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Herbalife Nutrition Beneish M-Score

: -2.78 (As of Today)
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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 -2.78 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:

HLF' s Beneish M-Score Range Over the Past 10 Years
Min: -3.34   Med: -2.66   Max: 0.88
Current: -2.78

During the past 13 years, the highest Beneish M-Score of Herbalife Nutrition was 0.88. 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 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.92 -3.23 -2.53 -2.86 -2.61

Herbalife Nutrition Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
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 -2.37 -2.57 -2.61 -2.72 -2.78

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 * 0.8487+0.528 * 1.0148+0.404 * 1.0703+0.892 * 0.915+0.115 * 0.9965
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0221+4.679 * -0.0223-0.327 * 1.0534
=-2.78

* 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 (Jun22) TTM:Last Year (Jun21) TTM:
Total Receivables was $83 Mil.
Revenue was 1392.7 + 1335.8 + 1318 + 1430.9 = $5,477 Mil.
Gross Profit was 1076.9 + 1028.7 + 1021.4 + 1125.7 = $4,253 Mil.
Total Current Assets was $1,430 Mil.
Total Assets was $2,803 Mil.
Property, Plant and Equipment(Net PPE) was $678 Mil.
Depreciation, Depletion and Amortization(DDA) was $113 Mil.
Selling, General, & Admin. Expense(SGA) was $1,924 Mil.
Total Current Liabilities was $1,054 Mil.
Long-Term Debt & Capital Lease Obligation was $2,977 Mil.
Net Income was 86.5 + 98.2 + 38.2 + 117.4 = $340 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 98.8 + 130.5 + 85.4 + 88 = $403 Mil.
Total Receivables 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.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total 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)
=(83.4 / 5477.4) / (107.4 / 5986.4)
=0.0152262 / 0.01794067
=0.8487

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)
=(4716.8 / 5986.4) / (4252.7 / 5477.4)
=0.78791928 / 0.77640851
=1.0148

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 - (1430 + 678.1) / 2802.5) / (1 - (1652.2 + 627.7) / 2966.7)
=0.24777877 / 0.23150302
=1.0703

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
=5477.4 / 5986.4
=0.915

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))
=(103.9 / (103.9 + 627.7)) / (112.7 / (112.7 + 678.1))
=0.1420175 / 0.14251391
=0.9965

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)
=(1924.4 / 5477.4) / (2057.8 / 5986.4)
=0.35133457 / 0.34374582
=1.0221

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)
=((2977 + 1054.3) / 2802.5) / ((2962.9 + 1088.2) / 2966.7)
=1.43846566 / 1.36552398
=1.0534

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
=(340.3 - 0 - 402.7) / 2802.5
=-0.0223

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 -2.78 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
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
Del Genes Celine director 800 WEST OLYMPIC BLVD., SUITE 406 LOS ANGELES CA 90015
Mulligan Donal L director ONE GENERAL MILLS BLVD MINNEAPOLIS MN 55426
Jones Kevin M. director 1 FANATICAL PLACE CITY OF WINDCREST SAN ANTONIO TX 78218
L'helias Sophie director 800 WEST OLYMPIC BLVD., SUITE 406 LOS ANGELES CA 90015
Irani Jehangir D officer: Principal Accounting Officer 800 WEST OLYMPIC BLVD. SUITE 406 LOS ANGELES CA 90015
Agwunobi John O officer: Co-President/Chief H&N Officer 4800 NORTH SCOTTSDALE ROAD SCOTTSDALE AZ 85251
Wang Henry C officer: EVP, General Counsel 800 W. OLYMPIC BLVD. SUITE 406 LOS ANGELES CA 90015
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
Lefevre Alan W director HERBALIFE NUTRITION 800 W. OLYMPIC BLVD. SUITE 406 LOS ANGELES CA 90015
Mendoza Juan Miguel director 800 W. OLYMPIC BLVD. SUITE 406 LOS ANGELES CA 90015
Guo Woody officer: SVP, Managing Director, China 800 W. OLYMPIC BLVD., SUITE #406 LOS ANGELES CA 90015
Amezquita Alexander officer: SVP, Finance & Strat. Planning 800 W. OLYMPIC BLVD., SUITE 406 LOS ANGELES CA 90015
Harms Thomas officer: SVP, China & APAC 800 W. OLYMPIC BLVD., SUITE 406 LOS ANGELES CA 90015
Schissel Mark J officer: EVP, WW Operations 800 W. OLYMPIC BLVD., SUITE 406 LOS ANGELES CA 90015

Herbalife Nutrition Headlines

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