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Axcelis Technologies Inc (NAS:ACLS)
Beneish M-Score
-1.40 (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 -1.40 signals that the company is a manipulator.

ACLS' s Beneish M-Score Range Over the Past 10 Years
Min: -5.51   Max: 0.87
Current: -1.4

-5.51
0.87

During the past 13 years, the highest Beneish M-Score of Axcelis Technologies Inc was 0.87. The lowest was -5.51. And the median was -2.48.


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 * 1.356+0.528 * 0.9446+0.404 * 1.7224+0.892 * 1.1146+0.115 * 1.0235
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9688+4.679 * 0.0753-0.327 * 0.9314
=-1.40

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $63.5 Mil.
Revenue was 64.451 + 67.521 + 70.458 + 79.317 = $281.7 Mil.
Gross Profit was 25.131 + 23.416 + 21.973 + 29.179 = $99.7 Mil.
Total Current Assets was $242.7 Mil.
Total Assets was $299.3 Mil.
Property, Plant and Equipment(Net PPE) was $31.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $4.6 Mil.
Selling, General & Admin. Expense(SGA) was $48.6 Mil.
Total Current Liabilities was $54.3 Mil.
Long-Term Debt was $47.6 Mil.
Net Income was 2.937 + 1.948 + 0.826 + 6.101 = $11.8 Mil.
Non Operating Income was -0.238 + -0.059 + -0.05 + -0.167 = $-0.5 Mil.
Cash Flow from Operations was -6.522 + -10.183 + 5.836 + 0.655 = $-10.2 Mil.
Accounts Receivable was $42.0 Mil.
Revenue was 78.437 + 73.283 + 62.53 + 38.531 = $252.8 Mil.
Gross Profit was 27.174 + 23.38 + 18.796 + 15.144 = $84.5 Mil.
Total Current Assets was $250.7 Mil.
Total Assets was $295.3 Mil.
Property, Plant and Equipment(Net PPE) was $30.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $4.6 Mil.
Selling, General & Admin. Expense(SGA) was $45.0 Mil.
Total Current Liabilities was $60.3 Mil.
Long-Term Debt was $47.6 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)
=(63.482 / 281.747) / (42.002 / 252.781)
=0.22531562 / 0.16615964
=1.356

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)
=(84.494 / 252.781) / (99.699 / 281.747)
=0.33425772 / 0.35386002
=0.9446

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 - (242.703 + 31.057) / 299.288) / (1 - (250.738 + 29.951) / 295.313)
=0.08529577 / 0.04952034
=1.7224

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
=281.747 / 252.781
=1.1146

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))
=(4.588 / (4.588 + 29.951)) / (4.632 / (4.632 + 31.057))
=0.13283535 / 0.12978789
=1.0235

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)
=(48.59 / 281.747) / (45 / 252.781)
=0.17245969 / 0.17801971
=0.9688

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 + 54.29) / 299.288) / ((47.586 + 60.343) / 295.313)
=0.34039454 / 0.36547324
=0.9314

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
=(11.812 - -0.514 - -10.214) / 299.288
=0.0753

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 -1.40 signals that the company is likely to 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 0.74851.17830.58461.30671.46540.5221.11251.53111.12690.5802
GMI 0.99941.09841.5091.18620.67640.86831.25590.82361.0051.0243
AQI 0.95671.18321.11840.17280.7551.52930.75841.26390.74341.4278
SGI 1.23940.87670.61810.53162.06891.16060.63670.96191.03791.4848
DEPI 1.0750.95290.70232.25160.99730.83021.11631.21691.04540.9384
SGAI 0.8221.13491.54611.27280.48650.87241.36290.92440.9230.7295
LVGI 1.06850.73311.10.41582.04280.72690.76031.59661.06920.6725
TATA 0.00270.0141-0.3166-0.151-0.02740.0046-0.0988-0.00440.0143-0.0103
M-score -2.49-2.18-4.53-3.27-1.75-2.52-3.10-2.19-2.37-2.15

Axcelis Technologies Inc Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 1.44340.89940.93071.12691.12281.0850.87710.58020.80911.356
GMI 0.7520.70530.7111.0051.06741.06411.08721.02430.96850.9446
AQI 1.27190.94050.86060.74340.57610.83960.7811.42782.1171.7224
SGI 1.14091.17971.09581.03790.99881.20721.47451.48481.37231.1146
DEPI 1.2031.18581.11231.04541.00290.97360.94130.93841.01261.0235
SGAI 0.82270.7990.84260.9230.95080.80480.71640.72950.79780.9688
LVGI 1.29291.25650.96881.06921.73911.79951.61680.67250.44130.9314
TATA 0.04650.03070.02830.0143-0.0255-0.01890.0143-0.01030.05330.0753
M-score -1.79-2.48-2.48-2.37-2.86-2.57-2.31-2.15-1.42-1.40
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