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Axcelis Technologies, Inc. (NAS:ACLS)
Beneish M-Score
-2.19 (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.

Axcelis Technologies, Inc. has a M-score of -2.19 signals that the company is a manipulator.

ACLS' s 10-Year Beneish M-Score Range
Min: -4.53   Max: -1.75
Current: -2.19

-4.53
-1.75

During the past 13 years, the highest Beneish M-Score of Axcelis Technologies, Inc. was -1.75. The lowest was -4.53. And the median was -2.51.


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 Axcelis Technologies, 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 * 1.5311+0.528 * 0.8236+0.404 * 1.2639+0.892 * 0.9619+0.115 * 1.2169
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9243+4.679 * -0.0041-0.327 * 1.5966
=-2.19

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

This Year (Dec13) TTM:Last Year (Dec12) TTM:
Accounts Receivable was $36.6 Mil.
Revenue was 58.574 + 48.831 + 47.501 + 40.726 = $195.6 Mil.
Gross Profit was 21.28 + 16.976 + 16.737 + 12.943 = $67.9 Mil.
Total Current Assets was $184.9 Mil.
Total Assets was $233.5 Mil.
Property, Plant and Equipment(Net PPE) was $32.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $5.1 Mil.
Selling, General & Admin. Expense(SGA) was $46.6 Mil.
Total Current Liabilities was $35.5 Mil.
Long-Term Debt was $14.5 Mil.
Net Income was 0.614 + -4.75 + -4.019 + -8.988 = $-17.1 Mil.
Non Operating Income was -0.402 + -1.252 + -0.314 + 0.829 = $-1.1 Mil.
Cash Flow from Operations was -4.193 + -0.052 + -8.918 + -1.879 = $-15.0 Mil.
Accounts Receivable was $24.8 Mil.
Revenue was 44.625 + 44.64 + 59.114 + 55.006 = $203.4 Mil.
Gross Profit was 0.48 + 14.367 + 22.788 + 20.536 = $58.2 Mil.
Total Current Assets was $175.2 Mil.
Total Assets was $222.2 Mil.
Property, Plant and Equipment(Net PPE) was $34.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $6.9 Mil.
Selling, General & Admin. Expense(SGA) was $52.4 Mil.
Total Current Liabilities was $29.8 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)
=(36.587 / 195.632) / (24.843 / 203.385)
=0.18701951 / 0.12214765
=1.5311

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)
=(16.976 / 203.385) / (21.28 / 195.632)
=0.28601421 / 0.34726425
=0.8236

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 - (184.908 + 32.006) / 233.549) / (1 - (175.225 + 34.413) / 222.158)
=0.07122702 / 0.05635629
=1.2639

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
=195.632 / 203.385
=0.9619

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))
=(6.877 / (6.877 + 34.413)) / (5.075 / (5.075 + 32.006))
=0.16655364 / 0.13686254
=1.2169

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)
=(46.628 / 195.632) / (52.444 / 203.385)
=0.23834546 / 0.25785579
=0.9243

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)
=((14.529 + 35.46) / 233.549) / ((0 + 29.782) / 222.158)
=0.21404074 / 0.13405774
=1.5966

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
=(-17.143 - -1.139 - -15.042) / 233.549
=-0.0041

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.

Axcelis Technologies, Inc. has a M-score of -2.19 signals that the company is likely to 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.

Axcelis Technologies, Inc. Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 0.73341.29210.74851.17830.58461.30671.46540.5221.11251.5311
GMI 0.80811.00450.99941.09841.5091.18620.67640.86831.25590.8236
AQI 1.01150.97450.95671.18321.11840.17280.7551.52930.75841.2639
SGI 1.54880.73341.23940.87670.61810.53162.06891.16060.63670.9619
DEPI 0.61370.9381.0750.95290.70232.25160.99730.83021.11631.2169
SGAI 0.69371.31580.8221.13491.54611.27280.48650.87241.36290.9244
LVGI 0.87080.98241.06850.73311.10.41582.04280.72690.76031.5966
TATA -0.0379-0.01020.00270.021-0.3166-0.151-0.02740.0046-0.0988-0.0044
M-score -2.46-2.56-2.49-2.14-4.53-3.27-1.75-2.52-3.10-2.19

Axcelis Technologies, Inc. Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DSRI 0.60940.5220.69370.86741.00711.11251.13021.20221.41611.5311
GMI 0.84930.86830.87690.88550.95721.25591.38511.49841.41240.8236
AQI 2.01731.52930.73320.73180.78340.75841.18281.3661.30741.2639
SGI 1.59791.16060.87920.69560.62190.63670.67240.71860.8290.9619
DEPI 0.91040.83020.81610.87410.95111.11631.18741.20531.25981.2169
SGAI 0.71580.87241.05851.22051.25461.3631.27981.25321.16290.9243
LVGI 0.8640.72690.68630.74160.73560.76030.95751.00171.58641.5966
TATA 0.07380.0046-0.0064-0.0475-0.0506-0.0988-0.1411-0.1268-0.0936-0.0041
M-score -1.55-2.52-3.00-3.23-3.12-3.10-3.05-2.75-2.54-2.19
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