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Maxwell Technologies Inc (NAS:MXWL)
Beneish M-Score
-2.38 (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 -2.38 suggests that the company is not a manipulator.

MXWL' s 10-Year Beneish M-Score Range
Min: -3.93   Max: 2.96
Current: -2.38

-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 -2.38.


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 * 1.0235+0.528 * 1.0185+0.404 * 1.0696+0.892 * 1.1202+0.115 * 0.9828
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1012+4.679 * -0.0216-0.327 * 0.8312
=-2.38

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

This Year (Mar14) TTM:Last Year (Mar13) TTM:
Accounts Receivable was $37.6 Mil.
Revenue was 46.001 + 38.979 + 51.197 + 55.61 = $191.8 Mil.
Gross Profit was 17.87 + 14.374 + 21.113 + 21.576 = $74.9 Mil.
Total Current Assets was $117.6 Mil.
Total Assets was $199.4 Mil.
Property, Plant and Equipment(Net PPE) was $43.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $9.6 Mil.
Selling, General & Admin. Expense(SGA) was $43.6 Mil.
Total Current Liabilities was $50.7 Mil.
Long-Term Debt was $0.1 Mil.
Net Income was 0.319 + -2.814 + 6.027 + 3.405 = $6.9 Mil.
Non Operating Income was -0.005 + -0.106 + 0.016 + -0.015 = $-0.1 Mil.
Cash Flow from Operations was 0.258 + -4.824 + 6.237 + 9.687 = $11.4 Mil.
Accounts Receivable was $32.8 Mil.
Revenue was 47.748 + 44.503 + 42.713 + 36.238 = $171.2 Mil.
Gross Profit was 18.23 + 17.229 + 18.142 + 14.524 = $68.1 Mil.
Total Current Assets was $112.4 Mil.
Total Assets was $180.8 Mil.
Property, Plant and Equipment(Net PPE) was $36.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $7.8 Mil.
Selling, General & Admin. Expense(SGA) was $35.4 Mil.
Total Current Liabilities was $55.3 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)
=(37.628 / 191.787) / (32.819 / 171.202)
=0.19619682 / 0.19169753
=1.0235

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)
=(14.374 / 171.202) / (17.87 / 191.787)
=0.39792175 / 0.39070949
=1.0185

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 - (117.552 + 43.746) / 199.402) / (1 - (112.369 + 36.165) / 180.842)
=0.19109136 / 0.17865319
=1.0696

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
=191.787 / 171.202
=1.1202

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))
=(7.799 / (7.799 + 36.165)) / (9.635 / (9.635 + 43.746))
=0.17739514 / 0.18049493
=0.9828

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)
=(43.632 / 191.787) / (35.37 / 171.202)
=0.22750239 / 0.20659805
=1.1012

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)
=((0.083 + 50.688) / 199.402) / ((0.085 + 55.309) / 180.842)
=0.2546163 / 0.30631159
=0.8312

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
=(6.937 - -0.11 - 11.358) / 199.402
=-0.0216

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 -2.38 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

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
DSRI 0.82031.13451.24771.20191.14870.68280.57690.57830.73551.0235
GMI 0.96250.95290.95710.94770.97841.02161.02981.0521.04991.0185
AQI 0.96360.86030.83140.86850.8950.92040.9090.9491.04991.0696
SGI 1.25641.17741.08641.01431.041.11411.25831.30851.21521.1202
DEPI 1.19941.19191.16271.10141.19641.08981.08041.05971.01020.9828
SGAI 0.84280.92380.90240.88560.85730.80180.85360.9231.08061.1012
LVGI 0.92371.06120.96761.00090.86591.01191.07480.86080.83830.8312
TATA 0.02670.0180.03850.08470.0475-0.0638-0.1064-0.1201-0.0707-0.0216
M-score -2.25-2.18-2.04-1.93-2.05-2.95-3.15-3.08-2.78-2.38
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