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Broadwind Energy Inc (NAS:BWEN)
Beneish M-Score
-3.94 (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 -3.94 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: -3.94

-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 -2.88.


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 * 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
=-3.94

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

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

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)
=(14.926 / 170.262) / (17.116 / 210.775)
=0.08766489 / 0.08120508
=1.0795

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)
=(14.569 / 210.775) / (7.226 / 170.262)
=0.0691211 / 0.04244047
=1.6287

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 - (68.869 + 51.761) / 125.636) / (1 - (64.43 + 53.558) / 123.467)
=0.03984527 / 0.04437623
=0.8979

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
=170.262 / 210.775
=0.8078

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))
=0.14605058 / 0.12592455
=1.1598

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)
=0.0957583 / 0.08663267
=1.1053

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)
=0.43921328 / 0.34184843
=1.2848

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
=(-10.773 - 0.488 - 30.553) / 125.636
=-0.3328

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.


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 local exchange's 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

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 0.96290.95460.8470.95260.97430.79770.66780.64410.96381.0795
GMI 0.51190.61260.72720.93231.15151.20481.99241.54862.73531.6287
AQI 1.22210.76711.39460.80120.82061.15810.69211.16071.10660.8979
SGI 1.2321.16971.0740.96980.88480.88240.85970.88560.82070.8078
DEPI 1.13081.12281.12361.21191.22341.08351.04830.98720.98141.1598
SGAI 0.88110.87930.87420.90230.92330.97211.05711.01911.09141.1053
LVGI 0.93650.99740.94791.0230.98120.90140.95910.94881.09461.2848
TATA -0.0515-0.1332-0.0854-0.0632-0.04910.0564-0.1521-0.3245-0.338-0.3328
M-score -2.66-3.26-2.89-2.93-2.78-2.29-3.21-4.06-3.34-3.94
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