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Usana Health Sciences Inc (NYSE:USNA)
Beneish M-Score
-2.52 (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 -2.52 suggests that the company is not a manipulator.

USNA' s Beneish M-Score Range Over the Past 10 Years
Min: -10000000   Max: 10000000
Current: -2.52

-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 -2.74.


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 * 0.9865+0.404 * 0.7423+0.892 * 1.2202+0.115 * 1.1014
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0136+4.679 * -0.0446-0.327 * 0.7837
=-2.52

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $0.0 Mil.
Revenue was 233.292 + 233.244 + 219.378 + 227.87 = $913.8 Mil.
Gross Profit was 192.244 + 193.155 + 181.014 + 190.354 = $756.8 Mil.
Total Current Assets was $269.8 Mil.
Total Assets was $438.9 Mil.
Property, Plant and Equipment(Net PPE) was $78.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $9.4 Mil.
Selling, General & Admin. Expense(SGA) was $617.6 Mil.
Total Current Liabilities was $114.5 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was 25.609 + 25.416 + 19.68 + 21.3 = $92.0 Mil.
Non Operating Income was 0.078 + -0.311 + 0.014 + -0.521 = $-0.7 Mil.
Cash Flow from Operations was 28.35 + 22.606 + 23.561 + 37.79 = $112.3 Mil.
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.



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 / 913.784) / (0 / 748.867)
=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)
=(193.155 / 748.867) / (192.244 / 913.784)
=0.81698219 / 0.82816836
=0.9865

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 - (269.824 + 78.525) / 438.928) / (1 - (162.512 + 66.31) / 316.93)
=0.20636414 / 0.27800461
=0.7423

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
=913.784 / 748.867
=1.2202

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))
=(8.859 / (8.859 + 66.31)) / (9.409 / (9.409 + 78.525))
=0.11785443 / 0.10700071
=1.1014

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)
=(617.604 / 913.784) / (499.343 / 748.867)
=0.67587526 / 0.66679798
=1.0136

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 + 114.465) / 438.928) / ((0 + 105.463) / 316.93)
=0.26078309 / 0.33276433
=0.7837

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
=(92.005 - -0.74 - 112.307) / 438.928
=-0.0446

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 -2.52 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

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
DSRI 111.49131110.8602111
GMI 1.00411.00090.998711.00741.00761.00080.99580.9870.9865
AQI 0.83860.84130.79690.83980.99031.23181.1591.03570.89490.7423
SGI 1.14471.11871.10711.10221.05591.06911.10071.13121.19411.2202
DEPI 0.9390.94260.94340.97131.1291.10921.20341.21631.08511.1014
SGAI 0.95710.96770.98490.99841.01941.01351.02271.02271.01341.0136
LVGI 0.9761.0230.98190.82541.00131.33591.19171.36721.10540.7837
TATA -0.0608-0.0492-0.0523-0.0073-0.0272-0.0804-0.0791-0.122-0.081-0.0446
M-score -2.69-2.68-2.26-2.43-2.55-2.80-2.87-3.02-2.76-2.52
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