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Usana Health Sciences Inc (NYSE:USNA)
Beneish M-Score
-2.80 (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 -2.80 suggests that the company is not a manipulator.

USNA' s 10-Year Beneish M-Score Range
Min: -4.11   Max: 10000000
Current: -2.8

-4.11
10000000

During the past 13 years, the highest Beneish M-Score of Usana Health Sciences Inc was 10000000.00. The lowest was -4.11. 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 * 1.0076+0.404 * 1.2318+0.892 * 1.0691+0.115 * 1.1092
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0135+4.679 * -0.0804-0.327 * 1.3359
=-2.80

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $0.0 Mil.
Revenue was 191.944 + 188.256 + 182.401 + 186.266 = $748.9 Mil.
Gross Profit was 157.359 + 153.391 + 148.573 + 152.488 = $611.8 Mil.
Total Current Assets was $162.5 Mil.
Total Assets was $316.9 Mil.
Property, Plant and Equipment(Net PPE) was $66.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $8.9 Mil.
Selling, General & Admin. Expense(SGA) was $499.3 Mil.
Total Current Liabilities was $105.5 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was 19.498 + 19.301 + 16.537 + 20.282 = $75.6 Mil.
Non Operating Income was -0.3 + 0.082 + -0.081 + -0.283 = $-0.6 Mil.
Cash Flow from Operations was 36.145 + 28.781 + 2.469 + 34.3 = $101.7 Mil.
Accounts Receivable was $0.0 Mil.
Revenue was 173.691 + 189.136 + 169.082 + 168.53 = $700.4 Mil.
Gross Profit was 142.2 + 157.231 + 138.821 + 138.359 = $576.6 Mil.
Total Current Assets was $196.1 Mil.
Total Assets was $331.3 Mil.
Property, Plant and Equipment(Net PPE) was $60.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $9.1 Mil.
Selling, General & Admin. Expense(SGA) was $460.8 Mil.
Total Current Liabilities was $82.5 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 / 748.867) / (0 / 700.439)
=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)
=(153.391 / 700.439) / (157.359 / 748.867)
=0.82321373 / 0.81698219
=1.0076

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 - (162.512 + 66.31) / 316.93) / (1 - (196.125 + 60.432) / 331.333)
=0.27800461 / 0.22568232
=1.2318

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
=748.867 / 700.439
=1.0691

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))
=(9.088 / (9.088 + 60.432)) / (8.859 / (8.859 + 66.31))
=0.13072497 / 0.11785443
=1.1092

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)
=(499.343 / 748.867) / (460.821 / 700.439)
=0.66679798 / 0.65790312
=1.0135

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 + 105.463) / 316.93) / ((0 + 82.535) / 331.333)
=0.33276433 / 0.24909985
=1.3359

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
=(75.618 - -0.582 - 101.695) / 316.93
=-0.0804

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 -2.80 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 1111.19420.99750.4641.7610.73551.30631.4913
GMI 1.03020.9911.00170.96010.99930.99790.97420.98821.00460.9987
AQI 1.03991.09040.7791.11971.0561.07882.79950.98170.86010.7969
SGI 1.3641.20131.14171.13081.01391.01851.18471.12421.11481.1071
DEPI 0.93290.85411.30421.66810.88050.96010.90930.98760.97880.9434
SGAI 0.94780.98881.01531.05421.10320.9961.00821.01280.96770.9849
LVGI 1.03791.13491.10481.56971.16890.52660.73510.86351.08530.9819
TATA -0.0986-0.1216-0.2012-0.1157-0.12140.003-0.1032-0.0793-0.0987-0.0523
M-score -2.60-2.90-3.39-2.82-3.10-2.76-1.31-2.96-2.64-2.26

Usana Health Sciences Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 101.30631111.4913111
GMI 0.99280.99861.00461.00591.00411.00090.998711.00741.0076
AQI 0.92090.77310.86010.93780.83860.84130.79690.83980.99031.2318
SGI 1.06981.09171.11481.12021.14471.11871.10711.10221.05591.0691
DEPI 0.98681.02470.97880.95430.9390.94260.94340.97131.1291.1092
SGAI 0.99750.98320.96770.9640.95710.96770.98490.99841.01941.0135
LVGI 0.96650.94171.08531.10540.9761.0230.98190.82541.00131.3359
TATA -0.1013-0.0695-0.0987-0.0738-0.0608-0.0492-0.0523-0.0073-0.0272-0.0804
M-score -2.92-3.71-2.64-2.77-2.69-2.68-2.26-2.43-2.55-2.80
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