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Broadwind Energy Inc (NAS:BWEN)
Beneish M-Score
-2.43 (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 -2.43 suggests that the company is not a manipulator.

BWEN' s Beneish M-Score Range Over the Past 10 Years
Min: -4.75   Max: 13.07
Current: -2.43

-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 -2.80.


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 * 0.6531+0.528 * 3.4876+0.404 * 0.6921+0.892 * 0.879+0.115 * 1.0483
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.096+4.679 * -0.1534-0.327 * 0.9591
=-2.43

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

This Year (Dec15) TTM:Last Year (Dec14) TTM:
Accounts Receivable was $9.8 Mil.
Revenue was 37.573 + 49.791 + 65.225 + 51.051 = $203.6 Mil.
Gross Profit was -6.209 + 2.831 + 7.234 + 0.739 = $4.6 Mil.
Total Current Assets was $52.6 Mil.
Total Assets was $109.9 Mil.
Property, Plant and Equipment(Net PPE) was $51.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $9.2 Mil.
Selling, General & Admin. Expense(SGA) was $19.4 Mil.
Total Current Liabilities was $36.8 Mil.
Long-Term Debt was $2.6 Mil.
Net Income was -10.794 + -7.613 + 1.615 + -5.015 = $-21.8 Mil.
Non Operating Income was 0.461 + -0.064 + -0.044 + 0.212 = $0.6 Mil.
Cash Flow from Operations was 9.216 + 8.403 + -3.093 + -20.038 = $-5.5 Mil.
Accounts Receivable was $17.0 Mil.
Revenue was 49.192 + 55.295 + 68.381 + 58.8 = $231.7 Mil.
Gross Profit was 0.494 + 4.013 + 8.631 + 5.093 = $18.2 Mil.
Total Current Assets was $77.7 Mil.
Total Assets was $146.6 Mil.
Property, Plant and Equipment(Net PPE) was $58.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $10.9 Mil.
Selling, General & Admin. Expense(SGA) was $20.1 Mil.
Total Current Liabilities was $51.7 Mil.
Long-Term Debt was $3.1 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)
=(9.784 / 203.64) / (17.043 / 231.668)
=0.04804557 / 0.07356648
=0.6531

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)
=(2.831 / 231.668) / (-6.209 / 203.64)
=0.07869451 / 0.02256433
=3.4876

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 - (52.634 + 51.906) / 109.907) / (1 - (77.743 + 58.529) / 146.617)
=0.04883219 / 0.07055798
=0.6921

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
=203.64 / 231.668
=0.879

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))
=(10.944 / (10.944 + 58.529)) / (9.179 / (9.179 + 51.906))
=0.15752882 / 0.15026602
=1.0483

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)
=(19.368 / 203.64) / (20.104 / 231.668)
=0.09510902 / 0.08677936
=1.096

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)
=((2.6 + 36.755) / 109.907) / ((3.072 + 51.668) / 146.617)
=0.35807546 / 0.3733537
=0.9591

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
=(-21.807 - 0.565 - -5.512) / 109.907
=-0.1534

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 -2.43 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

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 0.82730.91320.79050.96290.95460.8470.94490.95450.78110.6531
GMI 0.67170.56690.50360.51190.61260.72721.07581.48341.58673.4876
AQI 0.92180.87431.08191.22210.76711.39460.80120.82061.15810.6921
SGI 0.92451.02371.1351.2321.16971.0740.97780.90310.90110.879
DEPI 0.91830.96891.02191.13081.12281.12361.17971.15441.08351.0483
SGAI 0.96630.96690.91460.88110.87930.87420.92250.95871.00911.096
LVGI 1.1831.50371.04060.93650.99740.94791.0230.98120.90140.9591
TATA -0.3376-0.2482-0.1785-0.0515-0.1332-0.0854-0.063-0.03180.027-0.1534
M-score -4.55-4.14-3.61-2.66-3.26-2.89-2.86-2.54-2.23-2.43
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