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Westport Fuel Systems Inc (NAS:WPRT)
Beneish M-Score
-2.51 (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 -2.51 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: -2.51

-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 -2.53.


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 * 1.2593+0.528 * 0.658+0.404 * 0.5563+0.892 * 1.6063+0.115 * 1.3328
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.7232+4.679 * -0.1147-0.327 * 0.9952
=-2.51

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $72.4 Mil.
Revenue was 76.127 + 44.357 + 24.011 + 25.109 = $169.6 Mil.
Gross Profit was 13.286 + 10.001 + 6.763 + 4.973 = $35.0 Mil.
Total Current Assets was $241.2 Mil.
Total Assets was $358.4 Mil.
Property, Plant and Equipment(Net PPE) was $65.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $15.2 Mil.
Selling, General & Admin. Expense(SGA) was $64.7 Mil.
Total Current Liabilities was $162.4 Mil.
Long-Term Debt was $30.1 Mil.
Net Income was -33.255 + 3.722 + -23.279 + -23.311 = $-76.1 Mil.
Non Operating Income was 2.317 + 44.289 + 2.003 + 4.943 = $53.6 Mil.
Cash Flow from Operations was -27.24 + -23.849 + -23.088 + -14.403 = $-88.6 Mil.
Accounts Receivable was $35.8 Mil.
Revenue was 22.327 + 27.846 + 28.022 + 27.395 = $105.6 Mil.
Gross Profit was 0.832 + 9.287 + 5.424 + -1.196 = $14.3 Mil.
Total Current Assets was $120.4 Mil.
Total Assets was $224.8 Mil.
Property, Plant and Equipment(Net PPE) was $46.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $15.5 Mil.
Selling, General & Admin. Expense(SGA) was $55.7 Mil.
Total Current Liabilities was $68.7 Mil.
Long-Term Debt was $52.5 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)
=(72.366 / 169.604) / (35.775 / 105.59)
=0.42667626 / 0.33881049
=1.2593

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)
=(14.347 / 105.59) / (35.023 / 169.604)
=0.13587461 / 0.20649867
=0.658

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 - (241.245 + 65.654) / 358.42) / (1 - (120.424 + 46.256) / 224.755)
=0.14374477 / 0.25839247
=0.5563

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
=169.604 / 105.59
=1.6063

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))
=(15.494 / (15.494 + 46.256)) / (15.227 / (15.227 + 65.654))
=0.25091498 / 0.18826424
=1.3328

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)
=(64.676 / 169.604) / (55.675 / 105.59)
=0.38133535 / 0.52727531
=0.7232

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)
=((30.069 + 162.409) / 358.42) / ((52.543 + 68.735) / 224.755)
=0.53701802 / 0.5396009
=0.9952

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
=(-76.123 - 53.552 - -88.58) / 358.42
=-0.1147

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 -2.51 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 local exchange's currency.

Westport Fuel Systems Inc Annual Data

Mar06Mar07Mar08Mar09Mar10Mar11Dec12Dec13Dec14Dec15
DSRI 0.80341.27680.54610.47372.0121.07192.54541.25160.97031.014
GMI 0.90540.93691.16111.2330.80290.82461.1293.65080.37411.2921
AQI 1.46190.81311.08940.18930.49953.21892.52470.92211.26521.0957
SGI 1.31231.40341.32571.57141.11391.21711.05111.0540.7960.7912
DEPI 1.27461.53380.90281.33020.91791.09061.35790.84080.80131
SGAI 0.89080.93811.00440.90111.13961.07451.88220.9521.09961.0121
LVGI 1.58471.03940.6850.88660.84190.84711.1491.03681.52471.4186
TATA -0.1275-0.0858-0.0492-0.2378-0.1114-0.0695-0.0621-0.1669-0.17-0.2272
M-score -2.98-2.32-2.63-3.68-2.26-1.69-0.78-1.64-3.92-3.66

Westport Fuel Systems Inc Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 1.0170.9260.97091.17461.28861.26231.01331.22761.74771.2593
GMI 1.97282.81020.37380.51590.71020.7931.25980.98841.01540.658
AQI 0.77080.74951.26521.1871.19730.9861.09571.08040.52280.5563
SGI 1.30551.02860.79550.68190.61370.67820.79170.83741.06671.6063
DEPI 0.79380.7510.80130.8050.82860.91911.07861.56961.3328
SGAI 0.65680.75861.10041.19151.34211.24811.01151.06020.97120.7232
LVGI 1.03391.07361.52471.54631.45041.6411.41861.42591.04470.9952
TATA -0.1867-0.2017-0.17-0.198-0.207-0.3879-0.2293-0.2355-0.1463-0.1147
M-score -2.62-2.62-3.92-3.94-3.83-4.72-3.69-3.63-2.55-2.51
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