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SunPower Corp (NAS:SPWR)
Beneish M-Score
-1.52 (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.

SunPower Corp has a M-score of -1.52 signals that the company is a manipulator.

SPWR' s Beneish M-Score Range Over the Past 10 Years
Min: -3.68   Max: 0.34
Current: -1.52

-3.68
0.34

During the past 13 years, the highest Beneish M-Score of SunPower Corp was 0.34. The lowest was -3.68. 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 SunPower Corp 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 * 1.3399+0.528 * 1.6106+0.404 * 0.6633+0.892 * 0.8067+0.115 * 1.2232
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.4519+4.679 * 0.1623-0.327 * 1.2358
=-1.52

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $224 Mil.
Revenue was 729.346 + 420.452 + 384.875 + 374.364 = $1,909 Mil.
Gross Profit was 129.208 + 41.294 + 51.537 + 20.303 = $242 Mil.
Total Current Assets was $2,346 Mil.
Total Assets was $5,097 Mil.
Property, Plant and Equipment(Net PPE) was $1,855 Mil.
Depreciation, Depletion and Amortization(DDA) was $163 Mil.
Selling, General & Admin. Expense(SGA) was $368 Mil.
Total Current Liabilities was $1,443 Mil.
Long-Term Debt was $1,737 Mil.
Net Income was -40.545 + -69.992 + -85.409 + -127.621 = $-324 Mil.
Non Operating Income was -40.228 + -5.822 + -6.232 + -3.102 = $-55 Mil.
Cash Flow from Operations was -128.346 + -300.091 + -369.901 + -296.871 = $-1,095 Mil.
Accounts Receivable was $207 Mil.
Revenue was 380.218 + 381.02 + 440.871 + 1164.238 = $2,366 Mil.
Gross Profit was 62.644 + 70.881 + 90.818 + 259.479 = $484 Mil.
Total Current Assets was $2,039 Mil.
Total Assets was $4,394 Mil.
Property, Plant and Equipment(Net PPE) was $1,192 Mil.
Depreciation, Depletion and Amortization(DDA) was $131 Mil.
Selling, General & Admin. Expense(SGA) was $314 Mil.
Total Current Liabilities was $1,106 Mil.
Long-Term Debt was $1,113 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)
=(223.836 / 1909.037) / (207.073 / 2366.347)
=0.11725074 / 0.08750745
=1.3399

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)
=(483.822 / 2366.347) / (242.342 / 1909.037)
=0.20445945 / 0.12694463
=1.6106

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 - (2346.186 + 1855.051) / 5096.67) / (1 - (2038.652 + 1191.67) / 4394.325)
=0.17568981 / 0.26488778
=0.6633

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
=1909.037 / 2366.347
=0.8067

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))
=(131.04 / (131.04 + 1191.67)) / (163.48 / (163.48 + 1855.051))
=0.09906933 / 0.08098959
=1.2232

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)
=(368.187 / 1909.037) / (314.343 / 2366.347)
=0.1928653 / 0.13283893
=1.4519

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)
=((1736.861 + 1443.167) / 5096.67) / ((1113.012 + 1105.553) / 4394.325)
=0.6239423 / 0.50487049
=1.2358

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
=(-323.567 - -55.384 - -1095.209) / 5096.67
=0.1623

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.

SunPower Corp has a M-score of -1.52 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 local exchange's currency.

SunPower Corp Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.67471.04780.68221.04511.05221.07550.89150.87331.15830.7252
GMI 0.26091.11860.78441.30660.81012.41160.93480.52040.94851.3307
AQI 2.18541.92471.03540.91571.09750.57531.09631.1261.45950.7165
SGI 3.00383.27591.85551.06031.45591.06991.01821.03711.20740.5208
DEPI 1.02770.71261.26930.80710.65991.16071.27711.32140.65121.5618
SGAI 0.66331.52450.8651.03271.16230.96210.91950.84370.87962.301
LVGI 1.0994.09511.04510.97030.97441.27320.98641.03820.84931.205
TATA 0.12380.0089-0.0191-0.0388-0.0256-0.1466-0.1263-0.01340.05460.1099
M-score -0.30-1.06-2.16-2.46-2.26-2.52-3.10-2.78-1.71-2.81

SunPower Corp Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 0.77051.40231.15831.62851.17440.42080.72520.69240.82921.3399
GMI 0.49860.80570.94851.16431.16430.97051.33071.47491.77461.6106
AQI 1.4830.87121.45951.03150.80681.40440.71651.41520.93520.6633
SGI 0.98270.98181.20741.08251.06140.94610.52080.54780.58890.8067
DEPI 0.68591.12030.65121.04091.67980.94751.56180.61020.93831.2232
SGAI 0.95420.99370.87960.97850.99791.14592.3012.29172.07861.4519
LVGI 1.00121.04560.84930.94670.92780.92641.2051.22231.23741.2358
TATA 0.05440.04880.05460.08050.08910.08540.10990.14850.14420.1623
M-score -2.55-2.05-1.71-1.33-1.74-2.52-2.81-2.39-2.22-1.52
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