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SunPower Corp (NAS:SPWR)
Beneish M-Score
-2.52 (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 -2.52 suggests that the company is not a manipulator.

SPWR' s Beneish M-Score Range Over the Past 10 Years
Min: -3.6   Max: 0.44
Current: -2.52

-3.6
0.44

During the past 13 years, the highest Beneish M-Score of SunPower Corp was 0.44. The lowest was -3.60. And the median was -2.46.


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 * 0.4208+0.528 * 0.9705+0.404 * 1.4044+0.892 * 0.9461+0.115 * 0.9475
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1459+4.679 * 0.0854-0.327 * 0.9264
=-2.52

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $207 Mil.
Revenue was 380.218 + 381.02 + 440.871 + 1164.238 = $2,366 Mil.
Gross Profit was 62.644 + 70.881 + 90.818 + 259.479 = $484 Mil.
Total Current Assets was $2,039 Mil.
Total Assets was $4,394 Mil.
Property, Plant and Equipment(Net PPE) was $1,192 Mil.
Depreciation, Depletion and Amortization(DDA) was $131 Mil.
Selling, General & Admin. Expense(SGA) was $314 Mil.
Total Current Liabilities was $1,106 Mil.
Long-Term Debt was $1,113 Mil.
Net Income was -56.326 + 6.509 + -9.581 + 134.715 = $75 Mil.
Non Operating Income was -3.601 + 14.982 + -2.62 + -1.726 = $7 Mil.
Cash Flow from Operations was -103.919 + -212.033 + -113.408 + 122.349 = $-307 Mil.
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.



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)
=(207.073 / 2366.347) / (520.166 / 2501.161)
=0.08750745 / 0.20796982
=0.4208

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)
=(70.881 / 2501.161) / (62.644 / 2366.347)
=0.19843425 / 0.20445945
=0.9705

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 - (2038.652 + 1191.67) / 4394.325) / (1 - (2609.849 + 967.2) / 4408.538)
=0.26488778 / 0.18860879
=1.4044

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
=2366.347 / 2501.161
=0.9461

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))
=(100.191 / (100.191 + 967.2)) / (131.04 / (131.04 + 1191.67))
=0.09386532 / 0.09906933
=0.9475

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)
=(314.343 / 2366.347) / (289.946 / 2501.161)
=0.13283893 / 0.11592456
=1.1459

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)
=((1113.012 + 1105.553) / 4394.325) / ((964.849 + 1437.642) / 4408.538)
=0.50487049 / 0.54496321
=0.9264

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
=(75.317 - 7.035 - -307.011) / 4394.325
=0.0854

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 -2.52 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

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

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
DSRI 1.60421.17780.87330.8740.77051.40231.15831.62851.17440.4208
GMI 0.84380.63970.52040.43890.49860.80570.94851.16431.16430.9705
AQI 1.02651.16661.1261.17351.4830.87121.04411.03150.80681.4044
SGI 1.0491.07751.03711.00210.98270.98181.20741.08251.06140.9461
DEPI 1.49941.43051.32141.19490.68591.12031.00991.04091.67980.9475
SGAI 0.95540.93060.84370.90330.95420.99370.87960.97850.99791.1459
LVGI 1.08221.05641.03821.00591.00121.04560.90970.94670.92780.9264
TATA -0.1434-0.0866-0.01340.04550.05440.04880.05440.08050.08910.0854
M-score -2.58-2.73-2.78-2.57-2.55-2.05-1.85-1.33-1.74-2.52
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