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Usana Health Sciences Inc (NYSE:USNA)
Beneish M-Score
-2.49 (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 -2.49 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: -2.49

-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 -2.72.


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 * 1.3205+0.528 * 1.0064+0.404 * 0.9044+0.892 * 1.0954+0.115 * 0.8669
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0167+4.679 * -0.0762-0.327 * 0.9477
=-2.49

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Dec16) TTM:Last Year (Dec15) TTM:
Accounts Receivable was $17 Mil.
Revenue was 252.901 + 254.219 + 258.514 + 240.449 = $1,006 Mil.
Gross Profit was 206.58 + 209.24 + 212.544 + 197.529 = $826 Mil.
Total Current Assets was $278 Mil.
Total Assets was $471 Mil.
Property, Plant and Equipment(Net PPE) was $101 Mil.
Depreciation, Depletion and Amortization(DDA) was $13 Mil.
Selling, General & Admin. Expense(SGA) was $687 Mil.
Total Current Liabilities was $138 Mil.
Long-Term Debt was $0 Mil.
Net Income was 21.882 + 30.098 + 25.762 + 22.299 = $100 Mil.
Non Operating Income was -0.422 + -0.024 + 0.072 + -0.732 = $-1 Mil.
Cash Flow from Operations was 55.29 + 33.763 + 34.506 + 13.471 = $137 Mil.
Accounts Receivable was $12 Mil.
Revenue was 232.585 + 233.292 + 233.244 + 219.378 = $918 Mil.
Gross Profit was 192.404 + 192.244 + 193.155 + 181.014 = $759 Mil.
Total Current Assets was $244 Mil.
Total Assets was $423 Mil.
Property, Plant and Equipment(Net PPE) was $88 Mil.
Depreciation, Depletion and Amortization(DDA) was $10 Mil.
Selling, General & Admin. Expense(SGA) was $617 Mil.
Total Current Liabilities was $131 Mil.
Long-Term Debt was $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)
=(17.044 / 1006.083) / (11.784 / 918.499)
=0.01694095 / 0.01282963
=1.3205

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)
=(758.817 / 918.499) / (825.893 / 1006.083)
=0.82614897 / 0.82089947
=1.0064

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 - (277.861 + 101.267) / 470.642) / (1 - (244.264 + 87.982) / 423.237)
=0.19444503 / 0.21498829
=0.9044

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
=1006.083 / 918.499
=1.0954

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))
=(9.978 / (9.978 + 87.982)) / (13.482 / (13.482 + 101.267))
=0.1018579 / 0.11749122
=0.8669

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)
=(687.271 / 1006.083) / (617.155 / 918.499)
=0.68311561 / 0.6719169
=1.0167

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 + 138.491) / 470.642) / ((0 + 131.412) / 423.237)
=0.29425976 / 0.3104927
=0.9477

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
=(100.041 - -1.106 - 137.03) / 470.642
=-0.0762

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 -2.49 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 local exchange's currency.

Usana Health Sciences Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
DSRI 1.16540.99750.4641.7610.73551.30631.49130.73650.91981.3205
GMI 0.98620.99930.99790.97420.98821.00460.99871.00080.99481.0064
AQI 1.11971.0561.07882.79950.98170.86010.79691.1590.85170.9044
SGI 1.15881.01391.01851.18471.12421.11481.10711.10071.1621.0954
DEPI 1.66810.88050.96010.90930.98760.97880.94341.20341.08150.8669
SGAI 1.03081.10320.9961.00821.01280.96770.98491.02270.99541.0167
LVGI 1.56971.16890.52660.73510.86351.08530.98191.19171.00140.9477
TATA -0.1157-0.12140.003-0.1032-0.0793-0.0987-0.0523-0.0791-0.0393-0.0762
M-score -2.80-3.10-2.76-1.31-2.96-2.64-2.26-2.98-2.65-2.49

Usana Health Sciences Inc Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
DSRI 10.73651110.91981111.3205
GMI 1.00761.00080.99580.9870.98650.99480.9991.00461.00571.0064
AQI 1.23181.1591.03570.89490.74230.85170.90251.0341.00040.9044
SGI 1.06911.10071.13121.19411.22021.1621.13551.10591.07881.0954
DEPI 1.10921.20341.21631.08511.10141.08151.02880.96090.98780.8669
SGAI 1.01351.02271.02271.01341.01360.99540.98830.99481.00531.0167
LVGI 1.33591.19171.36721.10540.78371.00141.40721.13081.11020.9477
TATA -0.0804-0.0791-0.122-0.081-0.0446-0.0393-0.0073-0.0369-0.0359-0.0762
M-score -2.80-2.98-3.02-2.76-2.52-2.65-2.56-2.59-2.61-2.49
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