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Broadwind Energy Inc (NAS:BWEN)
Beneish M-Score
-3.92 (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 -3.92 suggests that the company is not a manipulator.

BWEN' s Beneish M-Score Range Over the Past 10 Years
Min: -5.73   Max: 16.14
Current: -3.92

-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 -2.79.


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 * 0.6355+0.528 * 1.8235+0.404 * 1.1607+0.892 * 0.8976+0.115 * 0.9872
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0349+4.679 * -0.3245-0.327 * 0.9488
=-3.92

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $12.5 Mil.
Revenue was 46.757 + 37.573 + 49.791 + 65.225 = $199.3 Mil.
Gross Profit was 3.962 + -6.209 + 2.831 + 7.234 = $7.8 Mil.
Total Current Assets was $51.0 Mil.
Total Assets was $107.7 Mil.
Property, Plant and Equipment(Net PPE) was $51.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $8.6 Mil.
Selling, General & Admin. Expense(SGA) was $17.8 Mil.
Total Current Liabilities was $35.2 Mil.
Long-Term Debt was $2.6 Mil.
Net Income was -0.377 + -10.794 + -7.613 + 1.615 = $-17.2 Mil.
Non Operating Income was 0.012 + 0.461 + -0.064 + -0.044 = $0.4 Mil.
Cash Flow from Operations was 3.061 + 9.216 + 8.403 + -3.259 = $17.4 Mil.
Accounts Receivable was $21.8 Mil.
Revenue was 49.229 + 49.192 + 55.295 + 68.381 = $222.1 Mil.
Gross Profit was 2.745 + 0.494 + 4.013 + 8.631 = $15.9 Mil.
Total Current Assets was $70.2 Mil.
Total Assets was $137.4 Mil.
Property, Plant and Equipment(Net PPE) was $61.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $10.1 Mil.
Selling, General & Admin. Expense(SGA) was $19.2 Mil.
Total Current Liabilities was $47.9 Mil.
Long-Term Debt was $2.9 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)
=(12.459 / 199.346) / (21.841 / 222.097)
=0.06249937 / 0.09833991
=0.6355

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)
=(15.883 / 222.097) / (7.818 / 199.346)
=0.0715138 / 0.03921824
=1.8235

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 - (51.002 + 51.451) / 107.715) / (1 - (70.243 + 61.4) / 137.427)
=0.04885113 / 0.0420878
=1.1607

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
=199.346 / 222.097
=0.8976

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))
=(10.086 / (10.086 + 61.4)) / (8.58 / (8.58 + 51.451))
=0.14109056 / 0.14292615
=0.9872

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)
=(17.837 / 199.346) / (19.202 / 222.097)
=0.08947759 / 0.08645772
=1.0349

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 + 35.192) / 107.715) / ((2.897 + 47.92) / 137.427)
=0.35085178 / 0.3697745
=0.9488

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
=(-17.169 - 0.365 - 17.421) / 107.715
=-0.3245

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 -3.92 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 11.35270.37180.6561.41260.87010.69830.91320.81330.6955
GMI -0.92910.86072.57374.19710.36761.19190.56690.78951.8352
AQI 4.17890.66110.60690.3040.88380.98490.87431.39460.6921
SGI 7.40847.29170.91030.6921.35761.13371.02371.11850.8255
DEPI 1.84580.43170.82651.18450.94380.82840.96891.02731.1466
SGAI 0.50370.99540.92081.13720.70730.72510.96690.88431.045
LVGI 0.16670.76851.03030.97721.02790.83541.50370.94790.9591
TATA -0.0156-0.0598-0.5154-0.3934-0.0675-0.113-0.2482-0.0609-0.1521
M-score 13.412.08-4.63-2.80-2.94-2.99-4.14-2.74-3.29

Broadwind Energy Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 0.91320.79050.96290.95460.8470.95260.96240.78780.6590.6355
GMI 0.56690.50360.51190.61260.72720.93231.26741.3362.4061.8235
AQI 0.87431.08191.22210.76711.39460.80120.82061.15810.69211.1607
SGI 1.02371.1351.2321.16971.0740.96980.89570.89350.87120.8976
DEPI 0.96891.02191.13081.12281.12361.21191.15441.08351.04830.9872
SGAI 0.96690.91460.88110.87930.87420.90230.93730.98661.07211.0349
LVGI 1.50371.04060.93650.99740.94791.0230.98120.90140.95910.9488
TATA -0.2482-0.1785-0.0515-0.1332-0.0854-0.0632-0.03080.0281-0.1521-0.3245
M-score -4.14-3.61-2.66-3.26-2.89-2.93-2.65-2.35-3.00-3.92
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