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Axcelis Technologies Inc (NAS:ACLS)
Beneish M-Score
-2.86 (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 -2.86 suggests that the company is not a manipulator.

ACLS' s 10-Year Beneish M-Score Range
Min: -5.51   Max: -1.11
Current: -2.86

-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 * 1.1228+0.528 * 1.0674+0.404 * 0.5761+0.892 * 0.9988+0.115 * 1.0029
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9508+4.679 * -0.0255-0.327 * 1.7391
=-2.86

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
Accounts Receivable was $42.8 Mil.
Revenue was 73.283 + 62.53 + 38.531 + 41.15 = $215.5 Mil.
Gross Profit was 23.38 + 18.796 + 15.144 + 14.484 = $71.8 Mil.
Total Current Assets was $234.4 Mil.
Total Assets was $276.2 Mil.
Property, Plant and Equipment(Net PPE) was $30.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $4.6 Mil.
Selling, General & Admin. Expense(SGA) was $44.4 Mil.
Total Current Liabilities was $50.4 Mil.
Long-Term Debt was $47.6 Mil.
Net Income was 1.868 + 0.164 + -4.704 + -6.9 = $-9.6 Mil.
Non Operating Income was -0.433 + 0.249 + 1.352 + -0.362 = $0.8 Mil.
Cash Flow from Operations was 8.74 + -2.292 + -1.898 + -7.892 = $-3.3 Mil.
Accounts Receivable was $38.1 Mil.
Revenue was 60.84 + 58.574 + 48.831 + 47.501 = $215.7 Mil.
Gross Profit was 21.74 + 21.28 + 16.976 + 16.737 = $76.7 Mil.
Total Current Assets was $184.2 Mil.
Total Assets was $232.7 Mil.
Property, Plant and Equipment(Net PPE) was $31.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $4.8 Mil.
Selling, General & Admin. Expense(SGA) was $46.8 Mil.
Total Current Liabilities was $33.2 Mil.
Long-Term Debt was $14.2 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)
=(42.753 / 215.494) / (38.121 / 215.746)
=0.19839531 / 0.17669389
=1.1228

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)
=(18.796 / 215.746) / (23.38 / 215.494)
=0.3556636 / 0.33320649
=1.0674

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 - (234.386 + 30.198) / 276.157) / (1 - (184.169 + 31.605) / 232.703)
=0.04190732 / 0.07274938
=0.5761

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
=215.494 / 215.746
=0.9988

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))
=(4.821 / (4.821 + 31.605)) / (4.591 / (4.591 + 30.198))
=0.13235052 / 0.131967
=1.0029

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)
=(44.442 / 215.494) / (46.794 / 215.746)
=0.20623312 / 0.21689394
=0.9508

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)
=((47.586 + 50.373) / 276.157) / ((14.238 + 33.225) / 232.703)
=0.35472213 / 0.20396385
=1.7391

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
=(-9.572 - 0.806 - -3.342) / 276.157
=-0.0255

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 -2.86 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

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 1.11251.13021.20221.41611.53111.44340.89940.93071.12691.1228
GMI 1.25591.38511.49841.41240.82360.7520.70530.7111.0051.0674
AQI 0.75841.18281.3661.30741.26391.27190.94050.86060.74340.5761
SGI 0.63670.67240.71860.8290.96191.14091.17971.09581.03790.9988
DEPI 1.11631.18741.20531.25981.21691.2031.18581.11231.04541.0029
SGAI 1.3631.27981.25321.16290.92430.82270.7990.84260.9230.9508
LVGI 0.76030.95751.00171.58641.59661.29291.25650.96881.06921.7391
TATA -0.0988-0.1411-0.1268-0.0936-0.00410.04650.03070.02830.0143-0.0255
M-score -3.10-3.05-2.75-2.54-2.19-1.79-2.48-2.48-2.37-2.86
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