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Broadwind Energy Inc (NAS:BWEN)
Beneish M-Score
-3.61 (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 -3.61 suggests that the company is not a manipulator.

BWEN' s 10-Year Beneish M-Score Range
Min: -5.73   Max: 13.34
Current: -3.61

-5.73
13.34

During the past 13 years, the highest Beneish M-Score of Broadwind Energy Inc was 13.34. The lowest was -5.73. And the median was -2.79.


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 * 0.7905+0.528 * 0.5036+0.404 * 1.0819+0.892 * 1.135+0.115 * 1.0219
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9146+4.679 * -0.1785-0.327 * 1.0406
=-3.61

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

This Year (Mar14) TTM:Last Year (Mar13) TTM:
Accounts Receivable was $23.6 Mil.
Revenue was 58.8 + 56.397 + 60.862 + 52.945 = $229.0 Mil.
Gross Profit was 5.093 + 2.156 + 4.618 + 3.401 = $15.3 Mil.
Total Current Assets was $77.7 Mil.
Total Assets was $153.6 Mil.
Property, Plant and Equipment(Net PPE) was $67.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $14.0 Mil.
Selling, General & Admin. Expense(SGA) was $21.9 Mil.
Total Current Liabilities was $52.0 Mil.
Long-Term Debt was $3.6 Mil.
Net Income was -1.043 + -3.746 + -2.398 + 0.404 = $-6.8 Mil.
Non Operating Income was 0.136 + 0.402 + -0.005 + 3.133 = $3.7 Mil.
Cash Flow from Operations was -12.117 + 4.747 + 7.731 + 16.616 = $17.0 Mil.
Accounts Receivable was $26.4 Mil.
Revenue was 45.506 + 44.908 + 55.045 + 56.311 = $201.8 Mil.
Gross Profit was 2.17 + 0.23 + 2.715 + 1.659 = $6.8 Mil.
Total Current Assets was $69.5 Mil.
Total Assets was $155.3 Mil.
Property, Plant and Equipment(Net PPE) was $78.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $16.6 Mil.
Selling, General & Admin. Expense(SGA) was $21.1 Mil.
Total Current Liabilities was $50.6 Mil.
Long-Term Debt was $3.4 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)
=(23.64 / 229.004) / (26.35 / 201.77)
=0.10322964 / 0.13059424
=0.7905

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)
=(2.156 / 201.77) / (5.093 / 229.004)
=0.03357288 / 0.06667132
=0.5036

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 - (77.749 + 67.797) / 153.616) / (1 - (69.487 + 78.273) / 155.301)
=0.05253359 / 0.04855732
=1.0819

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
=229.004 / 201.77
=1.135

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))
=(16.573 / (16.573 + 78.273)) / (13.984 / (13.984 + 67.797))
=0.17473589 / 0.17099326
=1.0219

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)
=(21.943 / 229.004) / (21.139 / 201.77)
=0.09581929 / 0.1047678
=0.9146

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)
=((3.564 + 51.964) / 153.616) / ((3.355 + 50.591) / 155.301)
=0.36147276 / 0.34736415
=1.0406

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
=(-6.783 - 3.666 - 16.977) / 153.616
=-0.1785

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 -3.61 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 0.437311.35270.37180.70221.31960.87010.69830.9132
GMI 5.227-1.50270.86072.38374.53150.36761.19190.5669
AQI 27.14444.17890.66110.60690.3040.88380.98490.8743
SGI 2.04527.40847.29170.85030.74081.35761.13371.0237
DEPI 0.79961.85830.430.91931.06490.94380.82840.9689
SGAI 0.78220.61760.99540.91781.1410.70730.72510.9669
LVGI 1.16550.16670.76851.03030.97721.02790.83541.5037
TATA -0.5189-0.0187-0.0598-0.5198-0.3971-0.0675-0.113-0.2482
M-score 8.2613.072.07-4.75-2.70-2.94-2.99-4.14

Broadwind Energy Inc Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
DSRI 0.87010.83240.67280.97920.69831.10770.9430.82730.91320.7905
GMI 0.36761.45412.50751.91011.19191.03540.60680.67170.56690.5036
AQI 0.88380.890.85370.94030.98490.85470.82090.92180.87431.0819
SGI 1.35761.241.29991.23881.13371.02540.92820.92451.02371.135
DEPI 0.94380.86470.85340.8580.82840.85970.82040.91830.96891.0219
SGAI 0.70740.80140.72070.72550.72510.79710.91250.96630.96690.9146
LVGI 1.02791.00391.08250.99870.83541.04781.00221.1831.50371.0406
TATA -0.0675-0.0041-0.06050.0011-0.113-0.1004-0.1971-0.3376-0.2482-0.1785
M-score -2.94-2.23-2.06-1.79-2.99-2.86-3.81-4.55-4.14-3.61
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