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Broadwind Energy Inc (NAS:BWEN)
Beneish M-Score
-1.83 (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 -1.83 signals that the company is a manipulator.

BWEN' s Beneish M-Score Range Over the Past 10 Years
Min: -5.73   Max: 16.14
Current: -1.83

-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 -2.63.


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 * 0.7288+0.528 * 2.1131+0.404 * 1.1581+0.892 * 0.9658+0.115 * 0.9733
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.051+4.679 * 0.055-0.327 * 0.9014
=-1.83

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $17.1 Mil.
Revenue was 49.791 + 65.225 + 51.051 + 64.631 = $230.7 Mil.
Gross Profit was 2.831 + 7.234 + 0.739 + -1.712 = $9.1 Mil.
Total Current Assets was $64.4 Mil.
Total Assets was $123.5 Mil.
Property, Plant and Equipment(Net PPE) was $53.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $10.4 Mil.
Selling, General & Admin. Expense(SGA) was $21.6 Mil.
Total Current Liabilities was $39.6 Mil.
Long-Term Debt was $2.6 Mil.
Net Income was -7.613 + 1.615 + -5.015 + -5.172 = $-16.2 Mil.
Non Operating Income was -0.064 + -0.044 + 0.212 + 0.153 = $0.3 Mil.
Cash Flow from Operations was 8.403 + -3.093 + -20.038 + -8.509 = $-23.2 Mil.
Accounts Receivable was $24.3 Mil.
Revenue was 55.295 + 68.381 + 58.8 + 56.397 = $238.9 Mil.
Gross Profit was 4.013 + 8.631 + 5.093 + 2.156 = $19.9 Mil.
Total Current Assets was $88.4 Mil.
Total Assets was $158.8 Mil.
Property, Plant and Equipment(Net PPE) was $64.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $12.1 Mil.
Selling, General & Admin. Expense(SGA) was $21.3 Mil.
Total Current Liabilities was $56.9 Mil.
Long-Term Debt was $3.3 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)
=(17.116 / 230.698) / (24.316 / 238.873)
=0.07419223 / 0.10179468
=0.7288

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)
=(7.234 / 238.873) / (2.831 / 230.698)
=0.08327856 / 0.03941083
=2.1131

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 - (64.43 + 53.558) / 123.467) / (1 - (88.411 + 64.3) / 158.796)
=0.04437623 / 0.03831961
=1.1581

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
=230.698 / 238.873
=0.9658

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))
=(12.088 / (12.088 + 64.3)) / (10.399 / (10.399 + 53.558))
=0.15824475 / 0.16259362
=0.9733

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)
=(21.608 / 230.698) / (21.288 / 238.873)
=0.09366358 / 0.08911849
=1.051

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 + 39.607) / 123.467) / ((3.339 + 56.88) / 158.796)
=0.34184843 / 0.3792224
=0.9014

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
=(-16.185 - 0.257 - -23.237) / 123.467
=0.055

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 -1.83 signals that the company is likely to 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 11.35270.37180.70221.31960.87010.69830.91320.955
GMI -1.50270.86072.38374.53150.36761.19190.56690.7895
AQI 4.17890.66110.60690.3040.88380.98490.87430.7985
SGI 7.40847.29170.85030.74081.35761.13371.02371.1185
DEPI 1.85830.430.91931.06490.94380.82840.96891.0916
SGAI 0.61760.99540.91781.1410.70730.72510.96690.8843
LVGI 0.16670.76851.03030.97721.02790.83541.50370.948
TATA -0.0187-0.0598-0.5198-0.3971-0.0675-0.113-0.2482-0.0609
M-score 13.072.07-4.75-2.70-2.94-2.99-4.14-2.85

Broadwind Energy Inc Quarterly Data

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
DSRI 0.9430.82730.91320.79050.96290.95460.93240.88390.89210.7288
GMI 0.60680.67170.56690.50360.51190.61260.88251.36731.92792.1131
AQI 0.82090.92180.87431.08191.22210.76710.79850.80120.82061.1581
SGI 0.92820.92451.02371.1351.2321.16971.14561.04520.96630.9658
DEPI 0.82040.91830.96891.02191.13081.12281.09161.07241.04310.9733
SGAI 0.91250.96630.96690.91460.88110.87930.91130.96110.99981.051
LVGI 1.00221.1831.50371.04060.93650.99740.9481.0230.98120.9014
TATA -0.1971-0.3376-0.2482-0.1785-0.0515-0.1332-0.0618-0.0378-0.00560.055
M-score -3.81-4.55-4.14-3.61-2.66-3.26-2.80-2.60-2.21-1.83
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