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Westport Innovations Inc (NAS:WPRT)
Beneish M-Score
-3.63 (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 -3.62 suggests that the company is not a manipulator.

WPRT' s Beneish M-Score Range Over the Past 10 Years
Min: -10000000   Max: 406566.91
Current: -3.63

-10000000
406566.91

During the past 13 years, the highest Beneish M-Score of Westport Innovations Inc was 406566.91. The lowest was -10000000.00. And the median was -2.09.


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 * 1.2501+0.528 * 0.9946+0.404 * 1.0804+0.892 * 0.8223+0.115 * 1.0786
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0797+4.679 * -0.2351-0.327 * 1.4259
=-3.62

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $37.60 Mil.
Revenue was 24.011 + 25.109 + 22.327 + 27.846 = $99.29 Mil.
Gross Profit was 6.763 + 3.528 + 1.301 + 9.737 = $21.33 Mil.
Total Current Assets was $104.85 Mil.
Total Assets was $209.15 Mil.
Property, Plant and Equipment(Net PPE) was $42.82 Mil.
Depreciation, Depletion and Amortization(DDA) was $13.22 Mil.
Selling, General & Admin. Expense(SGA) was $53.63 Mil.
Total Current Liabilities was $84.00 Mil.
Long-Term Debt was $45.63 Mil.
Net Income was -23.279 + -23.311 + -37.384 + -20.489 = $-104.46 Mil.
Non Operating Income was 2.003 + 4.905 + 3.571 + 3.529 = $14.01 Mil.
Cash Flow from Operations was -23.088 + -14.403 + -15.073 + -16.729 = $-69.29 Mil.
Accounts Receivable was $36.58 Mil.
Revenue was 28.022 + 27.395 + 25.301 + 40.036 = $120.75 Mil.
Gross Profit was 5.424 + -1.196 + 7.969 + 13.601 = $25.80 Mil.
Total Current Assets was $159.58 Mil.
Total Assets was $291.23 Mil.
Property, Plant and Equipment(Net PPE) was $52.42 Mil.
Depreciation, Depletion and Amortization(DDA) was $17.88 Mil.
Selling, General & Admin. Expense(SGA) was $60.40 Mil.
Total Current Liabilities was $74.27 Mil.
Long-Term Debt was $52.33 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)
=(37.599 / 99.293) / (36.578 / 120.754)
=0.37866718 / 0.30291336
=1.2501

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)
=(3.528 / 120.754) / (6.763 / 99.293)
=0.21364096 / 0.2148087
=0.9946

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 - (104.848 + 42.82) / 209.145) / (1 - (159.582 + 52.418) / 291.234)
=0.29394439 / 0.27206301
=1.0804

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
=99.293 / 120.754
=0.8223

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))
=(17.882 / (17.882 + 52.418)) / (13.215 / (13.215 + 42.82))
=0.254367 / 0.23583475
=1.0786

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)
=(53.625 / 99.293) / (60.404 / 120.754)
=0.54006828 / 0.5002236
=1.0797

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)
=((45.628 + 84.002) / 209.145) / ((52.329 + 74.265) / 291.234)
=0.61980922 / 0.43468139
=1.4259

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
=(-104.463 - 14.008 - -69.293) / 209.145
=-0.2351

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 -3.62 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

Mar06Mar07Mar08Mar09Mar10Mar11Dec12Dec13Dec14Dec15
DSRI 0.80341.27680.54610.67691.3311.21582.52041.21410.9421.014
GMI 0.90540.93691.16111.24420.79940.82081.1293.65080.37411.2921
AQI 1.46190.81311.08940.18940.49943.37512.40820.92211.23451.1229
SGI 1.31231.40341.32571.38831.32891.15471.05111.0540.7960.7912
DEPI 1.27461.53380.90281.75430.66121.11311.40060.84080.80131
SGAI 0.89080.93811.00440.83721.2291.18211.73440.93721.09961.0121
LVGI 1.58471.03940.6850.88660.84190.84531.15131.03681.541.4045
TATA -0.1275-0.0858-0.0492-0.166-0.112-0.07-0.0596-0.1133-0.169-0.2272
M-score -2.98-2.32-2.63-3.25-2.74-1.57-0.81-1.42-3.96-3.65

Westport Innovations Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 1.21410.6810.18940.16720.91341.16661.3191.29611.04571.2501
GMI 3.65083.03950.13670.17890.38580.51940.67960.72581.25290.9946
AQI 0.92210.91640.77080.84971.23451.1871.19730.9861.12291.0804
SGI 1.0541.81217.01036.18850.82090.68650.59950.66050.76720.8223
DEPI 0.84080.81960.79030.73990.80130.8050.82860.91911.0786
SGAI 0.93720.54990.13050.13971.06631.18351.37371.28151.04381.0797
LVGI 1.03680.96661.03391.04341.541.54631.45041.6411.40451.4259
TATA -0.1194-0.1183-0.1131-0.1216-0.169-0.198-0.207-0.3877-0.2289-0.2351
M-score -1.44-1.491.170.42-3.95-3.94-3.83-4.74-3.67-3.62
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