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Maxwell Technologies Inc (NAS:MXWL)
Beneish M-Score
-3.04 (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 -3.04 suggests that the company is not a manipulator.

MXWL' s Beneish M-Score Range Over the Past 10 Years
Min: -5.16   Max: 3.11
Current: -3.04

-5.16
3.11

During the past 13 years, the highest Beneish M-Score of Maxwell Technologies Inc was 3.11. The lowest was -5.16. And the median was -2.46.


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 * 0.8257+0.528 * 1.1532+0.404 * 0.9572+0.892 * 0.9836+0.115 * 0.956
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9028+4.679 * -0.099-0.327 * 0.993
=-3.04

* 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 $25.9 Mil.
Revenue was 34.135 + 35.203 + 49.83 + 45.076 = $164.2 Mil.
Gross Profit was 9.981 + 9.653 + 14.25 + 14.256 = $48.1 Mil.
Total Current Assets was $99.3 Mil.
Total Assets was $160.1 Mil.
Property, Plant and Equipment(Net PPE) was $30.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $10.6 Mil.
Selling, General & Admin. Expense(SGA) was $38.0 Mil.
Total Current Liabilities was $33.5 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was 2.167 + -6.848 + -2.167 + -1.449 = $-8.3 Mil.
Non Operating Income was 6.518 + -0.195 + -0.131 + 0.092 = $6.3 Mil.
Cash Flow from Operations was -5.394 + -1.594 + 0.85 + 7.406 = $1.3 Mil.
Accounts Receivable was $31.9 Mil.
Revenue was 37.796 + 34.67 + 52.918 + 41.593 = $167.0 Mil.
Gross Profit was 12.153 + 10.303 + 18.503 + 15.48 = $56.4 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 $42.8 Mil.
Total Current Liabilities was $36.0 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)
=(25.874 / 164.244) / (31.857 / 166.977)
=0.15753391 / 0.19078676
=0.8257

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)
=(56.439 / 166.977) / (48.14 / 164.244)
=0.33800464 / 0.29310051
=1.1532

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 - (99.306 + 30.428) / 160.132) / (1 - (100.907 + 35.847) / 170.582)
=0.18983089 / 0.19830932
=0.9572

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
=164.244 / 166.977
=0.9836

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))
=(11.746 / (11.746 + 35.847)) / (10.589 / (10.589 + 30.428))
=0.246801 / 0.25816125
=0.956

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)
=(37.98 / 164.244) / (42.768 / 166.977)
=0.23124132 / 0.25613108
=0.9028

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)
=((0.036 + 33.509) / 160.132) / ((0.005 + 35.982) / 170.582)
=0.20948343 / 0.21096599
=0.993

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
=(-8.297 - 6.284 - 1.268) / 160.132
=-0.099

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 -3.04 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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.18881.34260.7221.15291.10130.85351.10410.73551.51751.1014
GMI 1.35320.91230.80190.89580.90540.99210.94931.051.06051.2047
AQI 1.13570.86130.77541.11010.66790.96360.8951.04990.85831.0307
SGI 1.18591.06451.40231.25951.2031.20751.08211.21520.96410.897
DEPI 0.75471.00271.48540.93491.0491.19941.19641.01020.75510.8532
SGAI 0.97761.08320.87851.12980.89490.81820.88311.06461.02481.0561
LVGI 1.14730.8910.91771.0290.9160.92370.86590.83831.23440.8844
TATA -0.0033-0.0239-0.0651-0.1236-0.11390.0170.0475-0.06760.004-0.1817
M-score -1.99-2.30-2.77-2.74-2.87-2.29-2.07-2.76-2.15-3.20

Maxwell Technologies Inc Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 1.02351.18321.20271.51750.93570.87251.21.10140.91190.8257
GMI 1.01851.02781.05381.06041.12461.13551.15011.20481.15941.1532
AQI 1.06961.11181.04710.85830.99351.03351.02561.03071.02180.9572
SGI 1.12020.95630.86730.96410.91380.91620.98730.8970.95810.9836
DEPI 0.98280.87960.82960.75510.77180.79590.80320.85320.88810.956
SGAI 1.08471.11961.20981.03191.10341.11940.96381.04890.9610.9028
LVGI 0.83120.81531.06961.23441.00090.83380.83910.88440.84480.993
TATA -0.01870.0106-0.04190.0028-0.0444-0.1092-0.1013-0.1797-0.1763-0.099
M-score -2.36-2.22-2.64-2.16-2.80-3.09-2.66-3.19-3.29-3.04
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