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SunPower Corp (NAS:SPWR)
Beneish M-Score
-1.74 (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 -1.74 signals that the company is a manipulator.

SPWR' s 10-Year Beneish M-Score Range
Min: -3.68   Max: -0.87
Current: -1.74

-3.68
-0.87

During the past 13 years, the highest Beneish M-Score of SunPower Corp was -0.87. The lowest was -3.68. And the median was -2.47.


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 * 1.1744+0.528 * 1.1643+0.404 * 0.8068+0.892 * 1.0614+0.115 * 1.6798
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9979+4.679 * 0.0891-0.327 * 0.9278
=-1.74

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

This Year (Jun15) TTM:Last Year (Jun14) TTM:
Accounts Receivable was $434 Mil.
Revenue was 381.02 + 440.871 + 1164.238 + 662.734 = $2,649 Mil.
Gross Profit was 70.881 + 90.818 + 259.479 + 108.514 = $530 Mil.
Total Current Assets was $2,172 Mil.
Total Assets was $4,349 Mil.
Property, Plant and Equipment(Net PPE) was $1,145 Mil.
Depreciation, Depletion and Amortization(DDA) was $119 Mil.
Selling, General & Admin. Expense(SGA) was $302 Mil.
Total Current Liabilities was $1,114 Mil.
Long-Term Debt was $1,072 Mil.
Net Income was 6.509 + -9.581 + 134.715 + 32.033 = $164 Mil.
Non Operating Income was 14.982 + -2.62 + -1.726 + 0.882 = $12 Mil.
Cash Flow from Operations was -212.033 + -113.408 + 122.349 + -32.418 = $-236 Mil.
Accounts Receivable was $348 Mil.
Revenue was 507.871 + 692.422 + 638.134 + 657.12 = $2,496 Mil.
Gross Profit was 94.145 + 162.989 + 130.668 + 193.23 = $581 Mil.
Total Current Assets was $2,525 Mil.
Total Assets was $4,322 Mil.
Property, Plant and Equipment(Net PPE) was $526 Mil.
Depreciation, Depletion and Amortization(DDA) was $99 Mil.
Selling, General & Admin. Expense(SGA) was $285 Mil.
Total Current Liabilities was $1,375 Mil.
Long-Term Debt was $967 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)
=(433.627 / 2648.863) / (347.852 / 2495.547)
=0.16370307 / 0.13938908
=1.1744

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)
=(90.818 / 2495.547) / (70.881 / 2648.863)
=0.23282751 / 0.19996957
=1.1643

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 - (2172.113 + 1145.361) / 4348.523) / (1 - (2525.4 + 526.494) / 4321.972)
=0.23710326 / 0.29386539
=0.8068

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
=2648.863 / 2495.547
=1.0614

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))
=(99.228 / (99.228 + 526.494)) / (119.403 / (119.403 + 1145.361))
=0.15858161 / 0.09440734
=1.6798

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)
=(301.628 / 2648.863) / (284.781 / 2495.547)
=0.11387074 / 0.11411566
=0.9979

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)
=((1072.35 + 1113.96) / 4348.523) / ((966.625 + 1375.378) / 4321.972)
=0.50277071 / 0.54188296
=0.9278

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
=(163.676 - 11.518 - -235.51) / 4348.523
=0.0891

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 -1.74 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 own currency.

SunPower Corp Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 0.77340.67471.04780.68221.04511.05221.07550.89150.87331.1583
GMI -7.74340.26091.11860.78441.30660.81012.41160.93480.52040.9485
AQI 0.23182.18541.92471.03540.91571.09750.57531.09631.1261.0441
SGI 7.23343.00383.27591.85551.06031.45591.06991.01821.03711.2074
DEPI 0.55871.02770.71261.26930.80710.65991.16071.27711.32141.0099
SGAI 0.25830.66331.52450.8651.03271.16230.96210.91950.84370.8796
LVGI 0.0931.0994.09511.04510.97030.97441.27320.98641.03820.9097
TATA -0.10110.12380.0164-0.0191-0.0388-0.0256-0.1466-0.1263-0.01340.0544
M-score -2.15-0.30-1.03-2.16-2.46-2.26-2.52-3.10-2.78-1.85

SunPower Corp Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 0.82231.60421.17780.87330.8740.77051.40231.15831.62851.1744
GMI 0.74360.84380.63970.52040.43890.49860.80570.94851.16431.1643
AQI 0.98371.02651.16661.1261.17351.4830.87121.04411.03150.8068
SGI 1.05861.0491.07751.03711.00210.98270.98181.20741.08251.0614
DEPI 1.38441.49941.43051.32141.19490.68591.12031.00991.04091.6798
SGAI 0.86690.95540.93060.84370.90330.95420.99370.87960.97850.9979
LVGI 1.02091.08221.05641.03821.00591.00121.04560.90970.94670.9278
TATA -0.2157-0.1434-0.0866-0.01340.04550.05440.04880.05440.08050.0891
M-score -3.68-2.58-2.73-2.78-2.57-2.55-2.05-1.85-1.33-1.74
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