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Herbalife Nutrition Beneish M-Score

: -2.37 (As of Today)
View and export this data going back to 2004. Start your Free Trial

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.37 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Herbalife Nutrition's Beneish M-Score or its related term are showing as below:

NYSE:HLF' s Beneish M-Score Range Over the Past 10 Years
Min: -3.34   Med: -2.66   Max: 0.86
Current: -2.37

-3.34
0.86

During the past 13 years, the highest Beneish M-Score of Herbalife Nutrition was 0.86. The lowest was -3.34. And the median was -2.66.


Herbalife Nutrition Beneish M-Score Historical Data

The historical data trend for Herbalife Nutrition's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Herbalife Nutrition Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.55 -2.92 -3.23 -2.53 -2.86

Herbalife Nutrition Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
Beneish M-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -3.01 -2.98 -2.86 -2.46 -2.37

Competitive Comparison

For the Packaged Foods subindustry, Herbalife Nutrition's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Herbalife Nutrition Beneish M-Score Distribution

For the Consumer Packaged Goods industry and Consumer Defensive sector, Herbalife Nutrition's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Herbalife Nutrition's Beneish M-Score falls into.



Herbalife Nutrition Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski 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 Herbalife Nutrition 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 * 0.8596+0.528 * 1.0211+0.404 * 1.3537+0.892 * 1.1798+0.115 * 1.0714
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8476+4.679 * -0.0008-0.327 * 1.3255
=-2.37

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Jun21) TTM:Last Year (Jun20) TTM:
Accounts Receivable was $107 Mil.
Revenue was 1552.3 + 1501.6 + 1410.7 + 1521.8 = $5,986 Mil.
Gross Profit was 1229.1 + 1187.3 + 1101.3 + 1199.1 = $4,717 Mil.
Total Current Assets was $1,652 Mil.
Total Assets was $2,967 Mil.
Property, Plant and Equipment(Net PPE) was $628 Mil.
Depreciation, Depletion and Amortization(DDA) was $104 Mil.
Selling, General, & Admin. Expense(SGA) was $2,058 Mil.
Total Current Liabilities was $1,088 Mil.
Long-Term Debt & Capital Lease Obligation was $2,963 Mil.
Net Income was 144.2 + 147.4 + 73.8 + 138.1 = $504 Mil.
Non Operating Income was -24.6 + 0 + 0 + 0 = $-25 Mil.
Cash Flow from Operations was 176.8 + 110.1 + 112.5 + 131.1 = $531 Mil.
Accounts Receivable was $106 Mil.
Revenue was 1346.9 + 1262.4 + 1220.3 + 1244.5 = $5,074 Mil.
Gross Profit was 1074.1 + 1016.7 + 990.5 + 1001.1 = $4,082 Mil.
Total Current Assets was $2,408 Mil.
Total Assets was $3,567 Mil.
Property, Plant and Equipment(Net PPE) was $549 Mil.
Depreciation, Depletion and Amortization(DDA) was $99 Mil.
Selling, General, & Admin. Expense(SGA) was $2,058 Mil.
Total Current Liabilities was $1,103 Mil.
Long-Term Debt & Capital Lease Obligation was $2,572 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Accounts Receivable 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)
=(107.4 / 5986.4) / (105.9 / 5074.1)
=0.01794067 / 0.0208707
=0.8596

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)
=(4082.4 / 5074.1) / (4716.8 / 5986.4)
=0.80455647 / 0.78791928
=1.0211

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 Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (1652.2 + 627.7) / 2966.7) / (1 - (2407.9 + 549.4) / 3567.4)
=0.23150302 / 0.17102091
=1.3537

4. SGI = Sales Growth Index

Ratio of Revenue 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
=5986.4 / 5074.1
=1.1798

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization 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))
=(98.6 / (98.6 + 549.4)) / (103.9 / (103.9 + 627.7))
=0.15216049 / 0.1420175
=1.0714

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales 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)
=(2057.8 / 5986.4) / (2057.7 / 5074.1)
=0.34374582 / 0.40553004
=0.8476

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 in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((2962.9 + 1088.2) / 2966.7) / ((2572.2 + 1103) / 3567.4)
=1.36552398 / 1.03021809
=1.3255

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
=(503.5 - -24.6 - 530.5) / 2966.7
=-0.0008

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Herbalife Nutrition has a M-score of -2.37 suggests that the company is unlikely to be a manipulator.


Herbalife Nutrition Beneish M-Score Related Terms

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Herbalife Nutrition Business Description

Herbalife Nutrition logo
Industry
Traded in Other Exchanges
Address
Ugland House, South Church Street, P.O. Box 309GT, Grand Cayman, CYM
Herbalife Nutrition Ltd is an international nutrition company. The company has five revenue segments: weight management; targeted nutrition; energy, sports, and fitness; outer nutrition; and literature, promotional, and other. The most important segment, weight management, contributing more than 50% of revenue, has as representative products protein drinks, powder, and bars, and herbal tea concentrates, among others. The targeted nutrition segment offers dietary and nutritional supplements rich in herbs, minerals, and vitamins. Energy, sports, and fitness offers energy drinks, while outer nutrition offers facial skin-care, body-care, and hair-care products. Geographically, the main segments are North America, Mexico, South and Central America, EMEA, Asia-Pacific, and China.
Executives
Nelson James Larry director 2747 PARADISE ROAD PH2804 LAS VEGAS NV 89109
Carmona Richard H director 1221 BROADWAY OAKLAND CA 94612
Icahn Carl C 10 percent owner C/O ICAHN ENTERPRISES L.P. 16690 COLLINS AVE., PH-1 SUNNY ISLES BEACH FL 33160
Icahn Partners Lp 10 percent owner 16690 COLLINS AVE. PH SUNNY ISLES FL 33160
Icahn Partners Master Fund Lp 10 percent owner 16690 COLLINS AVE. PH SUNNY ISLES FL 33160
Desimone John officer: President 800 W. OLYMPIC BLVD., SUITE 406 LOS ANGELES CA 90015
Irani Jehangir D officer: SVP, PAO 800 WEST OLYMPIC BLVD. SUITE 406 LOS ANGELES CA 90015
Harms Thomas officer: SVP, China & APAC 800 W. OLYMPIC BLVD., SUITE 406 LOS ANGELES CA 90015
Tartol John director C/O HERBALIFE INTERNATIONAL, INC. 1800 CENTURY PARK EAST LOS ANGELES CA 90025
Christodoro Jonathan director C/O ICAHN ENTERPRISES L.P. 16690 COLLINS AVE., PH SUNNY ISLES FL 33160
Graziano Nick director C/O ICAHN ENTERPRISES L.P. 16690 COLLINS AVE., PH SUNNY ISLES FL 33160
Palau Hernandez Margarita director 300 N. SAN RAFAEL AVE. PASADENA CA 91105
Montelongo Michael director 203 EAST MAIN STREET SPARTANBURG SC 29319
Gary Hunter Clark director C/O ICAHN ENTERPRISES L.P. 16690 COLLINS AVE., PH SUNNY ISLES FL 33160
Otero Maria director 800 W OLYMPIC BLVD SUITE 406 LOS ANGELES CA 90015

Herbalife Nutrition Headlines

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