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Maxwell Technologies, Inc. (NAS:MXWL)
Beneish M-Score
-2.78 (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 -2.78 suggests that the company is not a manipulator.

MXWL' s 10-Year Beneish M-Score Range
Min: -3   Max: 0.42
Current: -2.78

-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 -2.45.


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 * 0.7355+0.528 * 1.0499+0.404 * 1.0499+0.892 * 1.2152+0.115 * 1.0102
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0806+4.679 * -0.0707-0.327 * 0.8383
=-2.78

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

This Year (Dec13) TTM:Last Year (Dec12) TTM:
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.
Net Income was -2.814 + 6.027 + 3.405 + -0.278 = $6.3 Mil.
Non Operating Income was -0.106 + 0.016 + -0.015 + -0.015 = $-0.1 Mil.
Cash Flow from Operations was -4.824 + 6.237 + 9.512 + 8.966 = $19.9 Mil.
Accounts Receivable was $33.4 Mil.
Revenue was 44.503 + 42.713 + 36.238 + 35.804 = $159.3 Mil.
Gross Profit was 17.229 + 18.142 + 14.524 + 15.157 = $65.1 Mil.
Total Current Assets was $107.0 Mil.
Total Assets was $176.5 Mil.
Property, Plant and Equipment(Net PPE) was $36.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $7.5 Mil.
Selling, General & Admin. Expense(SGA) was $33.7 Mil.
Total Current Liabilities was $49.0 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)
=(29.869 / 193.534) / (33.42 / 159.258)
=0.15433464 / 0.20984817
=0.7355

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)
=(21.113 / 159.258) / (14.374 / 193.534)
=0.40846928 / 0.38904275
=1.0499

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 - (107.566 + 44.941) / 190.087) / (1 - (107.007 + 36.235) / 176.472)
=0.19769895 / 0.18830183
=1.0499

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
=193.534 / 159.258
=1.2152

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))
=(7.492 / (7.492 + 36.235)) / (9.179 / (9.179 + 44.941))
=0.17133579 / 0.16960458
=1.0102

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)
=(44.195 / 193.534) / (33.656 / 159.258)
=0.22835781 / 0.21133004
=1.0806

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)
=((0.1 + 44.251) / 190.087) / ((0.083 + 49.033) / 176.472)
=0.23331948 / 0.27832177
=0.8383

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
=(6.34 - -0.12 - 19.891) / 190.087
=-0.0707

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 -2.78 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

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DSRI 0.94240.82031.13451.24771.20191.14870.68280.57690.57830.7355
GMI 0.96650.96250.95290.95710.94770.97841.02161.02981.0521.0499
AQI 0.71150.96360.86030.83140.86850.8950.92040.9090.9491.0499
SGI 1.29681.25641.17741.08641.01431.041.11411.25831.30851.2152
DEPI 1.15291.19941.19191.16271.10141.19641.08981.08041.05971.0102
SGAI 0.6910.84280.92380.90240.88560.85730.80180.85360.9231.0806
LVGI 0.71170.92371.06120.96761.00090.86591.01191.07480.86080.8383
TATA 0.02630.02670.0180.03850.08470.0475-0.0648-0.1064-0.1201-0.0707
M-score -2.11-2.25-2.18-2.04-1.93-2.05-2.95-3.15-3.08-2.78
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