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Axcelis Technologies Inc (NAS:ACLS)
Beneish M-Score
-2.37 (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 -2.37 suggests that the company is not a manipulator.

ACLS' s 10-Year Beneish M-Score Range
Min: -4.53   Max: -1.75
Current: -2.37

-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 -2.49.


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 * 1.1269+0.528 * 1.005+0.404 * 0.7434+0.892 * 1.0379+0.115 * 1.0454
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.923+4.679 * 0.0143-0.327 * 1.0692
=-2.37

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
Accounts Receivable was $42.8 Mil.
Revenue was 62.53 + 38.531 + 41.15 + 60.84 = $203.1 Mil.
Gross Profit was 18.796 + 15.144 + 14.484 + 21.74 = $70.2 Mil.
Total Current Assets was $185.1 Mil.
Total Assets was $227.7 Mil.
Property, Plant and Equipment(Net PPE) was $30.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $4.6 Mil.
Selling, General & Admin. Expense(SGA) was $44.7 Mil.
Total Current Liabilities was $52.1 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was 0.164 + -4.704 + -6.9 + 0.174 = $-11.3 Mil.
Non Operating Income was 0.249 + 1.352 + -0.362 + 0.292 = $1.5 Mil.
Cash Flow from Operations was -2.292 + -1.898 + -7.892 + -3.963 = $-16.0 Mil.
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.



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)
=(42.794 / 203.051) / (36.587 / 195.632)
=0.21075493 / 0.18701951
=1.1269

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)
=(15.144 / 195.632) / (18.796 / 203.051)
=0.34726425 / 0.34554866
=1.005

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 - (185.135 + 30.464) / 227.654) / (1 - (184.908 + 32.006) / 233.549)
=0.05295317 / 0.07122702
=0.7434

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
=203.051 / 195.632
=1.0379

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))
=(5.075 / (5.075 + 32.006)) / (4.589 / (4.589 + 30.464))
=0.13686254 / 0.13091604
=1.0454

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)
=(44.67 / 203.051) / (46.628 / 195.632)
=0.21999399 / 0.23834546
=0.923

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 + 52.098) / 227.654) / ((14.529 + 35.46) / 233.549)
=0.22884729 / 0.21404074
=1.0692

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
=(-11.266 - 1.531 - -16.045) / 227.654
=0.0143

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 -2.37 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.

Axcelis Technologies Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 1.29210.74851.17830.58461.30671.46540.5221.11251.53111.1269
GMI 1.00450.99941.09841.5091.18620.67640.86831.25590.82361.005
AQI 0.97450.95671.18321.11840.17280.7551.52930.75841.26390.7434
SGI 0.73341.23940.87670.61810.53162.06891.16060.63670.96191.0379
DEPI 0.9381.0750.95290.70232.25160.99730.83021.11631.21691.0454
SGAI 1.31580.8221.13491.54611.27280.48650.87241.36290.92440.923
LVGI 0.98241.06850.73311.10.41582.04280.72690.76031.59661.0692
TATA -0.01020.00270.021-0.3166-0.151-0.02740.0046-0.0988-0.00440.0143
M-score -2.56-2.49-2.14-4.53-3.27-1.75-2.52-3.10-2.19-2.37

Axcelis Technologies Inc Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 1.00711.11251.13021.20221.41611.53111.44340.89940.93071.1269
GMI 0.95721.25591.38511.49841.41240.82360.7520.70530.7111.005
AQI 0.78340.75841.18281.3661.30741.26391.27190.94050.86060.7434
SGI 0.62190.63670.67240.71860.8290.96191.14091.17971.09581.0379
DEPI 0.95111.11631.18741.20531.25981.21691.2031.18581.11231.0454
SGAI 1.25461.3631.27981.25321.16290.92430.82270.7990.84260.923
LVGI 0.73560.76030.95751.00171.58641.59661.29291.25650.96881.0692
TATA -0.0506-0.0988-0.1411-0.1268-0.0936-0.00410.04650.03070.02830.0143
M-score -3.12-3.10-3.05-2.75-2.54-2.19-1.79-2.48-2.48-2.37
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