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Broadwind Energy Inc (NAS:BWEN)
Beneish M-Score
-2.66 (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 -2.66 suggests that the company is not a manipulator.

BWEN' s 10-Year Beneish M-Score Range
Min: -13.43   Max: 13.34
Current: -2.66

-13.43
13.34

During the past 13 years, the highest Beneish M-Score of Broadwind Energy Inc was 13.34. The lowest was -13.43. And the median was -2.80.


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 * 0.9629+0.528 * 0.5119+0.404 * 1.2221+0.892 * 1.232+0.115 * 1.1308
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8811+4.679 * -0.0515-0.327 * 0.9365
=-2.66

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was $24.7 Mil.
Revenue was 68.381 + 58.8 + 56.397 + 60.862 = $244.4 Mil.
Gross Profit was 8.631 + 5.093 + 2.156 + 4.618 = $20.5 Mil.
Total Current Assets was $76.7 Mil.
Total Assets was $150.9 Mil.
Property, Plant and Equipment(Net PPE) was $66.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $13.1 Mil.
Selling, General & Admin. Expense(SGA) was $22.4 Mil.
Total Current Liabilities was $47.3 Mil.
Long-Term Debt was $3.3 Mil.
Net Income was 1.86 + -1.043 + -3.746 + -2.398 = $-5.3 Mil.
Non Operating Income was -0.016 + 0.136 + 0.402 + -0.005 = $0.5 Mil.
Cash Flow from Operations was 1.571 + -12.117 + 4.747 + 7.731 = $1.9 Mil.
Accounts Receivable was $20.9 Mil.
Revenue was 52.945 + 45.506 + 44.908 + 55.045 = $198.4 Mil.
Gross Profit was 3.401 + 2.17 + 0.23 + 2.715 = $8.5 Mil.
Total Current Assets was $80.0 Mil.
Total Assets was $159.8 Mil.
Property, Plant and Equipment(Net PPE) was $73.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $16.7 Mil.
Selling, General & Admin. Expense(SGA) was $20.7 Mil.
Total Current Liabilities was $54.1 Mil.
Long-Term Debt was $3.2 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)
=(24.736 / 244.44) / (20.851 / 198.404)
=0.10119457 / 0.10509365
=0.9629

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)
=(5.093 / 198.404) / (8.631 / 244.44)
=0.04292252 / 0.08385698
=0.5119

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 - (76.666 + 66.336) / 150.859) / (1 - (80.035 + 72.972) / 159.818)
=0.05208175 / 0.04261723
=1.2221

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
=244.44 / 198.404
=1.232

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))
=(16.71 / (16.71 + 72.972)) / (13.087 / (13.087 + 66.336))
=0.18632502 / 0.16477595
=1.1308

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)
=(22.446 / 244.44) / (20.678 / 198.404)
=0.09182622 / 0.10422169
=0.8811

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)
=((3.335 + 47.28) / 150.859) / ((3.203 + 54.054) / 159.818)
=0.33551197 / 0.35826378
=0.9365

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
=(-5.327 - 0.517 - 1.932) / 150.859
=-0.0515

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 -2.66 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 0.437311.35270.37180.6561.41260.87010.69830.9132
GMI 5.227-1.50270.86072.57374.19710.36761.19190.5669
AQI 27.14444.17890.66110.60690.3040.88380.98490.8743
SGI 2.04527.40847.29170.91030.6921.35761.13371.0237
DEPI 0.79961.85830.430.82651.18450.94380.82840.9689
SGAI 0.78220.61760.99540.92081.13720.70730.72510.9669
LVGI 1.16550.16670.76851.03030.97721.02790.83541.5037
TATA -0.5189-0.0187-0.0598-0.5154-0.3934-0.0675-0.113-0.2482
M-score 8.2613.072.07-4.63-2.80-2.94-2.99-4.14

Broadwind Energy Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 0.83010.65850.93720.69831.10770.9430.82730.91320.79050.9629
GMI 1.63762.94292.30951.19191.03540.60680.67170.56690.50360.5119
AQI 0.890.85370.94030.98490.85470.82090.92180.87431.08191.2221
SGI 1.24331.3281.29431.13371.02540.92820.92451.02371.1351.232
DEPI 0.83240.78880.75990.82840.85970.82040.91830.96891.02191.1308
SGAI 0.81480.73270.73910.72510.79710.91250.96630.96690.91460.8811
LVGI 1.00391.08250.99870.83541.04781.00221.1831.50371.04060.9365
TATA -0.0049-0.06130.0002-0.113-0.1004-0.1971-0.3376-0.2482-0.1785-0.0515
M-score -2.14-1.83-1.59-2.99-2.86-3.81-4.55-4.14-3.61-2.66
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