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Maxwell Technologies Inc (NAS:MXWL)
Beneish M-Score
-3.12 (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 -3.12 suggests that the company is not a manipulator.

MXWL' s 10-Year Beneish M-Score Range
Min: -3.93   Max: 2.96
Current: -3.12

-3.93
2.96

During the past 13 years, the highest Beneish M-Score of Maxwell Technologies Inc was 2.96. The lowest was -3.93. And the median was -2.35.


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 * 0.8725+0.528 * 1.1342+0.404 * 1.0335+0.892 * 0.9162+0.115 * 0.7959
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1206+4.679 * -0.116-0.327 * 0.8338
=-3.12

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

This Year (Jun15) TTM:Last Year (Jun14) TTM:
Accounts Receivable was $31.9 Mil.
Revenue was 37.796 + 34.67 + 52.918 + 41.593 = $167.0 Mil.
Gross Profit was 12.153 + 10.386 + 18.5 + 15.47 = $56.5 Mil.
Total Current Assets was $100.9 Mil.
Total Assets was $170.6 Mil.
Property, Plant and Equipment(Net PPE) was $35.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $11.7 Mil.
Selling, General & Admin. Expense(SGA) was $43.5 Mil.
Total Current Liabilities was $36.0 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was -9.376 + -9.341 + -2.118 + -3.292 = $-24.1 Mil.
Non Operating Income was 0.087 + -0.005 + -0.005 + -0.005 = $0.1 Mil.
Cash Flow from Operations was 1.901 + -0.777 + -12.414 + 6.878 = $-4.4 Mil.
Accounts Receivable was $39.9 Mil.
Revenue was 46.074 + 46.001 + 38.979 + 51.197 = $182.3 Mil.
Gross Profit was 16.597 + 17.87 + 14.374 + 21.113 = $70.0 Mil.
Total Current Assets was $118.7 Mil.
Total Assets was $199.1 Mil.
Property, Plant and Equipment(Net PPE) was $42.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $10.3 Mil.
Selling, General & Admin. Expense(SGA) was $42.4 Mil.
Total Current Liabilities was $50.3 Mil.
Long-Term Debt was $0.1 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)
=(31.857 / 166.977) / (39.85 / 182.251)
=0.19078676 / 0.21865449
=0.8725

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)
=(10.386 / 182.251) / (12.153 / 166.977)
=0.38383328 / 0.33842385
=1.1342

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 - (100.907 + 35.847) / 170.582) / (1 - (118.741 + 42.192) / 199.145)
=0.19830932 / 0.19188029
=1.0335

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
=166.977 / 182.251
=0.9162

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))
=(10.313 / (10.313 + 42.192)) / (11.746 / (11.746 + 35.847))
=0.19641939 / 0.246801
=0.7959

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)
=(43.484 / 166.977) / (42.353 / 182.251)
=0.2604191 / 0.2323883
=1.1206

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)
=((0.005 + 35.982) / 170.582) / ((0.065 + 50.322) / 199.145)
=0.21096599 / 0.25301665
=0.8338

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
=(-24.127 - 0.072 - -4.412) / 170.582
=-0.116

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 -3.12 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.

Maxwell Technologies Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 0.70931.18881.34260.7221.15291.10131.03140.91370.73551.5175
GMI 0.69461.35320.91230.80190.89580.90540.97520.96581.04991.0606
AQI 0.93571.13570.86130.77541.11010.66790.95190.9061.04990.8583
SGI 1.41061.18591.06451.40231.25951.2031.29071.01241.21520.9641
DEPI 0.94680.75471.00271.48540.93491.0491.19941.19641.01020.7551
SGAI 0.98050.97761.08320.87851.12980.8890.82570.88091.08061.0293
LVGI 1.93591.14730.8910.91771.0290.9160.9090.87980.83831.2344
TATA -0.0258-0.0436-0.0562-0.0532-0.1644-0.11390.03130.0475-0.071-0.0005
M-score -3.00-2.18-2.45-2.72-2.93-2.87-2.00-2.30-2.78-2.17

Maxwell Technologies Inc Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 0.6710.60020.44930.77811.05821.19061.20691.51750.93570.8725
GMI 1.01121.03731.04971.04831.02391.02451.05391.06071.12341.1342
AQI 0.92040.9090.95981.04991.06961.11181.04710.85830.99351.0335
SGI 1.13351.20951.23361.14861.08350.95040.86730.96410.91380.9162
DEPI 1.08981.08041.05971.01020.98280.87960.82960.75510.77180.7959
SGAI 0.79430.90791.00341.17191.14741.14561.22761.02381.10481.1206
LVGI 1.01191.07480.950.83830.83120.81531.06961.23441.00090.8338
TATA -0.0493-0.1054-0.1201-0.0707-0.02070.0071-0.0441-0.0018-0.0524-0.116
M-score -2.88-3.17-3.31-2.81-2.38-2.24-2.65-2.18-2.84-3.12
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