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SunPower Corp (NAS:SPWR)
Beneish M-Score
-2.22 (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 -2.22 suggests that the company is not a manipulator.

SPWR' s Beneish M-Score Range Over the Past 10 Years
Min: -3.68   Max: 0.34
Current: -2.22

-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 -2.47.


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 * 0.8292+0.528 * 1.7746+0.404 * 0.9352+0.892 * 0.5889+0.115 * 0.9383
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 2.0786+4.679 * 0.1442-0.327 * 1.2374
=-2.22

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $212 Mil.
Revenue was 420.452 + 384.875 + 374.364 + 380.218 = $1,560 Mil.
Gross Profit was 41.294 + 51.537 + 20.303 + 62.644 = $176 Mil.
Total Current Assets was $2,609 Mil.
Total Assets was $5,201 Mil.
Property, Plant and Equipment(Net PPE) was $1,439 Mil.
Depreciation, Depletion and Amortization(DDA) was $161 Mil.
Selling, General & Admin. Expense(SGA) was $369 Mil.
Total Current Liabilities was $1,377 Mil.
Long-Term Debt was $1,859 Mil.
Net Income was -69.992 + -85.409 + -127.621 + -56.326 = $-339 Mil.
Non Operating Income was -5.822 + -6.232 + -3.102 + -3.601 = $-19 Mil.
Cash Flow from Operations was -300.091 + -369.901 + -296.871 + -103.919 = $-1,071 Mil.
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.



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)
=(211.753 / 1559.909) / (433.627 / 2648.863)
=0.13574702 / 0.16370307
=0.8292

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)
=(529.692 / 2648.863) / (175.778 / 1559.909)
=0.19996957 / 0.11268478
=1.7746

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 - (2608.632 + 1439.259) / 5201.164) / (1 - (2172.113 + 1145.361) / 4348.523)
=0.22173364 / 0.23710326
=0.9352

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
=1559.909 / 2648.863
=0.5889

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))
=(119.403 / (119.403 + 1145.361)) / (161.017 / (161.017 + 1439.259))
=0.09440734 / 0.10061827
=0.9383

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)
=(369.226 / 1559.909) / (301.628 / 2648.863)
=0.23669714 / 0.11387074
=2.0786

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)
=((1858.636 + 1377.075) / 5201.164) / ((1072.35 + 1113.96) / 4348.523)
=0.62211286 / 0.50277071
=1.2374

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
=(-339.348 - -18.757 - -1070.782) / 5201.164
=0.1442

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 -2.22 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

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 0.8740.77051.40231.15831.62851.17440.42080.72520.69240.8292
GMI 0.43890.49860.80570.94851.16431.16430.97051.33071.47491.7746
AQI 1.17351.4830.87121.45951.03150.80681.40441.07091.41520.9352
SGI 1.00210.98270.98181.20741.08251.06140.94610.52080.54780.5889
DEPI 1.19490.68591.12030.65121.04091.67980.94750.97130.61020.9383
SGAI 0.90330.95420.99370.87960.97850.99791.14592.3012.29172.0786
LVGI 1.00591.00121.04560.84930.94670.92780.92641.13711.22231.2374
TATA 0.04550.05440.04880.05460.08050.08910.08540.10990.14850.1442
M-score -2.57-2.55-2.05-1.71-1.33-1.74-2.52-2.71-2.39-2.22
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