Advanced Energy Industries (STU:AVX) Beneish M-Score : -2.87 (As of Jun. 17, 2024)

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What is Advanced Energy Industries Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.87 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Advanced Energy Industries's Beneish M-Score or its related term are showing as below:

STU:AVX' s Beneish M-Score Range Over the Past 10 Years
Min: -5.73 Med: -2.29 Max: 15.03
Current: -2.87

During the past 13 years, the highest Beneish M-Score of Advanced Energy Industries was 15.03. The lowest was -5.73. And the median was -2.29.

Advanced Energy Industries Beneish M-Score Historical Data

The historical data trend for Advanced Energy Industries's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Advanced Energy Industries Beneish M-Score Chart

Advanced Energy Industries Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-1.71

-2.27

-2.55

-2.11

-2.78

Advanced Energy Industries Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Beneish M-Score	Get a 7-Day Free Trial															-2.26	-2.50	-2.83	-2.78	-2.87

Competitive Comparison of Advanced Energy Industries's Beneish M-Score

For the Electrical Equipment & Parts subindustry, Advanced Energy Industries's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Advanced Energy Industries's Beneish M-Score Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Advanced Energy Industries's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Advanced Energy Industries's Beneish M-Score falls into.

Advanced Energy Industries Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski 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 Advanced Energy Industries for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 1.0439

0.528 * 1.038

0.404 * 0.8263

0.892 * 0.8009

0.115 * 1.0691

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.184

4.679 * -0.023164

0.327 * 1.2457

-2.88

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was €228 Mil.
Revenue was 301.277 + 371.634 + 384.162 + 383.514 = €1,441 Mil.
Gross Profit was 103.803 + 131.008 + 138.059 + 135.755 = €509 Mil.
Total Current Assets was €1,538 Mil.
Total Assets was €2,322 Mil.
Property, Plant and Equipment(Net PPE) was €259 Mil.
Depreciation, Depletion and Amortization(DDA) was €62 Mil.
Selling, General, & Admin. Expense(SGA) was €204 Mil.
Total Current Liabilities was €274 Mil.
Long-Term Debt & Capital Lease Obligation was €912 Mil.
Net Income was 4.799 + 34.389 + 30.66 + 25.05 = €95 Mil.
Non Operating Income was 1.043 + -23.997 + -0.23 + -0.673 = €-24 Mil.
Cash Flow from Operations was 6.7 + 77.032 + 67.95 + 20.863 = €173 Mil.

Total Receivables was €272 Mil.
Revenue was 396.987 + 463.259 + 521.437 + 417.138 = €1,799 Mil.
Gross Profit was 144.874 + 167.856 + 193.13 + 153.401 = €659 Mil.
Total Current Assets was €1,130 Mil.
Total Assets was €1,876 Mil.
Property, Plant and Equipment(Net PPE) was €232 Mil.
Depreciation, Depletion and Amortization(DDA) was €60 Mil.
Selling, General, & Admin. Expense(SGA) was €215 Mil.
Total Current Liabilities was €359 Mil.
Long-Term Debt & Capital Lease Obligation was €410 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total 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)
	=	(227.709 / 1440.587)	/	(272.381 / 1798.821)
	=	0.158067	/	0.151422
	=	1.0439

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)
	=	(659.261 / 1798.821)	/	(508.625 / 1440.587)
	=	0.366496	/	0.353068
	=	1.038

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 Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (1537.888 + 259.09) / 2322.161)	/	(1 - (1130.43 + 232.214) / 1876.127)
	=	0.226161	/	0.273693
	=	0.8263

4. SGI = Sales Growth Index

Ratio of Revenue 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
	=	1440.587	/	1798.821
	=	0.8009

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization 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))
	=	(60.299 / (60.299 + 232.214))	/	(61.89 / (61.89 + 259.09))
	=	0.206141	/	0.192816
	=	1.0691

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales 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)
	=	(204.076 / 1440.587)	/	(215.23 / 1798.821)
	=	0.141662	/	0.119651
	=	1.184

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 in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((912.04 + 274.153) / 2322.161)	/	((410.4 + 358.899) / 1876.127)
	=	0.510814	/	0.410046
	=	1.2457

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
	=	(94.898 - -23.857	-	172.545)	/	2322.161
	=	-0.023164

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Advanced Energy Industries has a M-score of -2.88 suggests that the company is unlikely to be a manipulator.

Advanced Energy Industries Beneish M-Score Related Terms

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Advanced Energy Industries (STU:AVX) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Advanced Energy Industries Inc (STU:AVX) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

AEIS:USA AVX:Germany

Address

1595 Wynkoop Street, Suite 800, Denver, CO, USA, 80202

Website

https://www.advancedenergy.com

Advanced Energy Industries Inc provides precision power-conversion measurement and control solutions that transform power into various forms for use in manufacturing and industrial equipment and applications. The firm serves original equipment manufacturers and end customers in the semiconductor, flat panel display, solar panel, and other industrial capital equipment markets. Products include thin-film power-conversion systems, which control and modify raw electrical power into a customizable, predictable power source, and power control modules, which control and measure temperature during manufacturing cycles. A majority of the firm's revenue is generated in the United States, with the rest primarily from Asia and Europe.