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Broadwind Energy Inc (NAS:BWEN)
Beneish M-Score
-3.34 (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.

Broadwind Energy Inc has a M-score of -3.34 suggests that the company is not a manipulator.

BWEN' s Beneish M-Score Range Over the Past 10 Years
Min: -5.73   Max: 16.14
Current: -3.34

-5.73
16.14

During the past 13 years, the highest Beneish M-Score of Broadwind Energy Inc was 16.14. The lowest was -5.73. And the median was -2.87.


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 Broadwind Energy Inc 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 * 0.9638+0.528 * 2.7353+0.404 * 1.1066+0.892 * 0.8207+0.115 * 0.9814
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0914+4.679 * -0.338-0.327 * 1.0946
=-3.34

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $16.9 Mil.
Revenue was 43.38 + 46.757 + 37.573 + 49.791 = $177.5 Mil.
Gross Profit was 4.142 + 3.962 + -6.209 + 2.831 = $4.7 Mil.
Total Current Assets was $52.0 Mil.
Total Assets was $108.5 Mil.
Property, Plant and Equipment(Net PPE) was $51.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $8.2 Mil.
Selling, General & Admin. Expense(SGA) was $16.4 Mil.
Total Current Liabilities was $36.0 Mil.
Long-Term Debt was $3.1 Mil.
Net Income was -0.474 + -0.377 + -10.794 + -7.613 = $-19.3 Mil.
Non Operating Income was 0.005 + 0.012 + 0.461 + -0.064 = $0.4 Mil.
Cash Flow from Operations was -1.273 + 3.061 + 9.216 + 5.989 = $17.0 Mil.
Accounts Receivable was $21.3 Mil.
Revenue was 62.563 + 49.229 + 49.192 + 55.295 = $216.3 Mil.
Gross Profit was 8.499 + 2.745 + 0.494 + 4.013 = $15.8 Mil.
Total Current Assets was $67.7 Mil.
Total Assets was $132.1 Mil.
Property, Plant and Equipment(Net PPE) was $58.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $9.1 Mil.
Selling, General & Admin. Expense(SGA) was $18.3 Mil.
Total Current Liabilities was $36.4 Mil.
Long-Term Debt was $7.0 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)
=(16.866 / 177.501) / (21.323 / 216.279)
=0.09501918 / 0.09859025
=0.9638

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)
=(15.751 / 216.279) / (4.726 / 177.501)
=0.07282723 / 0.0266252
=2.7353

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 - (52.028 + 51.31) / 108.468) / (1 - (67.696 + 58.721) / 132.061)
=0.04729505 / 0.04273783
=1.1066

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
=177.501 / 216.279
=0.8207

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))
=(9.14 / (9.14 + 58.721)) / (8.162 / (8.162 + 51.31))
=0.13468708 / 0.13724105
=0.9814

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)
=(16.425 / 177.501) / (18.337 / 216.279)
=0.09253469 / 0.08478401
=1.0914

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)
=((3.051 + 36.034) / 108.468) / ((7.029 + 36.444) / 132.061)
=0.36033669 / 0.32918878
=1.0946

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
=(-19.258 - 0.414 - 16.993) / 108.468
=-0.338

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.

Broadwind Energy Inc has a M-score of -3.34 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.

Broadwind Energy Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 11.35270.37180.70221.31960.87010.69830.91320.86890.651
GMI -1.50270.86072.38374.53150.36761.19190.56690.65622.2079
AQI 4.17890.66110.60690.3040.88380.98490.87431.39460.6921
SGI 7.40847.29170.85030.74081.35761.13371.02371.04690.8819
DEPI 1.85830.430.91931.06490.94380.82840.96891.12361.0483
SGAI 0.61760.99540.91781.1410.70730.72510.96690.84441.0944
LVGI 0.16670.76851.03030.97721.02790.83541.50370.94790.9591
TATA -0.0187-0.0598-0.5198-0.3971-0.0675-0.113-0.2482-0.0845-0.1521
M-score 13.072.07-4.75-2.70-2.94-2.99-4.14-2.92-3.10

Broadwind Energy Inc Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 0.79050.96290.95460.8470.95260.97430.79770.66780.64410.9638
GMI 0.50360.51190.61260.72720.93231.15151.20481.99241.54862.7353
AQI 1.08191.22210.76711.39460.80120.82061.15810.69211.16071.1066
SGI 1.1351.2321.16971.0740.96980.88480.88240.85970.88560.8207
DEPI 1.02191.13081.12281.12361.21191.22341.08351.04830.98720.9814
SGAI 0.91460.88110.87930.87420.90230.92330.97211.05711.01911.0914
LVGI 1.04060.93650.99740.94791.0230.98120.90140.95910.94881.0946
TATA -0.1785-0.0515-0.1332-0.0854-0.0632-0.04910.0281-0.1521-0.3245-0.338
M-score -3.61-2.66-3.26-2.89-2.93-2.78-2.42-3.21-4.06-3.34
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