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SunPower Corp (NAS:SPWR)
Beneish M-Score
-1.85 (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 -1.85 signals that the company is a manipulator.

SPWR' s 10-Year Beneish M-Score Range
Min: -3.1   Max: -1.85
Current: -1.85

-3.1
-1.85

During the past 13 years, the highest Beneish M-Score of SunPower Corp was -1.85. The lowest was -3.10. And the median was -2.49.


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 * 1.1583+0.528 * 0.9485+0.404 * 1.0441+0.892 * 1.2074+0.115 * 1.0099
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8796+4.679 * 0.0544-0.327 * 0.9097
=-1.85

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
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 $4,357 Mil.
Property, Plant and Equipment(Net PPE) was $992 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 $1,058 Mil.
Net Income was 134.715 + 32.033 + 14.102 + 65.044 = $246 Mil.
Non Operating Income was -1.726 + 0.882 + -0.076 + 1.369 = $0 Mil.
Cash Flow from Operations was 122.349 + -32.418 + -132.043 + 50.472 = $8 Mil.
Accounts Receivable was $361 Mil.
Revenue was 638.134 + 657.12 + 576.516 + 635.433 = $2,507 Mil.
Gross Profit was 130.668 + 193.23 + 107.861 + 59.313 = $491 Mil.
Total Current Assets was $2,188 Mil.
Total Assets was $3,899 Mil.
Property, Plant and Equipment(Net PPE) was $885 Mil.
Depreciation, Depletion and Amortization(DDA) was $98 Mil.
Selling, General & Admin. Expense(SGA) was $271 Mil.
Total Current Liabilities was $1,660 Mil.
Long-Term Debt was $491 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)
=(504.316 / 3027.265) / (360.594 / 2507.203)
=0.1665913 / 0.14382322
=1.1583

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)
=(108.514 / 2507.203) / (259.479 / 3027.265)
=0.19586448 / 0.20649894
=0.9485

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 - (2402.847 + 991.732) / 4357.182) / (1 - (2188.478 + 885.302) / 3898.69)
=0.22092329 / 0.21158646
=1.0441

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
=3027.265 / 2507.203
=1.2074

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))
=(98.191 / (98.191 + 885.302)) / (108.795 / (108.795 + 991.732))
=0.09983904 / 0.09885718
=1.0099

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)
=(288.321 / 3027.265) / (271.481 / 2507.203)
=0.09524141 / 0.10828042
=0.8796

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)
=((1057.762 + 1129.611) / 4357.182) / ((491.051 + 1660.46) / 3898.69)
=0.50201552 / 0.55185485
=0.9097

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
=(245.894 - 0.449 - 8.36) / 4357.182
=0.0544

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 -1.85 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

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 0.77210.89150.82231.60421.17780.87330.8740.77051.40231.1583
GMI 1.53480.93480.74360.84380.63970.52040.43890.49860.80570.9485
AQI 0.72881.09630.98371.02651.16661.1261.17351.4830.87121.0441
SGI 0.88021.01821.05861.0491.07751.03711.00210.98270.98181.2074
DEPI 1.29511.27711.38441.49941.43051.32141.19490.68591.12031.0099
SGAI 1.04080.94240.86690.95540.93060.84370.90330.95420.99370.8796
LVGI 0.91580.98641.02091.08221.05641.03821.00591.00121.04560.9097
TATA -0.1233-0.1263-0.2157-0.1434-0.0866-0.01340.04550.05440.04880.0544
M-score -3.15-3.10-3.68-2.58-2.73-2.78-2.57-2.55-2.05-1.85
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