Westjet Airlines Beneish M-Score Historical Data
The historical data trend for Westjet Airlines's Beneish M-Score can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Westjet Airlines Beneish M-Score Chart
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Westjet Airlines Annual Data
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Trend |
Dec09 |
Dec10 |
Dec11 |
Dec12 |
Dec13 |
Dec14 |
Dec15 |
Dec16 |
Dec17 |
Dec18 |
| Beneish M-Score |
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-2.68 |
-2.24 |
-2.35 |
-2.89 |
-2.84 |
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Westjet Airlines Quarterly Data
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Dec14 |
Mar15 |
Jun15 |
Sep15 |
Dec15 |
Mar16 |
Jun16 |
Sep16 |
Dec16 |
Mar17 |
Jun17 |
Sep17 |
Dec17 |
Mar18 |
Jun18 |
Sep18 |
Dec18 |
Mar19 |
Jun19 |
Sep19 |
| Beneish M-Score |
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-2.81 |
-2.84 |
-2.91 |
-2.96 |
-3.05 |
Competitive Comparison of Westjet Airlines's Beneish M-Score
For the Airlines subindustry, Westjet Airlines's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Westjet Airlines's Beneish M-Score Distribution in the Transportation Industry
For the Transportation industry and Industrials sector, Westjet Airlines's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Westjet Airlines's Beneish M-Score falls into.
Westjet Airlines Beneish M-Score Calculation
The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski 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 Westjet Airlines 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 * 0.8555 | + | 0.528 * 0.9489 | + | 0.404 * 1.1908 | + | 0.892 * 1.0555 | + | 0.115 * 1.3071 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 1.0032 | + | 4.679 * -0.123435 | - | 0.327 * 1.0314 |
| = | -3.07 |
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
| This Year (Sep19) TTM: | Last Year (Sep18) TTM: |
Total Receivables was $132 Mil.
Revenue was 1051.989 + 912.725 + 940.585 + 888.109 = $3,793 Mil.
Gross Profit was 306.641 + 194.775 + 225.366 + 167.812 = $895 Mil.
Total Current Assets was $1,404 Mil.
Total Assets was $5,712 Mil.
Property, Plant and Equipment(Net PPE) was $4,169 Mil.
Depreciation, Depletion and Amortization(DDA) was $353 Mil.
Selling, General, & Admin. Expense(SGA) was $350 Mil.
Total Current Liabilities was $1,866 Mil.
Long-Term Debt & Capital Lease Obligation was $1,412 Mil.
Net Income was 90.165 + 33.32 + 34.115 + 2.257 = $160 Mil.
Non Operating Income was -5.272 + 4.337 + 15.676 + 6.84 = $22 Mil.
Cash Flow from Operations was 342.421 + 150.838 + 308.956 + 41.075 = $843 Mil.
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Total Receivables was $146 Mil.
Revenue was 967.395 + 828.627 + 921.46 + 876.403 = $3,594 Mil.
Gross Profit was 230.918 + 139.784 + 219.315 + 214.205 = $804 Mil.
Total Current Assets was $1,384 Mil.
Total Assets was $5,153 Mil.
Property, Plant and Equipment(Net PPE) was $3,665 Mil.
Depreciation, Depletion and Amortization(DDA) was $416 Mil.
Selling, General, & Admin. Expense(SGA) was $330 Mil.
Total Current Liabilities was $1,765 Mil.
Long-Term Debt & Capital Lease Obligation was $1,103 Mil.
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1. DSRI = Days Sales in Receivables Index
Measured as the ratio of Revenue in Total 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) |
| = | (131.571 / 3793.408) | / | (145.703 / 3593.885) |
| = | 0.034684 | / | 0.040542 |
| | = | 0.8555 |
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) |
| = | (804.222 / 3593.885) | / | (894.594 / 3793.408) |
| = | 0.223775 | / | 0.235829 |
| | = | 0.9489 |
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 Property, Plant and Equipment to Total Assets.
| AQI | = | (1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) | / | (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1) |
| = | (1 - (1404.312 + 4169.142) / 5711.603) | / | (1 - (1383.952 + 3664.72) / 5153.34) |
| = | 0.024187 | / | 0.020311 |
| | = | 1.1908 |
4. SGI = Sales Growth Index
Ratio of Revenue 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 |
| = | 3793.408 | / | 3593.885 |
| | = | 1.0555 |
5. DEPI = Depreciation Index
Measured as the ratio of the rate of Depreciation, Depletion and Amortization 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)) |
| = | (416.197 / (416.197 + 3664.72)) | / | (352.831 / (352.831 + 4169.142)) |
| = | 0.101986 | / | 0.078026 |
| | = | 1.3071 |
Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.
6. SGAI = Sales, General and Administrative expenses Index
The ratio of Selling, General, & Admin. Expense(SGA) to Sales 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) |
| = | (349.502 / 3793.408) | / | (330.068 / 3593.885) |
| = | 0.092134 | / | 0.091842 |
| | = | 1.0032 |
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 in leverage
| LVGI | = | ((LTD_t + CurrentLiabilities_t) / TotalAssets_t) | / | ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1) |
| = | ((1412.306 + 1866.098) / 5711.603) | / | ((1102.971 + 1764.833) / 5153.34) |
| = | 0.57399 | / | 0.556494 |
| | = | 1.0314 |
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 |
| = | (159.857 - 21.581 | - | 843.29) | / | 5711.603 |
| | = | -0.123435 |
An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.
Westjet Airlines has a M-score of -3.07 suggests that the company is unlikely to be a manipulator.
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