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Westport Fuel Systems Inc (NAS:WPRT)
Beneish M-Score
-2.54 (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 Fuel Systems Inc has a M-score of -2.52 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: -2.54

-10000000
406566.91

During the past 13 years, the highest Beneish M-Score of Westport Fuel Systems Inc was 406566.91. The lowest was -10000000.00. And the median was -2.20.


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 Fuel Systems 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 * 1.7477+0.528 * 1.0613+0.404 * 0.5228+0.892 * 1.0667+0.115 * 1.5696
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9712+4.679 * -0.1461-0.327 * 1.0447
=-2.52

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $79.1 Mil.
Revenue was 44.357 + 24.011 + 25.109 + 22.327 = $115.8 Mil.
Gross Profit was 10.001 + 6.763 + 3.528 + 1.301 = $21.6 Mil.
Total Current Assets was $274.5 Mil.
Total Assets was $401.1 Mil.
Property, Plant and Equipment(Net PPE) was $66.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $13.3 Mil.
Selling, General & Admin. Expense(SGA) was $59.4 Mil.
Total Current Liabilities was $135.4 Mil.
Long-Term Debt was $62.7 Mil.
Net Income was 3.722 + -23.279 + -23.311 + -37.384 = $-80.3 Mil.
Non Operating Income was 44.289 + 2.003 + 4.905 + 3.571 = $54.8 Mil.
Cash Flow from Operations was -23.849 + -23.088 + -14.403 + -15.073 = $-76.4 Mil.
Accounts Receivable was $42.4 Mil.
Revenue was 27.846 + 28.022 + 27.395 + 25.301 = $108.6 Mil.
Gross Profit was 9.287 + 5.424 + -1.196 + 7.969 = $21.5 Mil.
Total Current Assets was $150.9 Mil.
Total Assets was $277.8 Mil.
Property, Plant and Equipment(Net PPE) was $47.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $16.8 Mil.
Selling, General & Admin. Expense(SGA) was $57.3 Mil.
Total Current Liabilities was $78.9 Mil.
Long-Term Debt was $52.4 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)
=(79.059 / 115.804) / (42.408 / 108.564)
=0.68269663 / 0.39062673
=1.7477

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)
=(21.484 / 108.564) / (21.593 / 115.804)
=0.19789249 / 0.18646161
=1.0613

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 - (274.478 + 66.937) / 401.108) / (1 - (150.919 + 47.771) / 277.755)
=0.14882027 / 0.28465734
=0.5228

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
=115.804 / 108.564
=1.0667

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))
=(16.832 / (16.832 + 47.771)) / (13.323 / (13.323 + 66.937))
=0.26054518 / 0.16599801
=1.5696

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)
=(59.37 / 115.804) / (57.307 / 108.564)
=0.51267659 / 0.52786375
=0.9712

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)
=((62.657 + 135.356) / 401.108) / ((52.389 + 78.865) / 277.755)
=0.49366505 / 0.47255315
=1.0447

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
=(-80.252 - 54.768 - -76.413) / 401.108
=-0.1461

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 Fuel Systems Inc has a M-score of -2.52 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 Fuel Systems Inc Annual Data

Mar06Mar07Mar08Mar09Mar10Mar11Dec12Dec13Dec14Dec15
DSRI 0.80341.27680.54610.59811.59341.14942.52041.17880.97031.014
GMI 0.90540.93691.16111.2330.80290.82461.1293.65080.37411.2921
AQI 1.46190.81311.08940.18940.49943.37472.40820.92211.26521.0957
SGI 1.31231.40341.32571.57141.11391.21711.05111.0540.7960.7912
DEPI 1.27461.53380.90281.60180.76231.05731.40060.84080.80131
SGAI 0.89080.93811.00440.90111.13961.18451.73440.93721.09961.0121
LVGI 1.58471.03940.6850.88660.84190.84531.15131.03681.52471.4186
TATA -0.1275-0.0858-0.0492-0.1884-0.1114-0.07-0.0596-0.1669-0.17-0.2272
M-score -2.98-2.32-2.63-3.30-2.66-1.58-0.81-1.70-3.92-3.66

Westport Fuel Systems Inc Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 0.68880.19390.17160.97091.17461.28861.26231.01331.22761.7477
GMI 3.00510.13360.17430.37380.51590.71020.76791.32271.03461.0613
AQI 0.91640.77080.84971.26521.1871.19730.9861.09571.08040.5228
SGI 1.79166.84896.02710.79550.68190.61370.67820.79170.83741.0667
DEPI 0.81460.78770.73740.80130.8050.82860.91911.07861.5696
SGAI 0.55620.13350.14341.10041.19151.34211.24811.01151.06020.9712
LVGI 0.96661.03391.04341.52471.54631.45041.6411.41861.42591.0447
TATA -0.1838-0.1867-0.2017-0.17-0.198-0.207-0.3877-0.2289-0.2351-0.1461
M-score -1.830.69-0.10-3.92-3.94-3.83-4.73-3.65-3.61-2.52
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