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Westport Innovations Inc (NAS:WPRT)
Beneish M-Score
-1.56 (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 -1.56 signals that the company is a manipulator.

WPRT' s 10-Year Beneish M-Score Range
Min: -10000000   Max: 215.86
Current: -1.56

-10000000
215.86

During the past 13 years, the highest Beneish M-Score of Westport Innovations Inc was 215.86. The lowest was -10000000.00. And the median was -2.28.


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 * 0.7903+0.528 * 3.1976+0.404 * 0.9164+0.892 * 1.602+0.115 * 0.8215
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9049+4.679 * -0.1183-0.327 * 0.9666
=-1.56

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

This Year (Mar14) TTM:Last Year (Mar13) TTM:
Accounts Receivable was $48.5 Mil.
Revenue was 41.923 + 52.595 + 46.528 + 34.856 = $175.9 Mil.
Gross Profit was 12.272 + -17.067 + 16.057 + 8.257 = $19.5 Mil.
Total Current Assets was $279.4 Mil.
Total Assets was $448.3 Mil.
Property, Plant and Equipment(Net PPE) was $66.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $17.0 Mil.
Selling, General & Admin. Expense(SGA) was $74.3 Mil.
Total Current Liabilities was $115.2 Mil.
Long-Term Debt was $10.8 Mil.
Net Income was -23.866 + -89.451 + -30.225 + -33.935 = $-177.5 Mil.
Non Operating Income was -0.356 + -27.96 + 2.347 + 7.999 = $-18.0 Mil.
Cash Flow from Operations was -23.093 + -17.879 + -33.756 + -31.731 = $-106.5 Mil.
Accounts Receivable was $38.3 Mil.
Revenue was 30.053 + 0 + 30.674 + 49.074 = $109.8 Mil.
Gross Profit was 8.095 + 0 + 7.796 + 23.069 = $39.0 Mil.
Total Current Assets was $271.5 Mil.
Total Assets was $444.5 Mil.
Property, Plant and Equipment(Net PPE) was $61.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $12.5 Mil.
Selling, General & Admin. Expense(SGA) was $51.3 Mil.
Total Current Liabilities was $80.0 Mil.
Long-Term Debt was $49.3 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)
=(48.535 / 175.902) / (38.336 / 109.801)
=0.27592068 / 0.34914072
=0.7903

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)
=(-17.067 / 109.801) / (12.272 / 175.902)
=0.35482373 / 0.1109652
=3.1976

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 - (279.436 + 66.115) / 448.306) / (1 - (271.458 + 61.846) / 444.477)
=0.22920728 / 0.25012093
=0.9164

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
=175.902 / 109.801
=1.602

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))
=(12.506 / (12.506 + 61.846)) / (17.023 / (17.023 + 66.115))
=0.16819991 / 0.20475595
=0.8215

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)
=(74.349 / 175.902) / (51.286 / 109.801)
=0.42267285 / 0.46708136
=0.9049

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)
=((10.815 + 115.212) / 448.306) / ((49.278 + 79.989) / 444.477)
=0.28111825 / 0.29082945
=0.9666

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
=(-177.477 - -17.97 - -106.459) / 448.306
=-0.1183

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 -1.56 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

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
DSRI 2.20212.38681.70870.7790.96190.76940.94680.7903
GMI 1.25151.09151.02330.86821.37591.18033.67023.1976
AQI 1.98211.80820.62451.3811.70961.84020.92210.9164
SGI 1.09320.99180.56830.67840.57560.96321.41771.602
DEPI 1.24461.12550.8761.06221.17061.07150.84080.8215
SGAI 1.10491.06561.68871.63632.01761.2331.06070.9049
LVGI 1.12930.9910.62121.09341.24041.20511.03680.9666
TATA 0.02340.0386-0.01660.03750.00020.0628-0.1072-0.1183
M-score -0.68-0.65-2.44-2.84-2.64-2.10-1.32-1.56
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