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Axcelis Technologies Inc (NAS:ACLS)
Beneish M-Score
-2.48 (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 -2.48 suggests that the company is not a manipulator.

ACLS' s 10-Year Beneish M-Score Range
Min: -5.51   Max: -1.11
Current: -2.48

-5.51
-1.11

During the past 13 years, the highest Beneish M-Score of Axcelis Technologies Inc was -1.11. The lowest was -5.51. And the median was -2.52.


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 * 0.8994+0.528 * 0.7053+0.404 * 0.9405+0.892 * 1.1797+0.115 * 1.1858
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.799+4.679 * 0.0307-0.327 * 1.2565
=-2.48

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was $32.1 Mil.
Revenue was 41.15 + 60.84 + 58.574 + 48.831 = $209.4 Mil.
Gross Profit was 14.484 + 21.74 + 21.28 + 16.976 = $74.5 Mil.
Total Current Assets was $181.9 Mil.
Total Assets was $226.6 Mil.
Property, Plant and Equipment(Net PPE) was $31.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $4.7 Mil.
Selling, General & Admin. Expense(SGA) was $46.3 Mil.
Total Current Liabilities was $32.1 Mil.
Long-Term Debt was $13.9 Mil.
Net Income was -6.9 + 0.174 + 0.614 + -4.75 = $-10.9 Mil.
Non Operating Income was -0.362 + 0.292 + -0.402 + -1.252 = $-1.7 Mil.
Cash Flow from Operations was -7.892 + -3.963 + -4.193 + -0.052 = $-16.1 Mil.
Accounts Receivable was $30.2 Mil.
Revenue was 47.501 + 40.726 + 44.625 + 44.64 = $177.5 Mil.
Gross Profit was 16.737 + 12.943 + 0.48 + 14.367 = $44.5 Mil.
Total Current Assets was $167.4 Mil.
Total Assets was $213.8 Mil.
Property, Plant and Equipment(Net PPE) was $33.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $6.0 Mil.
Selling, General & Admin. Expense(SGA) was $49.1 Mil.
Total Current Liabilities was $34.6 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)
=(32.067 / 209.395) / (30.22 / 177.492)
=0.15314119 / 0.17026119
=0.8994

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)
=(21.74 / 177.492) / (14.484 / 209.395)
=0.25086764 / 0.3556914
=0.7053

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 - (181.877 + 31.34) / 226.581) / (1 - (167.4 + 32.964) / 213.77)
=0.05898111 / 0.06271226
=0.9405

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
=209.395 / 177.492
=1.1797

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))
=(5.971 / (5.971 + 32.964)) / (4.655 / (4.655 + 31.34))
=0.15335816 / 0.12932352
=1.1858

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)
=(46.319 / 209.395) / (49.14 / 177.492)
=0.22120394 / 0.27685755
=0.799

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)
=((13.946 + 32.072) / 226.581) / ((0 + 34.552) / 213.77)
=0.20309735 / 0.16163166
=1.2565

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
=(-10.862 - -1.724 - -16.1) / 226.581
=0.0307

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 -2.48 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

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

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 0.69370.86741.00711.11251.13021.20221.41611.53111.44340.8994
GMI 0.87690.88550.95721.25591.38511.49841.41240.82360.7520.7053
AQI 0.73320.73180.78340.75841.18281.3661.30741.26391.27190.9405
SGI 0.87920.69560.62190.63670.67240.71860.8290.96191.14091.1797
DEPI 0.81610.87410.95111.11631.18741.20531.25981.21691.2031.1858
SGAI 1.05851.22051.25461.3631.27981.25321.16290.92430.82270.799
LVGI 0.68630.74160.73560.76030.95751.00171.58641.59661.29291.2565
TATA -0.0064-0.0475-0.0506-0.0988-0.1411-0.1268-0.0936-0.00410.04650.0307
M-score -3.00-3.23-3.12-3.10-3.05-2.75-2.54-2.19-1.79-2.48
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