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Maxwell Technologies Inc (NAS:MXWL)
Beneish M-Score
-2.67 (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 -2.67 suggests that the company is not a manipulator.

MXWL' s 10-Year Beneish M-Score Range
Min: -3.93   Max: 2.96
Current: -2.67

-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 -2.32.


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 * 1.2027+0.528 * 1.0539+0.404 * 1.0471+0.892 * 0.8673+0.115 * 0.8296
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.2342+4.679 * -0.0467-0.327 * 1.0696
=-2.67

* 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 $30.6 Mil.
Revenue was 41.593 + 46.074 + 46.001 + 38.979 = $172.6 Mil.
Gross Profit was 15.47 + 16.6 + 17.87 + 14.374 = $64.3 Mil.
Total Current Assets was $116.2 Mil.
Total Assets was $193.2 Mil.
Property, Plant and Equipment(Net PPE) was $41.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $10.8 Mil.
Selling, General & Admin. Expense(SGA) was $44.0 Mil.
Total Current Liabilities was $53.9 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was -3.292 + -1.181 + 0.319 + -2.814 = $-7.0 Mil.
Non Operating Income was -0.005 + -0.005 + -0.005 + -0.014 = $-0.0 Mil.
Cash Flow from Operations was 6.878 + -0.885 + 0.258 + -4.175 = $2.1 Mil.
Accounts Receivable was $29.4 Mil.
Revenue was 51.197 + 55.61 + 47.748 + 44.503 = $199.1 Mil.
Gross Profit was 21.113 + 21.576 + 18.23 + 17.229 = $78.1 Mil.
Total Current Assets was $116.2 Mil.
Total Assets was $192.4 Mil.
Property, Plant and Equipment(Net PPE) was $42.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $8.8 Mil.
Selling, General & Admin. Expense(SGA) was $41.1 Mil.
Total Current Liabilities was $50.1 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)
=(30.636 / 172.647) / (29.37 / 199.058)
=0.17744878 / 0.14754494
=1.2027

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)
=(16.6 / 199.058) / (15.47 / 172.647)
=0.39258909 / 0.37251733
=1.0539

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 - (116.222 + 41.018) / 193.156) / (1 - (116.233 + 41.976) / 192.371)
=0.18594297 / 0.17758394
=1.0471

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
=172.647 / 199.058
=0.8673

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))
=(8.802 / (8.802 + 41.976)) / (10.834 / (10.834 + 41.018))
=0.17334279 / 0.20894083
=0.8296

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)
=(43.956 / 172.647) / (41.062 / 199.058)
=0.25460043 / 0.20628159
=1.2342

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)
=((0.044 + 53.885) / 193.156) / ((0.086 + 50.129) / 192.371)
=0.2791992 / 0.26103207
=1.0696

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
=(-6.968 - -0.029 - 2.076) / 193.156
=-0.0467

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 -2.67 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 1.2710.70931.18881.34260.7221.15291.10130.85351.10410.7355
GMI 0.87640.69461.35320.91230.80190.89580.90540.99210.94931.0499
AQI 0.98480.93571.13570.86130.77541.11010.66790.96360.8951.0499
SGI 0.9161.41061.18591.06451.40231.25951.2031.20751.08211.2152
DEPI 1.01740.94680.75471.00271.48540.93491.0491.19941.19641.0102
SGAI 0.97530.98050.97761.08320.87851.12980.89490.81820.88311.0806
LVGI 0.86271.93591.14730.8910.91771.0290.9160.92370.86590.8383
TATA -0-0.0258-0.0436-0.0562-0.0532-0.1236-0.11390.0170.0475-0.071
M-score -2.33-3.00-2.18-2.45-2.72-2.74-2.87-2.29-2.07-2.78

Maxwell Technologies Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 1.24771.20191.14870.68280.57690.57830.73551.02351.18321.2027
GMI 0.95710.94770.97841.02161.02981.0521.04991.01851.02771.0539
AQI 0.83140.86850.8950.92040.9090.9491.04991.06961.11181.0471
SGI 1.08641.01431.041.11411.25831.30851.21521.12020.95630.8673
DEPI 1.16271.10141.19641.08981.08041.05971.01020.98280.87960.8296
SGAI 0.90240.88560.85730.80180.85360.9231.08061.10121.14341.2342
LVGI 0.96761.00090.86591.01191.07480.86080.83830.83120.81531.0696
TATA 0.03850.08470.0475-0.0638-0.1041-0.1166-0.071-0.02190.0059-0.0467
M-score -2.04-1.93-2.05-2.95-3.14-3.07-2.78-2.38-2.24-2.67
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