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Usana Health Sciences Inc (NYSE:USNA)
Beneish M-Score
-2.87 (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 -2.87 suggests that the company is not a manipulator.

USNA' s 10-Year Beneish M-Score Range
Min: -10000000   Max: -1.31
Current: -2.87

-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 -2.79.


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 * 0.8602+0.528 * 1.0008+0.404 * 1.159+0.892 * 1.1007+0.115 * 1.2034
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0227+4.679 * -0.0791-0.327 * 1.1917
=-2.87

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
Accounts Receivable was $12.9 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.
Net Income was 21.3 + 19.498 + 19.301 + 16.537 = $76.6 Mil.
Non Operating Income was -0.521 + -0.3 + 0.082 + -0.081 = $-0.8 Mil.
Cash Flow from Operations was 37.79 + 36.145 + 28.781 + 2.469 = $105.2 Mil.
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.



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)
=(12.878 / 790.471) / (13.602 / 718.175)
=0.01629155 / 0.01893967
=0.8602

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)
=(157.359 / 718.175) / (190.354 / 790.471)
=0.82255718 / 0.82188594
=1.0008

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 - (190.927 + 71.164) / 350.584) / (1 - (229.045 + 59.18) / 368.47)
=0.25241597 / 0.21777892
=1.159

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
=790.471 / 718.175
=1.1007

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))
=(9.044 / (9.044 + 59.18)) / (8.81 / (8.81 + 71.164))
=0.13256332 / 0.1101608
=1.2034

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)
=(533.575 / 790.471) / (474.028 / 718.175)
=0.67500895 / 0.66004525
=1.0227

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 + 108.705) / 350.584) / ((0 + 95.871) / 368.47)
=0.31006834 / 0.26018672
=1.1917

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
=(76.636 - -0.82 - 105.185) / 350.584
=-0.0791

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 -2.87 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 11.23951.16540.99750.4641.7610.73551.30631.49130.8602
GMI 0.96161.00070.98620.99930.99790.97420.98821.00460.99871.0008
AQI 1.09040.7791.11971.0561.07882.79950.98170.86010.79691.159
SGI 1.16951.15921.15881.01391.01851.18471.12421.11481.10711.1007
DEPI 0.85411.30421.66810.88050.96010.90930.98760.97880.94341.2034
SGAI 1.01061.02541.03081.10320.9961.00821.01280.96770.98491.0227
LVGI 1.13491.10481.56971.16890.52660.73510.86351.08530.98191.1917
TATA -0.1215-0.2012-0.1157-0.12140.003-0.1032-0.0793-0.0987-0.0523-0.0791
M-score -2.94-3.15-2.80-3.10-2.76-1.31-2.96-2.64-2.26-2.87

Usana Health Sciences Inc Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 01.30631111.49131110.8602
GMI 0.99861.00461.00591.00411.00090.998711.00741.00761.0008
AQI 0.77310.86010.93780.83860.84130.79690.83980.99031.23181.159
SGI 1.09171.11481.12021.14471.11871.10711.10221.05591.06911.1007
DEPI 1.02470.97880.95430.9390.94260.94340.97131.1291.10921.2034
SGAI 0.98320.96770.9640.95710.96770.98490.99841.01941.01351.0227
LVGI 0.94171.08531.10540.9761.0230.98190.82541.00131.33591.1917
TATA -0.0695-0.0987-0.0738-0.0608-0.0492-0.0523-0.0073-0.0272-0.0804-0.0791
M-score -3.71-2.64-2.77-2.69-2.68-2.26-2.43-2.55-2.80-2.87
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