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SunPower Corp (NAS:SPWR)
Beneish M-Score
-2.72 (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 -2.71 suggests that the company is not a manipulator.

SPWR' s Beneish M-Score Range Over the Past 10 Years
Min: -3.1   Max: -1.06
Current: -2.72

-3.1
-1.06

During the past 13 years, the highest Beneish M-Score of SunPower Corp was -1.06. The lowest was -3.10. 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 * 0.7252+0.528 * 1.3307+0.404 * 1.0709+0.892 * 0.5208+0.115 * 0.9713
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 2.301+4.679 * 0.1099-0.327 * 1.1371
=-2.71

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

This Year (Dec15) TTM:Last Year (Dec14) TTM:
Accounts Receivable was $190 Mil.
Revenue was 374.364 + 380.218 + 381.02 + 440.871 = $1,576 Mil.
Gross Profit was 20.303 + 62.644 + 70.881 + 90.818 = $245 Mil.
Total Current Assets was $2,515 Mil.
Total Assets was $4,857 Mil.
Property, Plant and Equipment(Net PPE) was $736 Mil.
Depreciation, Depletion and Amortization(DDA) was $138 Mil.
Selling, General & Admin. Expense(SGA) was $345 Mil.
Total Current Liabilities was $999 Mil.
Long-Term Debt was $1,590 Mil.
Net Income was -127.621 + -56.326 + 6.509 + -9.581 = $-187 Mil.
Non Operating Income was -3.102 + -3.601 + 14.982 + -2.62 = $6 Mil.
Cash Flow from Operations was -296.871 + -103.919 + -212.033 + -113.408 = $-726 Mil.
Accounts Receivable was $504 Mil.
Revenue was 1164.238 + 662.734 + 507.871 + 692.422 = $3,027 Mil.
Gross Profit was 259.479 + 108.514 + 94.145 + 162.989 = $625 Mil.
Total Current Assets was $2,403 Mil.
Total Assets was $4,346 Mil.
Property, Plant and Equipment(Net PPE) was $601 Mil.
Depreciation, Depletion and Amortization(DDA) was $109 Mil.
Selling, General & Admin. Expense(SGA) was $288 Mil.
Total Current Liabilities was $1,130 Mil.
Long-Term Debt was $907 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)
=(190.448 / 1576.473) / (504.316 / 3027.265)
=0.12080638 / 0.1665913
=0.7252

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)
=(62.644 / 3027.265) / (20.303 / 1576.473)
=0.20649894 / 0.15518566
=1.3307

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 - (2514.52 + 736.302) / 4856.993) / (1 - (2402.847 + 600.819) / 4345.582)
=0.33069247 / 0.30880006
=1.0709

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
=1576.473 / 3027.265
=0.5208

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))
=(108.795 / (108.795 + 600.819)) / (138.007 / (138.007 + 736.302))
=0.15331575 / 0.15784694
=0.9713

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)
=(345.486 / 1576.473) / (288.321 / 3027.265)
=0.21915123 / 0.09524141
=2.301

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)
=((1589.908 + 998.602) / 4856.993) / ((907.136 + 1129.611) / 4345.582)
=0.53294497 / 0.46869372
=1.1371

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
=(-187.019 - 5.659 - -726.231) / 4856.993
=0.1099

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 -2.71 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

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 2.18541.92471.03540.91571.09750.57531.09631.1261.45951.0709
SGI 3.00383.27591.85551.06031.45591.06991.01821.03711.20740.5208
DEPI 1.02770.71261.26930.80710.65991.16071.27711.32140.65120.9713
SGAI 0.66331.52450.8651.03271.16230.96210.91950.84370.87962.301
LVGI 1.0994.09511.04510.97030.97441.27320.98641.03820.84931.1371
TATA 0.12380.0089-0.0191-0.0388-0.0256-0.1466-0.1263-0.01340.05460.1099
M-score -0.30-1.06-2.16-2.46-2.26-2.52-3.10-2.78-1.71-2.71

SunPower Corp Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 1.17780.87330.8740.77051.40231.15831.62851.17440.42080.7252
GMI 0.63970.52040.43890.49860.80570.94851.16431.16430.97051.3307
AQI 1.16661.1261.17351.4830.87121.45951.03150.80681.40441.0709
SGI 1.07751.03711.00210.98270.98181.20741.08251.06140.94610.5208
DEPI 1.43051.32141.19490.68591.12030.65121.04091.67980.94750.9713
SGAI 0.93060.84370.90330.95420.99370.87960.97850.99791.14592.301
LVGI 1.05641.03821.00591.00121.04560.84930.94670.92780.92641.1371
TATA -0.0866-0.01340.04550.05440.04880.05460.08050.08910.08540.1099
M-score -2.73-2.78-2.57-2.55-2.05-1.71-1.33-1.74-2.52-2.71
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