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Power-One, Inc. (NAS:PWER)
Beneish M-Score
0.00 (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.

Power-One, Inc. has a M-score of -2.85 suggests that the company is not a manipulator.

PWER' s 10-Year Beneish M-Score Range
Min: 0   Max: 0
Current: 0

During the past 13 years, the highest Beneish M-Score of Power-One, Inc. was 0.00. The lowest was 0.00. And the median was 0.00.


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 Power-One, 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 * 0.9458+0.528 * 1.1694+0.404 * 0.9285+0.892 * 1.0035+0.115 * 0.9597
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1496+4.679 * -0.0796-0.327 * 0.9464
=-2.85

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

This Year (Mar13) TTM:Last Year (Mar12) TTM:
Accounts Receivable was $206 Mil.
Revenue was 204.607 + 191.658 + 283.649 + 321.522 = $1,001 Mil.
Gross Profit was 38.088 + 25.693 + 81.947 + 97.501 = $243 Mil.
Total Current Assets was $665 Mil.
Total Assets was $795 Mil.
Property, Plant and Equipment(Net PPE) was $100 Mil.
Depreciation, Depletion and Amortization(DDA) was $23 Mil.
Selling, General & Admin. Expense(SGA) was $106 Mil.
Total Current Liabilities was $220 Mil.
Long-Term Debt was $0 Mil.
Net Income was -7.161 + -17.152 + 21.123 + 46.712 = $44 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 38.116 + -19.88 + 32.495 + 56.068 = $107 Mil.
Accounts Receivable was $217 Mil.
Revenue was 225.749 + 266.833 + 245.031 + 260.304 = $998 Mil.
Gross Profit was 54.984 + 72.26 + 68.808 + 87.378 = $283 Mil.
Total Current Assets was $612 Mil.
Total Assets was $736 Mil.
Property, Plant and Equipment(Net PPE) was $93 Mil.
Depreciation, Depletion and Amortization(DDA) was $20 Mil.
Selling, General & Admin. Expense(SGA) was $92 Mil.
Total Current Liabilities was $215 Mil.
Long-Term Debt was $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)
=(206.091 / 1001.436) / (217.131 / 997.917)
=0.20579548 / 0.21758423
=0.9458

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)
=(25.693 / 997.917) / (38.088 / 1001.436)
=0.28402162 / 0.24288022
=1.1694

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 - (664.924 + 100.097) / 795.104) / (1 - (612.184 + 93.389) / 735.546)
=0.0378353 / 0.04074932
=0.9285

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
=1001.436 / 997.917
=1.0035

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))
=(20.121 / (20.121 + 93.389)) / (22.676 / (22.676 + 100.097))
=0.17726192 / 0.18469859
=0.9597

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)
=(105.695 / 1001.436) / (91.618 / 997.917)
=0.10554344 / 0.09180924
=1.1496

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 + 220.244) / 795.104) / ((0 + 215.284) / 735.546)
=0.27700024 / 0.29268598
=0.9464

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
=(43.522 - 0 - 106.799) / 795.104
=-0.0796

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.

Power-One, Inc. has a M-score of -2.85 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.

Power-One, Inc. Annual Data

Dec03Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12
DSRI 1.01070.83511.09941.6020.68811.02331.04680.90980.92470.8414
GMI -0.0471.05731.19141.07021.33380.99830.92210.57961.25171.2091
AQI 0.90781.65151.00160.61311.06461.03990.35360.47921.28210.8698
SGI 1.11131.09340.93321.29241.51341.05050.8032.42630.97091.0058
DEPI 1.12110.95840.77951.54510.74460.96950.98421.32471.10430.9874
SGAI 0.94690.99370.92520.84430.7860.93990.95670.69160.94151.171
LVGI 0.92630.81581.2392.21291.0661.07721.08060.95860.59930.7868
TATA -0.0275-0.0619-0.1150.0252-0.09020.0111-0.3184-0.08150.1315-0.0446
M-score -3.04-2.49-2.98-1.97-2.54-2.36-4.43-2.00-1.56-2.73

Power-One, Inc. Quarterly Data

Dec10Mar11Jun11Sep11Dec11Mar12Jun12Sep12Dec12Mar13
DSRI 0.90980.81010.91150.85190.92471.05941.21611.09780.84140.9458
GMI 0.57960.68010.81911.02821.25171.36491.36891.24861.20911.1694
AQI 0.47920.52930.72170.98471.28211.14220.89270.87410.86980.9285
SGI 2.42632.34371.94441.35540.97090.87590.89370.98361.00581.0035
DEPI 1.32471.68591.69171.28161.10430.92870.85830.94520.98740.9597
SGAI 0.69160.8451.10151.69910.94151.01681.0190.94171.1711.1496
LVGI 0.95860.85250.59410.70320.59930.58790.9450.86630.78680.9464
TATA -0.0815-0.03620.17170.14840.13150.0963-0.0725-0.0617-0.0446-0.0796
M-score -2.00-1.83-0.93-1.59-1.56-1.71-2.57-2.57-2.73-2.85
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