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SunPower Corp (NAS:SPWR)
Beneish M-Score
-2.39 (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 -2.39 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: -2.39

-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 * 0.6924+0.528 * 1.4749+0.404 * 1.4152+0.892 * 0.5478+0.115 * 0.6102
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 2.2917+4.679 * 0.1485-0.327 * 1.2223
=-2.39

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $177 Mil.
Revenue was 384.875 + 374.364 + 380.218 + 381.02 = $1,520 Mil.
Gross Profit was 51.537 + 20.303 + 62.644 + 70.881 = $205 Mil.
Total Current Assets was $2,374 Mil.
Total Assets was $4,835 Mil.
Property, Plant and Equipment(Net PPE) was $809 Mil.
Depreciation, Depletion and Amortization(DDA) was $152 Mil.
Selling, General & Admin. Expense(SGA) was $366 Mil.
Total Current Liabilities was $1,055 Mil.
Long-Term Debt was $1,765 Mil.
Net Income was -85.409 + -127.621 + -56.326 + 6.509 = $-263 Mil.
Non Operating Income was -6.232 + -3.102 + -3.601 + 14.982 = $2 Mil.
Cash Flow from Operations was -369.901 + -296.871 + -103.919 + -212.033 = $-983 Mil.
Accounts Receivable was $468 Mil.
Revenue was 440.871 + 1164.238 + 662.734 + 507.871 = $2,776 Mil.
Gross Profit was 90.818 + 259.479 + 108.514 + 94.145 = $553 Mil.
Total Current Assets was $2,061 Mil.
Total Assets was $4,103 Mil.
Property, Plant and Equipment(Net PPE) was $1,051 Mil.
Depreciation, Depletion and Amortization(DDA) was $112 Mil.
Selling, General & Admin. Expense(SGA) was $292 Mil.
Total Current Liabilities was $837 Mil.
Long-Term Debt was $1,121 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)
=(177.443 / 1520.477) / (467.868 / 2775.714)
=0.11670219 / 0.16855771
=0.6924

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)
=(20.303 / 2775.714) / (51.537 / 1520.477)
=0.19921217 / 0.13506617
=1.4749

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 - (2373.9 + 808.844) / 4834.855) / (1 - (2061.397 + 1051.047) / 4103.141)
=0.34170849 / 0.24144844
=1.4152

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
=1520.477 / 2775.714
=0.5478

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))
=(111.987 / (111.987 + 1051.047)) / (151.561 / (151.561 + 808.844))
=0.09628867 / 0.15780947
=0.6102

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)
=(366.063 / 1520.477) / (291.607 / 2775.714)
=0.24075537 / 0.10505657
=2.2917

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)
=((1765.293 + 1054.545) / 4834.855) / ((1121.139 + 836.709) / 4103.141)
=0.58323114 / 0.47715835
=1.2223

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
=(-262.847 - 2.047 - -982.724) / 4834.855
=0.1485

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 -2.39 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 0.67471.04780.68351.04321.05221.10430.86830.87331.15830.7252
GMI 0.26091.11860.75271.36170.81012.32830.96820.52040.94851.3307
AQI 2.18541.92471.03540.91571.09750.57531.09631.1261.45951.0709
SGI 3.00383.27591.8521.06231.45591.0421.04541.03711.20740.5208
DEPI 1.02770.71261.26540.80960.65991.1771.25941.32140.65120.9713
SGAI 0.66331.52450.86661.03081.16230.95310.92820.84370.87962.301
LVGI 1.0994.09511.04510.97030.97441.27320.98641.03820.84931.1371
TATA 0.10990.0089-0.0164-0.0386-0.0255-0.1354-0.1263-0.01340.05460.1099
M-score -0.36-1.06-2.17-2.43-2.26-2.51-3.08-2.78-1.71-2.71

SunPower Corp Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 0.87330.8740.77051.40231.15831.62851.17440.42080.72520.6924
GMI 0.52040.43890.49860.80570.94851.16431.16430.97051.33071.4749
AQI 1.1261.17351.4830.87121.45951.03150.80681.40441.07091.4152
SGI 1.03711.00210.98270.98181.20741.08251.06140.94610.52080.5478
DEPI 1.32141.19490.68591.12030.65121.04091.67980.94750.97130.6102
SGAI 0.84370.90330.95420.99370.87960.97850.99791.14592.3012.2917
LVGI 1.03821.00591.00121.04560.84930.94670.92780.92641.13711.2223
TATA -0.01340.04550.05440.04880.05460.08050.08910.08540.10990.1485
M-score -2.78-2.57-2.55-2.05-1.71-1.33-1.74-2.52-2.71-2.39
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