892 * 1.162+0.115 * 1.0815
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9954+4.679 * -0.0393-0.327 * 1.0014
=-2.65

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

This Year (Dec15) TTM:Last Year (Dec14) TTM:
Accounts Receivable was $11.8 Mil.
Revenue was 232.585 + 233.292 + 233.244 + 219.378 = $918.5 Mil.
Gross Profit was 192.404 + 192.244 + 193.155 + 181.014 = $758.8 Mil.
Total Current Assets was $244.3 Mil.
Total Assets was $423.2 Mil.
Property, Plant and Equipment(Net PPE) was $88.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $10.0 Mil.
Selling, General & Admin. Expense(SGA) was $617.2 Mil.
Total Current Liabilities was $131.4 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was 23.967 + 25.609 + 25.416 + 19.68 = $94.7 Mil.
Non Operating Income was 0.045 + 0.078 + -0.311 + 0.014 = $-0.2 Mil.
Cash Flow from Operations was 36.949 + 28.35 + 22.606 + 23.561 = $111.5 Mil.
Accounts Receivable was $11.0 Mil.
Revenue was 227.87 + 191.944 + 188.256 + 182.401 = $790.5 Mil.
Gross Profit was 190.354 + 157.359 + 153.391 + 148.573 = $649.7 Mil.
Total Current Assets was $190.9 Mil.
Total Assets was $350.6 Mil.
Property, Plant and Equipment(Net PPE) was $71.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $8.8 Mil.
Selling, General & Admin. Expense(SGA) was $533.6 Mil.
Total Current Liabilities was $108.7 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)
=(11.784 / 918.499) / (11.026 / 790.471)
=0.01282963 / 0.01394865
=0.9198

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)
=(192.244 / 790.471) / (192.404 / 918.499)
=0.82188594 / 0.82614897
=0.9948

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 - (244.264 + 87.982) / 423.237) / (1 - (190.927 + 71.164) / 350.584)
=0.21498829 / 0.25241597
=0.8517

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
=918.499 / 790.471
=1.162

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))
=(8.81 / (8.81 + 71.164)) / (9.978 / (9.978 + 87.982))
=0.1101608 / 0.1018579
=1.0815

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)
=(617.155 / 918.499) / (533.575 / 790.471)
=0.6719169 / 0.67500895
=0.9954

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 + 131.412) / 423.237) / ((0 + 108.705) / 350.584)
=0.3104927 / 0.31006834
=1.0014

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
=(94.672 - -0.174 - 111.466) / 423.237
=-0.0393

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 -2.65 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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.23951.16540.99750.4641.7610.73551.30631.49130.73650.9198
GMI 1.00070.98620.99930.99790.97420.98821.00460.99871.00080.9948
AQI 0.7791.11971.0561.07882.79950.98170.86010.79691.1590.8517
SGI 1.15921.15881.01391.01851.18471.12421.11481.10711.10071.162
DEPI 1.30421.66810.88050.96010.90930.98760.97880.94341.20341.0815
SGAI 1.02541.03081.10320.9961.00821.01280.96770.98491.02270.9954
LVGI 1.10481.56971.16890.52660.73510.86351.08530.98191.19171.0014
TATA -0.2012-0.1157-0.12140.003-0.1032-0.0793-0.0987-0.0523-0.0791-0.0393
M-score -3.15-2.80-3.10-2.76-1.31-2.96-2.64-2.26-2.98-2.65

Usana Health Sciences Inc Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 11.49131110.73651110.9198
GMI 1.00090.998711.00741.00761.00080.99580.9870.98650.9948
AQI 0.84130.79690.83980.99031.23181.1591.03570.89490.74230.8517
SGI 1.11871.10711.10221.05591.06911.10071.13121.19411.22021.162
DEPI 0.94260.94340.97131.1291.10921.20341.21631.08511.10141.0815
SGAI 0.96770.98490.99841.01941.01351.02271.02271.01341.01360.9954
LVGI 1.0230.98190.82541.00131.33591.19171.36721.10540.78371.0014
TATA -0.0492-0.0523-0.0073-0.0272-0.0804-0.0791-0.122-0.081-0.0446-0.0393
M-score -2.68-2.26-2.43-2.55-2.80-2.98-3.02-2.76-2.52-2.65
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GuruFocus Premium Plus Membership

FEEDBACK