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SunPower Corp (NAS:SPWR)
Beneish M-Score
-2.05 (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 -2.05 signals that the company is a manipulator.

SPWR' s 10-Year Beneish M-Score Range
Min: -3.68   Max: -0.87
Current: -2.05

-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 -2.51.


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 * 1.4023+0.528 * 0.8057+0.404 * 0.8712+0.892 * 0.9818+0.115 * 1.1203
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9937+4.679 * 0.0488-0.327 * 1.0456
=-2.05

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $520 Mil.
Revenue was 662.734 + 507.871 + 692.422 + 638.134 = $2,501 Mil.
Gross Profit was 108.514 + 94.145 + 162.989 + 130.668 = $496 Mil.
Total Current Assets was $2,610 Mil.
Total Assets was $4,409 Mil.
Property, Plant and Equipment(Net PPE) was $967 Mil.
Depreciation, Depletion and Amortization(DDA) was $100 Mil.
Selling, General & Admin. Expense(SGA) was $290 Mil.
Total Current Liabilities was $1,438 Mil.
Long-Term Debt was $965 Mil.
Net Income was 32.033 + 14.102 + 65.044 + 22.338 = $134 Mil.
Non Operating Income was 0.882 + -0.076 + 1.369 + -2.632 = $-0 Mil.
Cash Flow from Operations was -32.418 + -132.043 + 50.472 + 32.876 = $-81 Mil.
Accounts Receivable was $378 Mil.
Revenue was 657.12 + 576.516 + 635.433 + 678.525 = $2,548 Mil.
Gross Profit was 193.23 + 107.861 + 59.313 + 46.877 = $407 Mil.
Total Current Assets was $2,094 Mil.
Total Assets was $3,759 Mil.
Property, Plant and Equipment(Net PPE) was $851 Mil.
Depreciation, Depletion and Amortization(DDA) was $100 Mil.
Selling, General & Admin. Expense(SGA) was $297 Mil.
Total Current Liabilities was $1,345 Mil.
Long-Term Debt was $615 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)
=(520.166 / 2501.161) / (377.824 / 2547.594)
=0.20796982 / 0.14830621
=1.4023

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)
=(94.145 / 2547.594) / (108.514 / 2501.161)
=0.15986888 / 0.19843425
=0.8057

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 - (2609.849 + 967.2) / 4408.538) / (1 - (2093.891 + 851.344) / 3759.092)
=0.18860879 / 0.21650361
=0.8712

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
=2501.161 / 2547.594
=0.9818

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))
=(100.048 / (100.048 + 851.344)) / (100.191 / (100.191 + 967.2))
=0.1051596 / 0.09386532
=1.1203

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)
=(289.946 / 2501.161) / (297.214 / 2547.594)
=0.11592456 / 0.11666459
=0.9937

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)
=((964.849 + 1437.642) / 4408.538) / ((614.526 + 1344.664) / 3759.092)
=0.54496321 / 0.52118703
=1.0456

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
=(133.517 - -0.457 - -81.113) / 4408.538
=0.0488

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 -2.05 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 0.77340.67471.04780.68221.04511.05221.07550.89150.8733
GMI -7.74340.26091.11860.78441.30660.81012.41160.93480.5204
AQI 0.23182.18541.92471.03540.91571.09750.57531.09631.1347
SGI 7.23343.00383.27591.85551.06031.45591.06991.01821.0371
DEPI 0.55871.02770.71261.26930.80710.65991.16071.27711.3128
SGAI 0.25830.66331.52450.8651.03271.16230.96210.91950.8437
LVGI 0.0931.0994.09511.04510.97030.97441.27320.98640.991
TATA -0.10110.12380.0164-0.0191-0.0388-0.0256-0.1466-0.1263-0.0134
M-score -2.15-0.30-1.03-2.16-2.46-2.26-2.52-3.10-2.76

SunPower Corp Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.72090.77210.89150.82231.60421.17780.87330.8740.77051.4023
GMI 1.84731.53480.93480.74360.84380.63970.52040.43890.49860.8057
AQI 0.58440.72881.09630.98371.02651.16661.13471.17351.4830.8712
SGI 0.95630.88021.01821.05861.0491.07751.03711.00210.98270.9818
DEPI 1.18881.29511.27711.38441.49941.43051.31281.19490.68591.1203
SGAI 0.93681.04080.94240.86690.95540.93060.84370.90330.95420.9937
LVGI 1.11420.91580.98641.02091.08221.05640.9911.00591.00121.0456
TATA -0.2161-0.1233-0.1263-0.2157-0.1434-0.0866-0.01340.04550.05440.0488
M-score -3.51-3.15-3.10-3.68-2.58-2.73-2.76-2.57-2.55-2.05
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