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Westport Innovations Inc (NAS:WPRT)
Beneish M-Score
-3.75 (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 -3.94 suggests that the company is not a manipulator.

WPRT' s 10-Year Beneish M-Score Range
Min: -10000000   Max: 229.1
Current: -3.75

-10000000
229.1

During the past 13 years, the highest Beneish M-Score of Westport Innovations Inc was 229.10. The lowest was -10000000.00. And the median was -2.58.


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 * 1.1534+0.528 * 0.5254+0.404 * 1.187+0.892 * 0.6944+0.115 * 0.805
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1701+4.679 * -0.198-0.327 * 1.5463
=-3.94

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
Accounts Receivable was $36.6 Mil.
Revenue was 28.022 + 27.395 + 25.301 + 40.036 = $120.8 Mil.
Gross Profit was 5.424 + -1.196 + 7.969 + 13.601 = $25.8 Mil.
Total Current Assets was $159.6 Mil.
Total Assets was $291.2 Mil.
Property, Plant and Equipment(Net PPE) was $52.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $17.9 Mil.
Selling, General & Admin. Expense(SGA) was $60.4 Mil.
Total Current Liabilities was $74.3 Mil.
Long-Term Debt was $52.3 Mil.
Net Income was -17.204 + -64.92 + -25.476 + -35.358 = $-143.0 Mil.
Non Operating Income was 6.312 + 11.402 + 2.135 + 1.041 = $20.9 Mil.
Cash Flow from Operations was -22.512 + -23.35 + -31.377 + -28.937 = $-106.2 Mil.
Accounts Receivable was $45.7 Mil.
Revenue was 39.928 + 52.595 + 46.528 + 34.856 = $173.9 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.



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)
=(36.578 / 120.754) / (45.672 / 173.907)
=0.30291336 / 0.26262313
=1.1534

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)
=(-1.196 / 173.907) / (5.424 / 120.754)
=0.11223815 / 0.21364096
=0.5254

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 - (159.582 + 52.418) / 291.234) / (1 - (279.436 + 66.115) / 448.306)
=0.27206301 / 0.22920728
=1.187

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
=120.754 / 173.907
=0.6944

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))
=(17.023 / (17.023 + 66.115)) / (17.882 / (17.882 + 52.418))
=0.20475595 / 0.254367
=0.805

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)
=(60.404 / 120.754) / (74.349 / 173.907)
=0.5002236 / 0.42752161
=1.1701

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)
=((52.329 + 74.265) / 291.234) / ((10.815 + 115.212) / 448.306)
=0.43468139 / 0.28111825
=1.5463

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
=(-142.958 - 20.89 - -106.176) / 291.234
=-0.198

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 -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 own currency.

Westport Innovations Inc Annual Data

Mar05Mar06Mar07Mar08Mar09Mar10Mar11Dec12Dec13Dec14
DSRI 1.12120.80341.27680.54610.53611.77761.07192.54541.25160.9703
GMI 0.98620.90540.93691.16111.24420.79570.82461.1293.65080.3741
AQI 0.89051.46190.81311.08940.18930.49953.21892.52470.92211.2345
SGI 1.1511.31231.40341.32571.38831.26081.21711.05111.0540.796
DEPI 0.74741.27461.53380.90281.4510.84151.09061.35790.84080.8013
SGAI 0.71990.89080.93811.00440.86141.19211.07451.88220.9521.0996
LVGI 1.37741.58471.03940.6850.88660.84190.84711.1491.03681.54
TATA -0.2081-0.12750.01570.0212-0.2096-0.1114-0.0695-0.0596-0.1669-0.169
M-score -3.36-2.98-1.84-2.30-3.63-2.36-1.69-0.77-1.64-3.93

Westport Innovations Inc Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 11.06250.83721.06181.25161.06241.00460.91320.9551.1534
GMI 1.0470.88051.25371.13373.65083.11711.99712.84940.38010.5254
AQI 0.75821.3811.70961.84020.92210.91640.77080.74951.23451.187
SGI 0.94870.9250.8161.30821.0541.16151.32161.04290.80870.6944
DEPI 6.1070.98361.10011.00710.84080.82150.79380.7510.80130.805
SGAI 1.94221.78322.05431.28890.9520.83990.64890.74811.08231.1701
LVGI 0.66141.09341.24041.20511.03680.96661.03391.07361.541.5463
TATA -0.0603-0.0549-0.0836-0.03-0.1669-0.1838-0.1867-0.2017-0.169-0.198
M-score -2.34-2.82-3.01-1.99-1.64-2.04-2.60-2.60-3.93-3.94
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