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Maxwell Technologies Inc (NAS:MXWL)
Beneish M-Score
-2.17 (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 -2.17 signals that the company is a manipulator.

MXWL' s 10-Year Beneish M-Score Range
Min: -3   Max: 0.42
Current: -2.17

-3
0.42

During the past 13 years, the highest Beneish M-Score of Maxwell Technologies Inc was 0.42. The lowest was -3.00. And the median was -2.29.


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 * 1.5175+0.528 * 1.0606+0.404 * 0.8583+0.892 * 0.9641+0.115 * 0.7551
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0293+4.679 * -0.0005-0.327 * 1.2344
=-2.17

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
Accounts Receivable was $43.7 Mil.
Revenue was 52.918 + 41.593 + 46.074 + 46.001 = $186.6 Mil.
Gross Profit was 18.5 + 15.47 + 16.6 + 17.87 = $68.4 Mil.
Total Current Assets was $115.7 Mil.
Total Assets was $186.6 Mil.
Property, Plant and Equipment(Net PPE) was $39.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $11.4 Mil.
Selling, General & Admin. Expense(SGA) was $43.9 Mil.
Total Current Liabilities was $53.7 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was -2.118 + -3.292 + -1.181 + 0.319 = $-6.3 Mil.
Non Operating Income was -0.005 + -0.005 + -0.005 + -0.005 = $-0.0 Mil.
Cash Flow from Operations was -12.414 + 6.878 + -0.885 + 0.258 = $-6.2 Mil.
Accounts Receivable was $29.9 Mil.
Revenue was 38.979 + 51.197 + 55.61 + 47.748 = $193.5 Mil.
Gross Profit was 14.374 + 21.113 + 21.576 + 18.23 = $75.3 Mil.
Total Current Assets was $107.6 Mil.
Total Assets was $190.1 Mil.
Property, Plant and Equipment(Net PPE) was $44.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $9.2 Mil.
Selling, General & Admin. Expense(SGA) was $44.2 Mil.
Total Current Liabilities was $44.3 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)
=(43.698 / 186.586) / (29.869 / 193.534)
=0.23419764 / 0.15433464
=1.5175

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)
=(15.47 / 193.534) / (18.5 / 186.586)
=0.38904275 / 0.36680137
=1.0606

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 - (115.712 + 39.223) / 186.6) / (1 - (107.566 + 44.941) / 190.087)
=0.16969453 / 0.19769895
=0.8583

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
=186.586 / 193.534
=0.9641

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))
=(9.179 / (9.179 + 44.941)) / (11.362 / (11.362 + 39.223))
=0.16960458 / 0.22461204
=0.7551

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)
=(43.857 / 186.586) / (44.195 / 193.534)
=0.23504979 / 0.22835781
=1.0293

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)
=((0.02 + 53.722) / 186.6) / ((0.1 + 44.251) / 190.087)
=0.28800643 / 0.23331948
=1.2344

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
=(-6.272 - -0.02 - -6.163) / 186.6
=-0.0005

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 -2.17 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.

Maxwell Technologies Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 0.70931.18881.34260.7221.15291.10130.85351.10410.73551.5175
GMI 0.69461.35320.91230.80190.89580.90540.99210.94931.04991.0606
AQI 0.93571.13570.86130.77541.11010.66790.96360.8951.04990.8583
SGI 1.41061.18591.06451.40231.25951.2031.20751.08211.21520.9641
DEPI 0.94680.75471.00271.48540.93491.0491.19941.19641.01020.7551
SGAI 0.98050.97761.08320.87851.12980.89490.81820.88311.08061.0293
LVGI 1.93591.14730.8910.91771.0290.9160.92370.86590.83831.2344
TATA -0.0258-0.0436-0.0562-0.0532-0.1236-0.11390.0170.0475-0.071-0.0005
M-score -3.00-2.18-2.45-2.72-2.74-2.87-2.29-2.07-2.78-2.17

Maxwell Technologies Inc Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 1.20191.14870.68280.57690.57830.73551.02351.18321.20691.5175
GMI 0.94770.97841.02161.02981.0521.04991.01851.02771.05391.0606
AQI 0.86850.8950.92040.9090.9491.04991.06961.11181.04710.8583
SGI 1.01431.041.11411.25831.30851.21521.12020.95630.86730.9641
DEPI 1.10141.19641.08981.08041.05971.01020.98280.87960.82960.7551
SGAI 0.88560.85730.80180.85360.9231.08061.10121.14341.23421.0293
LVGI 1.00090.86591.01191.07480.86080.83830.83120.81531.06961.2344
TATA 0.08470.0475-0.0638-0.1041-0.1166-0.071-0.02190.0059-0.0467-0.0005
M-score -1.93-2.05-2.95-3.14-3.07-2.78-2.38-2.24-2.66-2.17
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