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GuruFocus has detected 5 Warning Signs with Maxwell Technologies Inc $MXWL.
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Maxwell Technologies Inc (NAS:MXWL)
Beneish M-Score
-3.35 (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.

Maxwell Technologies Inc has a M-score of -3.35 suggests that the company is not a manipulator.

MXWL' s Beneish M-Score Range Over the Past 10 Years
Min: -4   Max: 0.57
Current: -3.35

-4
0.57

During the past 13 years, the highest Beneish M-Score of Maxwell Technologies Inc was 0.57. The lowest was -4.00. And the median was -2.63.


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 Maxwell 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 * 0.6536+0.528 * 1.1197+0.404 * 1.3108+0.892 * 0.7244+0.115 * 0.9599
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.2288+4.679 * -0.1095-0.327 * 0.8189
=-3.35

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Dec16) TTM:Last Year (Dec15) TTM:
Accounts Receivable was $20.4 Mil.
Revenue was 26.4 + 25.506 + 34.135 + 35.203 = $121.2 Mil.
Gross Profit was 5.708 + 7.628 + 9.981 + 9.653 = $33.0 Mil.
Total Current Assets was $82.5 Mil.
Total Assets was $140.9 Mil.
Property, Plant and Equipment(Net PPE) was $26.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $9.9 Mil.
Selling, General & Admin. Expense(SGA) was $36.3 Mil.
Total Current Liabilities was $29.3 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was -12.169 + -6.855 + 2.167 + -6.848 = $-23.7 Mil.
Non Operating Income was -0.105 + -0.14 + 6.518 + -0.195 = $6.1 Mil.
Cash Flow from Operations was -0.374 + -6.995 + -5.394 + -1.594 = $-14.4 Mil.
Accounts Receivable was $43.2 Mil.
Revenue was 49.83 + 45.076 + 37.796 + 34.67 = $167.4 Mil.
Gross Profit was 14.25 + 14.256 + 12.153 + 10.303 = $51.0 Mil.
Total Current Assets was $109.6 Mil.
Total Assets was $172.0 Mil.
Property, Plant and Equipment(Net PPE) was $32.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $11.6 Mil.
Selling, General & Admin. Expense(SGA) was $40.8 Mil.
Total Current Liabilities was $43.8 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)
=(20.441 / 121.244) / (43.172 / 167.372)
=0.16859391 / 0.2579404
=0.6536

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)
=(50.962 / 167.372) / (32.97 / 121.244)
=0.30448343 / 0.27193098
=1.1197

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 - (82.455 + 26.12) / 140.874) / (1 - (109.602 + 32.324) / 172.013)
=0.22927581 / 0.1749112
=1.3108

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
=121.244 / 167.372
=0.7244

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))
=(11.551 / (11.551 + 32.324)) / (9.871 / (9.871 + 26.12))
=0.26327066 / 0.27426301
=0.9599

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)
=(36.281 / 121.244) / (40.758 / 167.372)
=0.29923955 / 0.24351743
=1.2288

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)
=((0.043 + 29.34) / 140.874) / ((0.049 + 43.765) / 172.013)
=0.20857646 / 0.25471331
=0.8189

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
=(-23.705 - 6.078 - -14.357) / 140.874
=-0.1095

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.

Maxwell Technologies Inc has a M-score of -3.35 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 local exchange's currency.

Maxwell Technologies Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
DSRI 1.34260.7221.15291.10130.85351.10410.73551.51751.10140.6536
GMI 0.91230.80190.89580.90540.99210.94931.051.06051.20471.1197
AQI 0.86130.77541.11010.66790.96360.8951.04990.85831.03071.3108
SGI 1.06451.40231.25951.2031.20751.08211.21520.96410.8970.7244
DEPI 1.00271.48540.93491.0491.19941.19641.01020.75510.85320.9599
SGAI 1.08320.87851.12980.89490.81820.88311.06461.02481.05611.2288
LVGI 0.8910.91771.0290.9160.92370.86590.83831.23440.88440.8189
TATA -0.0239-0.0651-0.1236-0.11390.0170.0475-0.06760.0059-0.1785-0.1095
M-score -2.30-2.77-2.74-2.87-2.29-2.07-2.76-2.14-3.18-3.35

Maxwell Technologies Inc Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
DSRI 1.20271.51750.93570.87251.21.10140.91190.82570.67070.6536
GMI 1.05381.06041.12461.13551.15011.20481.15941.15321.12891.1197
AQI 1.04710.85830.99351.03351.02561.03071.02180.95721.08691.3108
SGI 0.86730.96410.91380.91620.98730.8970.95810.98360.84870.7244
DEPI 0.82960.75510.77180.79590.80320.85320.88810.9561.00060.9599
SGAI 1.20981.03191.10341.11940.96381.04890.9610.90281.07151.2288
LVGI 1.06961.23441.00090.83380.83910.88440.84480.9930.7740.8189
TATA -0.04190.0047-0.0423-0.1071-0.0989-0.1785-0.1749-0.0976-0.0435-0.1095
M-score -2.64-2.15-2.80-3.08-2.64-3.18-3.28-3.03-2.96-3.35
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