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Westport Innovations Inc (NAS:WPRT)
Beneish M-Score
-4.42 (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 -4.74 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: -4.42

-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 -2.48.


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 * 1.2623+0.528 * 0.7453+0.404 * 0.986+0.892 * 0.6782+0.115 * 0.919
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.2481+4.679 * -0.3877-0.327 * 1.641
=-4.74

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $35.8 Mil.
Revenue was 22.327 + 27.846 + 28.022 + 27.395 = $105.6 Mil.
Gross Profit was 1.301 + 9.737 + 5.424 + -1.196 = $15.3 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.
Net Income was -37.384 + -20.489 + -17.204 + -64.92 = $-140.0 Mil.
Non Operating Income was 3.571 + 3.529 + 6.312 + 11.402 = $24.8 Mil.
Cash Flow from Operations was -15.073 + -16.729 + -22.512 + -23.35 = $-77.7 Mil.
Accounts Receivable was $41.8 Mil.
Revenue was 25.301 + 37.862 + 39.928 + 52.595 = $155.7 Mil.
Gross Profit was 7.969 + 13.601 + 12.272 + -17.067 = $16.8 Mil.
Total Current Assets was $229.0 Mil.
Total Assets was $392.5 Mil.
Property, Plant and Equipment(Net PPE) was $60.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $18.2 Mil.
Selling, General & Admin. Expense(SGA) was $65.8 Mil.
Total Current Liabilities was $74.5 Mil.
Long-Term Debt was $54.6 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)
=(35.775 / 105.59) / (41.788 / 155.686)
=0.33881049 / 0.26841206
=1.2623

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)
=(9.737 / 155.686) / (1.301 / 105.59)
=0.10774893 / 0.14457809
=0.7453

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 - (120.424 + 46.256) / 224.755) / (1 - (228.965 + 60.681) / 392.504)
=0.25839247 / 0.26205593
=0.986

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
=105.59 / 155.686
=0.6782

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))
=(18.187 / (18.187 + 60.681)) / (15.494 / (15.494 + 46.256))
=0.2306005 / 0.25091498
=0.919

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)
=(55.675 / 105.59) / (65.773 / 155.686)
=0.52727531 / 0.42247216
=1.2481

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)
=((52.543 + 68.735) / 224.755) / ((54.576 + 74.491) / 392.504)
=0.5396009 / 0.32882977
=1.641

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
=(-139.997 - 24.814 - -77.664) / 224.755
=-0.3877

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 -4.74 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

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
DSRI 0.64460.71111.06241.0170.9260.97091.17461.28861.2623
GMI 1.05280.82313.11711.97282.81020.37380.51590.69560.7453
AQI 1.70961.84020.91640.77080.74951.23451.1871.19730.986
SGI 1.05991.95331.16151.30551.02860.79550.68190.61370.6782
DEPI 1.09331.0010.82150.79380.7510.80130.8050.82860.919
SGAI 1.31920.72380.83990.65680.75861.10041.19151.34211.2481
LVGI 1.24041.20510.96661.03391.07361.541.54631.45041.641
TATA -0.0836-0.03-0.1838-0.1867-0.2017-0.169-0.198-0.207-0.3877
M-score -2.95-1.81-2.04-2.62-2.62-3.93-3.94-3.83-4.74
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