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Axcelis Technologies Inc (NAS:ACLS)
Beneish M-Score
-2.31 (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 -2.31 suggests that the company is not a manipulator.

ACLS' s Beneish M-Score Range Over the Past 10 Years
Min: -5.51   Max: -1.18
Current: -2.31

-5.51
-1.18

During the past 13 years, the highest Beneish M-Score of Axcelis Technologies Inc was -1.18. The lowest was -5.51. And the median was -2.54.


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 * 0.8771+0.528 * 1.0872+0.404 * 0.781+0.892 * 1.4745+0.115 * 0.9413
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.7164+4.679 * 0.0143-0.327 * 1.6168
=-2.31

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $38.7 Mil.
Revenue was 79.317 + 78.437 + 73.283 + 62.53 = $293.6 Mil.
Gross Profit was 29.179 + 27.174 + 23.38 + 18.796 = $98.5 Mil.
Total Current Assets was $248.6 Mil.
Total Assets was $292.8 Mil.
Property, Plant and Equipment(Net PPE) was $30.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $4.8 Mil.
Selling, General & Admin. Expense(SGA) was $47.6 Mil.
Total Current Liabilities was $49.8 Mil.
Long-Term Debt was $47.6 Mil.
Net Income was 6.101 + 5.883 + 1.868 + 0.164 = $14.0 Mil.
Non Operating Income was -0.167 + 0.049 + -0.433 + 0.249 = $-0.3 Mil.
Cash Flow from Operations was 0.655 + 3.028 + 8.74 + -2.292 = $10.1 Mil.
Accounts Receivable was $29.9 Mil.
Revenue was 38.531 + 41.15 + 60.84 + 58.574 = $199.1 Mil.
Gross Profit was 15.144 + 14.484 + 21.74 + 21.28 = $72.6 Mil.
Total Current Assets was $176.0 Mil.
Total Assets was $220.5 Mil.
Property, Plant and Equipment(Net PPE) was $30.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $4.6 Mil.
Selling, General & Admin. Expense(SGA) was $45.1 Mil.
Total Current Liabilities was $31.7 Mil.
Long-Term Debt was $13.7 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)
=(38.674 / 293.567) / (29.904 / 199.095)
=0.13173824 / 0.15019965
=0.8771

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)
=(27.174 / 199.095) / (29.179 / 293.567)
=0.36489113 / 0.33562696
=1.0872

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 - (248.642 + 29.985) / 292.799) / (1 - (175.995 + 30.88) / 220.543)
=0.0484018 / 0.06197431
=0.781

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
=293.567 / 199.095
=1.4745

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))
=(4.568 / (4.568 + 30.88)) / (4.756 / (4.756 + 29.985))
=0.12886482 / 0.13689877
=0.9413

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)
=(47.635 / 293.567) / (45.096 / 199.095)
=0.16226279 / 0.22650493
=0.7164

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 + 49.82) / 292.799) / ((13.651 + 31.727) / 220.543)
=0.3326719 / 0.20575579
=1.6168

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
=(14.016 - -0.302 - 10.131) / 292.799
=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 -2.31 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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.74851.17830.58461.30671.46540.5221.11251.53111.1269
GMI 0.99941.09841.5091.18620.67640.86831.25590.82361.005
AQI 0.95671.18321.11840.17280.7551.52930.75841.26390.7434
SGI 1.23940.87670.61810.53162.06891.16060.63670.96191.0379
DEPI 1.0750.95290.70232.25160.99730.83021.11631.21691.0454
SGAI 0.8221.13491.54611.27280.48650.87241.36290.92440.923
LVGI 1.06850.73311.10.41582.04280.72690.76031.59661.0692
TATA 0.00270.021-0.3166-0.151-0.02740.0046-0.0988-0.00440.0143
M-score -2.49-2.14-4.53-3.27-1.75-2.52-3.10-2.19-2.37

Axcelis Technologies Inc Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 1.41611.53111.44340.89940.93071.12691.12281.0850.87710.5802
GMI 1.41240.82360.7520.70530.7111.0051.06741.06411.08721.0243
AQI 1.30741.26391.27190.94050.86060.74340.57610.83960.7810.4544
SGI 0.8290.96191.14091.17971.09581.03790.99881.20721.47451.4848
DEPI 1.25981.21691.2031.18581.11231.04541.00290.97360.94131.2206
SGAI 1.16290.92430.82270.7990.84260.9230.95080.80480.71640.7295
LVGI 1.58641.59661.29291.25650.96881.06921.73911.79951.61681.345
TATA -0.0936-0.00410.04650.03070.02830.0143-0.0255-0.01890.01430.0099
M-score -2.54-2.19-1.79-2.48-2.48-2.37-2.86-2.57-2.31-2.64
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