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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 -2.52.


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 * 1.2961+0.528 * 0.7258+0.404 * 0.986+0.892 * 0.6605+0.115 * 0.919
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.2815+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 + 40.036 + 41.923 + 52.595 = $159.9 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 / 159.855)
=0.33881049 / 0.2614119
=1.2961

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 / 159.855) / (1.301 / 105.59)
=0.10493885 / 0.14457809
=0.7258

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 / 159.855
=0.6605

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 / 159.855)
=0.52727531 / 0.41145413
=1.2815

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

Mar06Mar07Mar08Mar09Mar10Mar11Dec12Dec13Dec14Dec15
DSRI 0.80341.27680.54610.59811.50651.21582.52041.21410.9421.014
GMI 0.90540.93691.16111.2330.80660.82081.1293.65080.37411.2921
AQI 1.46190.81311.08940.18940.49943.37512.40820.92211.23451.1229
SGI 1.31231.40341.32571.57141.17411.15471.05111.0540.7960.7912
DEPI 1.27461.53380.90281.60180.72411.11311.40060.84080.80131
SGAI 0.89080.93811.00440.90111.14191.18211.73440.93721.09961.0121
LVGI 1.58471.03940.6850.88660.84190.84531.15131.03681.541.4045
TATA -0.1275-0.0858-0.0492-0.1884-0.112-0.07-0.0596-0.1133-0.169-0.2272
M-score -2.98-2.32-2.63-3.30-2.69-1.57-0.81-1.42-3.96-3.65

Westport Innovations Inc Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 18.3911.21410.6810.18940.16720.91341.16661.3191.29611.0457
GMI 18.60573.65083.03950.13670.17890.38580.51940.67960.72581.2529
AQI 1.84020.92210.91640.77080.84971.23451.1871.19730.9861.1229
SGI -0.01021.0541.81217.01036.18850.82090.68650.59950.66050.7672
DEPI 1.02380.84080.81960.79030.73990.80130.8050.82860.9191
SGAI 13.82770.93720.54990.13050.13971.06631.18351.37371.28151.0438
LVGI 1.20511.03680.96661.03391.04341.541.54631.45041.6411.4045
TATA -0.0146-0.1194-0.1183-0.1131-0.1216-0.169-0.198-0.207-0.3877-0.2289
M-score 19.91-1.44-1.491.170.42-3.95-3.94-3.83-4.74-3.67
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