BWEN has been removed from your Stock Email Alerts list.
Please enter Portfolio Name for new portfolio.
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.
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 -2.88.
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 * 1.0795||+||0.528 * 1.6287||+||0.404 * 0.8979||+||0.892 * 0.8078||+||0.115 * 1.1598|
|-||0.172 * SGAI||+||4.679 * TATA||-||0.327 * LVGI|
|-||0.172 * 1.1053||+||4.679 * -0.3328||-||0.327 * 1.2848|
|This Year (Sep16) TTM:||Last Year (Sep15) TTM:|
|Accounts Receivable was $14.9 Mil.|
Revenue was 42.552 + 43.38 + 46.757 + 37.573 = $170.3 Mil.
Gross Profit was 5.331 + 4.142 + 3.962 + -6.209 = $7.2 Mil.
Total Current Assets was $68.9 Mil.
Total Assets was $125.6 Mil.
Property, Plant and Equipment(Net PPE) was $51.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $7.5 Mil.
Selling, General & Admin. Expense(SGA) was $16.3 Mil.
Total Current Liabilities was $52.2 Mil.
Long-Term Debt was $3.0 Mil.
Net Income was 0.872 + -0.474 + -0.377 + -10.794 = $-10.8 Mil.
Non Operating Income was 0.01 + 0.005 + 0.012 + 0.461 = $0.5 Mil.
Cash Flow from Operations was 16.065 + -1.273 + 3.061 + 12.7 = $30.6 Mil.
|Accounts Receivable was $17.1 Mil.
Revenue was 49.791 + 62.563 + 49.229 + 49.192 = $210.8 Mil.
Gross Profit was 2.831 + 8.499 + 2.745 + 0.494 = $14.6 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 $9.2 Mil.
Selling, General & Admin. Expense(SGA) was $18.3 Mil.
Total Current Liabilities was $39.6 Mil.
Long-Term Debt was $2.6 Mil.
1. DSRI = Days Sales in Receivables Index
A large increase in DSR could be indicative of revenue inflation.
|DSRI||=||(Receivables_t / Revenue_t)||/||(Receivables_t-1 / Revenue_t-1)|
|=||(14.926 / 170.262)||/||(17.116 / 210.775)|
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.
|=||(GrossProfit_t-1 / Revenue_t-1)||/||(GrossProfit_t / Revenue_t)|
|=||(14.569 / 210.775)||/||(7.226 / 170.262)|
3. AQI = Asset Quality Index
AQI is the ratio of asset quality in year t to year t-1.
|AQI||=||(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)||/||(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)|
|=||(1 - (68.869 + 51.761) / 125.636)||/||(1 - (64.43 + 53.558) / 123.467)|
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.
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))|
|=||(9.16 / (9.16 + 53.558))||/||(7.457 / (7.457 + 51.761))|
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)|
|=||(16.304 / 170.262)||/||(18.26 / 210.775)|
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)|
|=||((3.016 + 52.165) / 125.636)||/||((2.6 + 39.607) / 123.467)|
8. TATA = Total Accruals to Total Assets
Total accruals calculated as the change in working capital accounts other than cash less depreciation.
|=||(NetIncome_t - NonOperatingIncome_t||-||CashFlowsfromOperations_t)||/||TotalAssets_t|
|=||(-10.773 - 0.488||-||30.553)||/||125.636|
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 -3.94 suggests that the company will not be a manipulator.
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
Broadwind Energy Inc Annual Data
Broadwind Energy Inc Quarterly Data