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SunPower Corp (NAS:SPWR)
Beneish M-Score
-1.33 (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 -1.33 signals that the company is a manipulator.

SPWR' s 10-Year Beneish M-Score Range
Min: -3.68   Max: -0.87
Current: -1.33

-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 * 1.6285+0.528 * 1.1643+0.404 * 1.0315+0.892 * 1.0825+0.115 * 1.0409
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9785+4.679 * 0.0805-0.327 * 0.9467
=-1.33

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
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.
Net Income was -9.581 + 134.715 + 32.033 + 14.102 = $171 Mil.
Non Operating Income was -2.62 + -1.726 + 0.882 + -0.076 = $-4 Mil.
Cash Flow from Operations was -113.408 + 122.349 + -32.418 + -132.043 = $-156 Mil.
Accounts Receivable was $265 Mil.
Revenue was 692.422 + 638.134 + 657.12 + 576.516 = $2,564 Mil.
Gross Profit was 162.989 + 130.668 + 193.23 + 107.861 = $595 Mil.
Total Current Assets was $2,035 Mil.
Total Assets was $3,826 Mil.
Property, Plant and Equipment(Net PPE) was $896 Mil.
Depreciation, Depletion and Amortization(DDA) was $100 Mil.
Selling, General & Admin. Expense(SGA) was $275 Mil.
Total Current Liabilities was $1,505 Mil.
Long-Term Debt was $424 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)
=(467.868 / 2775.714) / (265.402 / 2564.192)
=0.16855771 / 0.10350317
=1.6285

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)
=(259.479 / 2564.192) / (90.818 / 2775.714)
=0.23194363 / 0.19921217
=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 - (2061.397 + 1051.047) / 4103.141) / (1 - (2034.827 + 895.858) / 3826.341)
=0.24144844 / 0.23407637
=1.0315

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
=2775.714 / 2564.192
=1.0825

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))
=(99.795 / (99.795 + 895.858)) / (111.987 / (111.987 + 1051.047))
=0.1002307 / 0.09628867
=1.0409

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)
=(291.607 / 2775.714) / (275.317 / 2564.192)
=0.10505657 / 0.10736988
=0.9785

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)
=((1121.139 + 836.709) / 4103.141) / ((423.502 + 1505.118) / 3826.341)
=0.47715835 / 0.50403767
=0.9467

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
=(171.269 - -3.54 - -155.52) / 4103.141
=0.0805

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 -1.33 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

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 0.89150.82231.60421.17780.87330.8740.77051.40231.15831.6285
GMI 0.93480.74360.84380.63970.52040.43890.49860.80570.94851.1643
AQI 1.09630.98371.02651.16661.1261.17351.4830.87121.04411.0315
SGI 1.01821.05861.0491.07751.03711.00210.98270.98181.20741.0825
DEPI 1.27711.38441.49941.43051.32141.19490.68591.12031.00991.0409
SGAI 0.94240.86690.95540.93060.84370.90330.95420.99370.87960.9785
LVGI 0.98641.02091.08221.05641.03821.00591.00121.04560.90970.9467
TATA -0.1263-0.2157-0.1434-0.0866-0.01340.04550.05440.04880.05440.0805
M-score -3.10-3.68-2.58-2.73-2.78-2.57-2.55-2.05-1.85-1.33
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