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Polar Power (Polar Power) Beneish M-Score : -2.09 (As of May. 10, 2024)


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What is Polar Power 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 -2.09 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

POLA' s Beneish M-Score Range Over the Past 10 Years
Min: -3.65   Med: -2.56   Max: 1.63
Current: -2.09

During the past 10 years, the highest Beneish M-Score of Polar Power was 1.63. The lowest was -3.65. And the median was -2.56.


Polar Power Beneish M-Score Historical Data

The historical data trend for Polar Power'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.

* Premium members only.

Polar Power Beneish M-Score Chart

Polar Power Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -3.65 1.63 -2.60 -2.60 -2.09

Polar Power Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.60 -2.29 -1.94 -2.04 -2.09

Competitive Comparison of Polar Power's Beneish M-Score

For the Electrical Equipment & Parts subindustry, Polar Power'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.


Polar Power's Beneish M-Score Distribution in the Industrial Products Industry

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

* The bar in red indicates where Polar Power's Beneish M-Score falls into.



Polar Power 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 Polar Power 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 * 0.934+0.528 * 2.9122+0.404 * 1.1121+0.892 * 0.9525+0.115 * 3.6183
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9254+4.679 * -0.123441-0.327 * 1.9241
=-2.09

* 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.

This Year (Dec23) TTM:Last Year (Dec22) TTM:
Total Receivables was $4.46 Mil.
Revenue was 3.605 + 1.911 + 5.587 + 4.19 = $15.29 Mil.
Gross Profit was -1.427 + -0.108 + 1.475 + 0.755 = $0.70 Mil.
Total Current Assets was $21.99 Mil.
Total Assets was $25.26 Mil.
Property, Plant and Equipment(Net PPE) was $3.16 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.39 Mil.
Selling, General, & Admin. Expense(SGA) was $5.46 Mil.
Total Current Liabilities was $10.21 Mil.
Long-Term Debt & Capital Lease Obligation was $1.86 Mil.
Net Income was -3.155 + -1.844 + -0.436 + -1.113 = $-6.55 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was -0.346 + -0.28 + -1.648 + -1.156 = $-3.43 Mil.
Total Receivables was $5.02 Mil.
Revenue was 6.366 + 1.707 + 4.274 + 3.709 = $16.06 Mil.
Gross Profit was 0.406 + -0.247 + 1.061 + 0.905 = $2.13 Mil.
Total Current Assets was $23.32 Mil.
Total Assets was $24.19 Mil.
Property, Plant and Equipment(Net PPE) was $0.78 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.51 Mil.
Selling, General, & Admin. Expense(SGA) was $6.20 Mil.
Total Current Liabilities was $5.95 Mil.
Long-Term Debt & Capital Lease Obligation was $0.06 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)
=(4.463 / 15.293) / (5.017 / 16.056)
=0.291833 / 0.312469
=0.934

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)
=(2.125 / 16.056) / (0.695 / 15.293)
=0.132349 / 0.045446
=2.9122

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 - (21.989 + 3.162) / 25.259) / (1 - (23.317 + 0.778) / 24.188)
=0.004276 / 0.003845
=1.1121

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
=15.293 / 16.056
=0.9525

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))
=(0.507 / (0.507 + 0.778)) / (0.387 / (0.387 + 3.162))
=0.394553 / 0.109045
=3.6183

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)
=(5.463 / 15.293) / (6.198 / 16.056)
=0.357222 / 0.386024
=0.9254

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)
=((1.856 + 10.214) / 25.259) / ((0.057 + 5.95) / 24.188)
=0.477849 / 0.248346
=1.9241

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
=(-6.548 - 0 - -3.43) / 25.259
=-0.123441

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.

Polar Power has a M-score of -2.09 suggests that the company is unlikely to be a manipulator.


Polar Power Beneish M-Score Related Terms

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Polar Power (Polar Power) Business Description

Traded in Other Exchanges
Address
249 East Gardena Boulevard, Gardena, CA, USA, 90248
Polar Power Inc is engaged in designing, manufacture, and sell DC power generators, renewable energy and cooling systems for applications primarily in the telecommunications market and, to a lesser extent, in other markets, including military, electric vehicle, marine and industrial. The company's products include DC generators, Back-up DC generators, hybrid power systems, Li-Ion battery systems, and Marine DC generators. The Companie's geographical presence is in United States, Canada, Mexico, South Pacific Islands, Japan, Europe and Middle East and Other Asia Pacific countries.
Executives
Keith Albrecht director 249 E. GARDENA BOULEVARD, GARDENA CA 90248
Arthur D. Sams director, 10 percent owner, officer: President, CEO, Secretary 249 E. GARDENA BOULEVARD, GARDENA CA 90248
Rajesh Masina officer: Chief Operating Officer 249 E. GARDENA BOULEVARD, GARDENA CA 90248
Luis Zavala officer: Chief Financial Officer 249 E. GARDENA BOULEVARD, GARDENA CA 90248
Peter Gross director 249 E. GARDENA BLVD., GARDENA CA 90248
Matthew Goldman director 249 E. GARDENA BOULEVARD, GARDENA CA 90248