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Broadwind Energy Inc (NAS:BWEN)
Beneish M-Score
-2.85 (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 -2.85 suggests that the company is not a manipulator.

BWEN' s 10-Year Beneish M-Score Range
Min: -4.75   Max: 13.07
Current: -2.85

-4.75
13.07

During the past 13 years, the highest Beneish M-Score of Broadwind Energy Inc was 13.07. The lowest was -4.75. And the median was -2.85.


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 * 0.955+0.528 * 0.7895+0.404 * 0.7985+0.892 * 1.1185+0.115 * 1.0916
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8843+4.679 * -0.0609-0.327 * 0.948
=-2.85

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
Accounts Receivable was $20.0 Mil.
Revenue was 53.798 + 60.289 + 68.381 + 58.8 = $241.3 Mil.
Gross Profit was -0.092 + 3.858 + 8.631 + 5.093 = $17.5 Mil.
Total Current Assets was $77.7 Mil.
Total Assets was $146.6 Mil.
Property, Plant and Equipment(Net PPE) was $63.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $12.2 Mil.
Selling, General & Admin. Expense(SGA) was $21.2 Mil.
Total Current Liabilities was $51.7 Mil.
Long-Term Debt was $3.1 Mil.
Net Income was -5.171 + -1.814 + 1.86 + -1.043 = $-6.2 Mil.
Non Operating Income was -0.006 + 0.148 + -0.016 + 0.136 = $0.3 Mil.
Cash Flow from Operations was -4.588 + 17.635 + 1.571 + -12.117 = $2.5 Mil.
Accounts Receivable was $18.7 Mil.
Revenue was 56.397 + 60.862 + 52.945 + 45.506 = $215.7 Mil.
Gross Profit was 2.156 + 4.618 + 3.401 + 2.17 = $12.3 Mil.
Total Current Assets was $86.3 Mil.
Total Assets was $163.7 Mil.
Property, Plant and Equipment(Net PPE) was $69.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $14.9 Mil.
Selling, General & Admin. Expense(SGA) was $21.4 Mil.
Total Current Liabilities was $60.5 Mil.
Long-Term Debt was $3.9 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)
=(20.012 / 241.268) / (18.735 / 215.71)
=0.08294511 / 0.08685272
=0.955

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)
=(3.858 / 215.71) / (-0.092 / 241.268)
=0.05722961 / 0.072492
=0.7895

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 - (77.742 + 62.952) / 146.617) / (1 - (86.335 + 69.077) / 163.694)
=0.04039777 / 0.0505944
=0.7985

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
=241.268 / 215.71
=1.1185

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))
=(14.856 / (14.856 + 69.077)) / (12.183 / (12.183 + 62.952))
=0.17699832 / 0.16214813
=1.0916

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)
=(21.181 / 241.268) / (21.414 / 215.71)
=0.08779034 / 0.09927217
=0.8843

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)
=((3.077 + 51.667) / 146.617) / ((3.948 + 60.528) / 163.694)
=0.37338099 / 0.39388127
=0.948

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
=(-6.168 - 0.262 - 2.501) / 146.617
=-0.0609

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 -2.85 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 0.437311.35270.37180.70221.31960.87010.69830.91320.955
GMI 5.227-1.50270.86072.38374.53150.36761.19190.56690.7895
AQI 27.14444.17890.66110.60690.3040.88380.98490.87430.7985
SGI 2.04527.40847.29170.85030.74081.35761.13371.02371.1185
DEPI 0.79961.85830.430.91931.06490.94380.82840.96891.0916
SGAI 0.78220.61760.99540.91781.1410.70730.72510.96690.8843
LVGI 1.16550.16670.76851.03030.97721.02790.83541.50370.948
TATA -0.5189-0.0187-0.0598-0.5198-0.3971-0.0675-0.113-0.2482-0.0609
M-score 8.2613.072.07-4.75-2.70-2.94-2.99-4.14-2.85

Broadwind Energy Inc Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 0.97920.69831.10770.9430.82730.91320.79050.96290.93510.955
GMI 1.91011.19191.03540.60680.67170.56690.50360.51190.63030.7895
AQI 0.94030.98490.85470.82090.92180.87431.08191.22210.76710.7985
SGI 1.23881.13371.02540.92820.92451.02371.1351.2321.19411.1185
DEPI 0.8580.82840.85970.82040.91830.96891.02191.13081.05521.0916
SGAI 0.72550.72510.79710.91250.96630.96690.91460.88110.88440.8843
LVGI 0.99870.83541.04781.00221.1831.50371.04060.93650.99740.948
TATA 0.0011-0.113-0.1004-0.1971-0.3376-0.2482-0.1785-0.0515-0.1086-0.0609
M-score -1.79-2.99-2.86-3.81-4.55-4.14-3.61-2.66-3.14-2.85
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