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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 * 0.9307+0.528 * 0.711+0.404 * 0.8606+0.892 * 1.0958+0.115 * 1.1123
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8426+4.679 * 0.0283-0.327 * 0.9688
=-2.48

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
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.
Net Income was -4.704 + -6.9 + 0.174 + 0.614 = $-10.8 Mil.
Non Operating Income was 1.352 + -0.362 + 0.292 + -0.402 = $0.9 Mil.
Cash Flow from Operations was -1.898 + -7.892 + -3.963 + -4.193 = $-17.9 Mil.
Accounts Receivable was $29.3 Mil.
Revenue was 48.831 + 47.501 + 40.726 + 44.625 = $181.7 Mil.
Gross Profit was 16.976 + 16.737 + 12.943 + 0.48 = $47.1 Mil.
Total Current Assets was $178.6 Mil.
Total Assets was $227.3 Mil.
Property, Plant and Equipment(Net PPE) was $32.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $5.4 Mil.
Selling, General & Admin. Expense(SGA) was $48.8 Mil.
Total Current Liabilities was $33.5 Mil.
Long-Term Debt was $14.8 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)
=(29.904 / 199.095) / (29.321 / 181.683)
=0.15019965 / 0.16138549
=0.9307

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)
=(14.484 / 181.683) / (15.144 / 199.095)
=0.25944089 / 0.36489113
=0.711

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 - (175.995 + 30.88) / 220.543) / (1 - (178.603 + 32.311) / 227.281)
=0.06197431 / 0.07201218
=0.8606

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
=199.095 / 181.683
=1.0958

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))
=(5.406 / (5.406 + 32.311)) / (4.568 / (4.568 + 30.88))
=0.14333059 / 0.12886482
=1.1123

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)
=(45.096 / 199.095) / (48.839 / 181.683)
=0.22650493 / 0.26881436
=0.8426

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)
=((13.651 + 31.727) / 220.543) / ((14.815 + 33.453) / 227.281)
=0.20575579 / 0.21237147
=0.9688

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
=(-10.816 - 0.88 - -17.946) / 220.543
=0.0283

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 0.62521.29210.74851.17830.58461.30671.46540.5221.11251.5311
GMI 0.77831.00450.99941.09841.5091.18620.67640.86831.25590.8236
AQI 1.01150.97450.95671.18321.11840.17280.7551.52930.75841.2639
SGI 1.57770.73341.23940.87670.61810.53162.06891.16060.63670.9619
DEPI 0.61370.9381.0750.95290.70232.25160.99730.83021.11631.2169
SGAI 0.68091.31580.8221.13491.54611.27280.48650.87241.36290.9244
LVGI 0.87080.98251.06850.73311.10.41582.04280.72690.76031.5966
TATA -0.0588-0.01020.00270.021-0.3166-0.151-0.02740.0046-0.0988-0.0044
M-score -2.64-2.56-2.49-2.14-4.53-3.27-1.75-2.52-3.10-2.19

Axcelis Technologies Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.86741.00711.11251.13021.20221.41611.53111.44340.89940.9307
GMI 0.88550.95721.25591.38511.49841.41240.82360.7520.70530.711
AQI 0.73180.78340.75841.18281.3661.30741.26391.27190.94050.8606
SGI 0.69560.62190.63670.67240.71860.8290.96191.14091.17971.0958
DEPI 0.87410.95111.11631.18741.20531.25981.21691.2031.18581.1123
SGAI 1.22051.25461.3631.27981.25321.16290.92430.82270.7990.8426
LVGI 0.74160.73560.76030.95751.00171.58641.59661.29291.25650.9688
TATA -0.0475-0.0506-0.0988-0.1411-0.1268-0.0936-0.00410.04650.03070.0283
M-score -3.23-3.12-3.10-3.05-2.75-2.54-2.19-1.79-2.48-2.48
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