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SunPower Corp (NAS:SPWR)
Beneish M-Score
-2.89 (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 -2.89 suggests that the company is not a manipulator.

SPWR' s 10-Year Beneish M-Score Range
Min: -3.73   Max: -0.76
Current: -2.89

-3.73
-0.76

During the past 13 years, the highest Beneish M-Score of SunPower Corp was -0.76. The lowest was -3.73. And the median was -2.59.


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 * 0.5227+0.528 * 0.4389+0.404 * 1.1735+0.892 * 1.0021+0.115 * 1.1949
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9033+4.679 * 0.0455-0.327 * 1.0059
=-2.89

* 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 $265 Mil.
Revenue was 692.422 + 638.134 + 657.12 + 576.516 = $2,564 Mil.
Gross Profit was 162.989 + 130.668 + 193.23 + 107.861 = $595 Mil.
Total Current Assets was $2,035 Mil.
Total Assets was $3,826 Mil.
Property, Plant and Equipment(Net PPE) was $896 Mil.
Depreciation, Depletion and Amortization(DDA) was $100 Mil.
Selling, General & Admin. Expense(SGA) was $275 Mil.
Total Current Liabilities was $1,505 Mil.
Long-Term Debt was $424 Mil.
Net Income was 65.044 + 22.338 + 108.386 + 19.565 = $215 Mil.
Non Operating Income was 1.369 + -2.632 + -4.159 + 0.443 = $-5 Mil.
Cash Flow from Operations was 50.472 + 32.876 + 28.869 + -66.179 = $46 Mil.
Accounts Receivable was $507 Mil.
Revenue was 635.433 + 678.525 + 648.948 + 595.897 = $2,559 Mil.
Gross Profit was 59.313 + 46.877 + 80.773 + 73.5 = $260 Mil.
Total Current Assets was $1,726 Mil.
Total Assets was $3,163 Mil.
Property, Plant and Equipment(Net PPE) was $806 Mil.
Depreciation, Depletion and Amortization(DDA) was $110 Mil.
Selling, General & Admin. Expense(SGA) was $304 Mil.
Total Current Liabilities was $1,025 Mil.
Long-Term Debt was $559 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)
=(265.402 / 2564.192) / (506.64 / 2558.803)
=0.10350317 / 0.19799883
=0.5227

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)
=(130.668 / 2558.803) / (162.989 / 2564.192)
=0.10179095 / 0.23194363
=0.4389

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 - (2034.827 + 895.858) / 3826.341) / (1 - (1725.715 + 806.143) / 3162.717)
=0.23407637 / 0.19946742
=1.1735

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
=2564.192 / 2558.803
=1.0021

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))
=(109.684 / (109.684 + 806.143)) / (99.795 / (99.795 + 895.858))
=0.11976498 / 0.1002307
=1.1949

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)
=(275.317 / 2564.192) / (304.144 / 2558.803)
=0.10736988 / 0.11886183
=0.9033

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)
=((423.502 + 1505.118) / 3826.341) / ((559.348 + 1025.43) / 3162.717)
=0.50403767 / 0.50108119
=1.0059

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
=(215.333 - -4.979 - 46.038) / 3826.341
=0.0455

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 -2.89 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.

SunPower Corp Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 0.77340.67471.14940.7970.90091.17530.98060.86490.8707
GMI -7.74340.26091.11860.78441.30660.81012.41160.93480.5204
AQI 0.23182.18541.92471.03540.91571.09750.57531.09631.1347
SGI 7.23343.00383.27591.85551.06031.45591.06991.01821.0371
DEPI 0.55871.02770.71261.26930.80710.65991.16071.27711.3128
SGAI 0.25830.66331.52450.8651.03271.16230.96210.91950.8437
LVGI 0.0931.0994.09511.04510.97030.97441.27320.98640.991
TATA -0.10110.12380.0164-0.0191-0.0388-0.0256-0.1466-0.1263-0.0134
M-score -2.15-0.30-0.93-2.05-2.59-2.15-2.61-3.12-2.76

SunPower Corp Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 1.20790.6611.17020.86490.76721.39741.00460.87070.52270.9386
GMI 2.9951.84731.53480.93480.74360.84380.63970.52040.43890.4986
AQI 0.67730.58440.72881.09630.98371.02651.16661.13471.17351.483
SGI 1.04030.95630.88021.01821.05861.0491.07751.03711.00210.9827
DEPI 1.13131.18881.29511.27711.38441.49941.43051.31281.19490.6859
SGAI 0.97110.93681.04080.94240.86690.95540.93060.84370.90330.9542
LVGI 1.12641.11420.91580.98641.02091.08221.05640.9911.00591.0012
TATA -0.2025-0.2161-0.1233-0.1263-0.2157-0.1434-0.0866-0.01340.04550.0544
M-score -2.30-3.57-2.78-3.13-3.73-2.78-2.89-2.76-2.89-2.40
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