Switch to:
Usana Health Sciences, Inc. (NYSE:USNA)
Beneish M-Score
-2.26 (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 -2.26 suggests that the company is not a manipulator.

USNA' s 10-Year Beneish M-Score Range
Min: -10000000   Max: -1.31
Current: -2.26

-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 * 1.4913+0.528 * 0.9987+0.404 * 0.7969+0.892 * 1.1071+0.115 * 0.9434
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9849+4.679 * -0.0523-0.327 * 0.9819
=-2.26

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

This Year (Dec13) TTM:Last Year (Dec12) TTM:
Accounts Receivable was $13.6 Mil.
Revenue was 186.266 + 173.691 + 189.136 + 169.082 = $718.2 Mil.
Gross Profit was 152.488 + 142.2 + 157.231 + 138.821 = $590.7 Mil.
Total Current Assets was $229.0 Mil.
Total Assets was $368.5 Mil.
Property, Plant and Equipment(Net PPE) was $59.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $9.0 Mil.
Selling, General & Admin. Expense(SGA) was $474.0 Mil.
Total Current Liabilities was $95.9 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was 20.282 + 16.753 + 24.21 + 17.779 = $79.0 Mil.
Non Operating Income was -0.283 + -0.043 + -0.164 + -0.104 = $-0.6 Mil.
Cash Flow from Operations was 34.3 + 17.297 + 26.991 + 20.305 = $98.9 Mil.
Accounts Receivable was $8.2 Mil.
Revenue was 168.53 + 165.175 + 160.901 + 154.12 = $648.7 Mil.
Gross Profit was 138.359 + 134.832 + 132.828 + 126.903 = $532.9 Mil.
Total Current Assets was $132.5 Mil.
Total Assets was $267.4 Mil.
Property, Plant and Equipment(Net PPE) was $61.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $8.8 Mil.
Selling, General & Admin. Expense(SGA) was $434.7 Mil.
Total Current Liabilities was $70.8 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)
=(13.602 / 718.175) / (8.239 / 648.726)
=0.01893967 / 0.01270028
=1.4913

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)
=(142.2 / 648.726) / (152.488 / 718.175)
=0.82149012 / 0.82255718
=0.9987

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 - (229.045 + 59.18) / 368.47) / (1 - (132.545 + 61.751) / 267.355)
=0.21777892 / 0.27326588
=0.7969

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
=718.175 / 648.726
=1.1071

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))
=(8.826 / (8.826 + 61.751)) / (9.044 / (9.044 + 59.18))
=0.1250549 / 0.13256332
=0.9434

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)
=(474.028 / 718.175) / (434.743 / 648.726)
=0.66004525 / 0.67014888
=0.9849

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 + 95.871) / 368.47) / ((0 + 70.844) / 267.355)
=0.26018672 / 0.26498102
=0.9819

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
=(79.024 - -0.594 - 98.893) / 368.47
=-0.0523

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 -2.26 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

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DSRI 10.73550101.30631111.4913
GMI 0.98430.98820.99180.99280.99861.00461.00591.00411.00090.9987
AQI 1.00050.98170.91920.92090.77310.86010.93780.83860.84130.7969
SGI 1.15421.12421.09291.06981.09171.11481.12021.14471.11871.1071
DEPI 0.89140.98761.03590.98681.02470.97880.95430.9390.94260.9434
SGAI 1.01971.01281.00160.99750.98320.96770.9640.95710.96770.9849
LVGI 0.73910.86350.89840.96650.94171.08531.10540.9761.0230.9819
TATA -0.1035-0.0793-0.0837-0.1013-0.0695-0.0987-0.0738-0.0608-0.0492-0.0523
M-score -2.77-2.96-3.71-2.92-3.71-2.64-2.77-2.69-2.68-2.26
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)
Free 7-day Trial
FEEDBACK
Hide