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Westport Innovations Inc (NAS:WPRT)
Beneish M-Score
0.00 (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.

Westport Innovations Inc has a M-score of -1.34 signals that the company is a manipulator.

WPRT' s 10-Year Beneish M-Score Range
Min: -3.31   Max: 215.86
Current: 0

-3.31
215.86

During the past 13 years, the highest Beneish M-Score of Westport Innovations Inc was 215.86. The lowest was -3.31. And the median was -2.19.


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 Westport Innovations 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 * 1.2735+0.528 * 3.6508+0.404 * 0.9221+0.892 * 1.054+0.115 * 0.8408
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.952+4.679 * -0.1072-0.327 * 1.0368
=-1.34

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

This Year (Dec13) TTM:Last Year (Dec12) TTM:
Accounts Receivable was $59.3 Mil.
Revenue was 52.595 + 46.528 + 34.856 + 30.053 = $164.0 Mil.
Gross Profit was -17.067 + 16.057 + 8.257 + 8.095 = $15.3 Mil.
Total Current Assets was $319.7 Mil.
Total Assets was $491.7 Mil.
Property, Plant and Equipment(Net PPE) was $67.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $16.3 Mil.
Selling, General & Admin. Expense(SGA) was $75.2 Mil.
Total Current Liabilities was $125.0 Mil.
Long-Term Debt was $13.0 Mil.
Net Income was -89.451 + -30.225 + -33.935 + -31.799 = $-185.4 Mil.
Non Operating Income was -27.96 + 2.347 + 7.999 + 1.687 = $-15.9 Mil.
Cash Flow from Operations was -17.879 + -33.756 + -31.731 + -33.423 = $-116.8 Mil.
Accounts Receivable was $44.2 Mil.
Revenue was 39.926 + 30.674 + 49.074 + 35.952 = $155.6 Mil.
Gross Profit was 13.423 + 7.796 + 23.069 + 8.852 = $53.1 Mil.
Total Current Assets was $318.8 Mil.
Total Assets was $490.1 Mil.
Property, Plant and Equipment(Net PPE) was $58.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $11.4 Mil.
Selling, General & Admin. Expense(SGA) was $74.9 Mil.
Total Current Liabilities was $80.5 Mil.
Long-Term Debt was $52.2 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)
=(59.315 / 164.032) / (44.189 / 155.626)
=0.36160627 / 0.28394356
=1.2735

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)
=(16.057 / 155.626) / (-17.067 / 164.032)
=0.34145965 / 0.09353053
=3.6508

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 - (319.726 + 67.349) / 491.671) / (1 - (318.819 + 58.194) / 490.077)
=0.21273575 / 0.2307066
=0.9221

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
=164.032 / 155.626
=1.054

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))
=(11.395 / (11.395 + 58.194)) / (16.288 / (16.288 + 67.349))
=0.16374714 / 0.19474634
=0.8408

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)
=(75.182 / 164.032) / (74.923 / 155.626)
=0.4583374 / 0.48142984
=0.952

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)
=((12.988 + 124.967) / 491.671) / ((52.156 + 80.466) / 490.077)
=0.28058397 / 0.27061462
=1.0368

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
=(-185.41 - -15.927 - -116.789) / 491.671
=-0.1072

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.

Westport Innovations Inc has a M-score of -1.34 signals that the company is likely to 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.

Westport Innovations Inc Annual Data

Mar04Mar05Mar06Mar07Mar08Mar09Mar10Mar11Dec12Dec13
DSRI 0.54431.12120.80341.27681.07240.75091.40061.0031.39511.2735
GMI 1.06430.98620.90540.93691.16111.24420.79570.82461.1293.6508
AQI 1.25480.89051.46190.81311.08940.18930.49953.21892.52470.9221
SGI 1.47361.1511.31231.40341.32571.38831.26081.21711.05111.054
DEPI 0.71770.74741.27461.53380.90281.4510.84151.09061.35790.8408
SGAI 0.89070.71990.89080.93811.00440.86141.19211.07451.88220.952
LVGI 0.98221.37741.58471.03940.6850.88660.84190.84711.1491.0368
TATA -0.168-0.2081-0.12750.01570.0212-0.2096-0.1114-0.0695-0.0596-0.1133
M-score -3.13-3.36-2.98-1.84-1.81-3.43-2.71-1.76-1.83-1.36

Westport Innovations Inc Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DSRI 1.38312.20212.38681.70870.57130.67850.56651.2735
GMI 1.05511.25151.09151.02330.88051.25371.13373.6508
AQI 2.10691.98211.80820.62451.3811.70961.84020.9221
SGI 1.44151.09320.99180.56830.9250.8161.30821.054
DEPI 1.07871.25311.13180.88091.05491.1641.06550.8408
SGAI 1.1161.10491.06561.68871.78322.05431.28890.952
LVGI 1.27791.12930.9910.62121.09341.24041.20511.0368
TATA -0.0250.07210.08850.0348-0.0549-0.0911-0.0349-0.1072
M-score -1.48-0.46-0.42-2.20-3.27-3.19-2.47-1.34
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