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Premier Exhibitions Inc (NAS:PRXI)
Beneish M-Score
-3.05 (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.

Premier Exhibitions Inc has a M-score of -3.05 suggests that the company is not a manipulator.

PRXI' s 10-Year Beneish M-Score Range
Min: -5.56   Max: 13.08
Current: -3.05

-5.56
13.08

During the past 13 years, the highest Beneish M-Score of Premier Exhibitions Inc was 13.08. The lowest was -5.56. 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 Premier Exhibitions 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 * 1.133+0.528 * 1.2665+0.404 * 0.9266+0.892 * 0.7551+0.115 * 0.8788
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.193+4.679 * -0.1223-0.327 * 0.8877
=-3.05

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

This Year (May14) TTM:Last Year (May13) TTM:
Accounts Receivable was $1.78 Mil.
Revenue was 7.491 + 6.197 + 6.392 + 7.819 = $27.90 Mil.
Gross Profit was 3.084 + 2.333 + 2.35 + 4.004 = $11.77 Mil.
Total Current Assets was $9.26 Mil.
Total Assets was $30.69 Mil.
Property, Plant and Equipment(Net PPE) was $8.82 Mil.
Depreciation, Depletion and Amortization(DDA) was $4.32 Mil.
Selling, General & Admin. Expense(SGA) was $12.69 Mil.
Total Current Liabilities was $8.73 Mil.
Long-Term Debt was $1.18 Mil.
Net Income was -1.212 + -1.39 + -0.233 + -0.062 = $-2.90 Mil.
Non Operating Income was 0.018 + -0.066 + 0.071 + 0.154 = $0.18 Mil.
Cash Flow from Operations was 1.119 + -0.481 + -0.444 + 0.486 = $0.68 Mil.
Accounts Receivable was $2.08 Mil.
Revenue was 8.94 + 6.663 + 7.912 + 13.43 = $36.95 Mil.
Gross Profit was 5.293 + 2.77 + 3.49 + 8.188 = $19.74 Mil.
Total Current Assets was $12.53 Mil.
Total Assets was $38.41 Mil.
Property, Plant and Equipment(Net PPE) was $8.86 Mil.
Depreciation, Depletion and Amortization(DDA) was $3.60 Mil.
Selling, General & Admin. Expense(SGA) was $14.08 Mil.
Total Current Liabilities was $11.27 Mil.
Long-Term Debt was $2.71 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)
=(1.777 / 27.899) / (2.077 / 36.945)
=0.06369404 / 0.0562187
=1.133

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)
=(2.333 / 36.945) / (3.084 / 27.899)
=0.53433482 / 0.42191476
=1.2665

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 - (9.262 + 8.82) / 30.687) / (1 - (12.527 + 8.858) / 38.414)
=0.41076026 / 0.44330192
=0.9266

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
=27.899 / 36.945
=0.7551

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))
=(3.596 / (3.596 + 8.858)) / (4.316 / (4.316 + 8.82))
=0.28874257 / 0.32856273
=0.8788

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)
=(12.686 / 27.899) / (14.081 / 36.945)
=0.45471164 / 0.38113412
=1.193

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)
=((1.179 + 8.734) / 30.687) / ((2.705 + 11.274) / 38.414)
=0.32303581 / 0.36390379
=0.8877

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
=(-2.897 - 0.177 - 0.68) / 30.687
=-0.1223

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.

Premier Exhibitions Inc has a M-score of -3.05 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.

Premier Exhibitions Inc Annual Data

Feb05Feb06Feb07Feb08Feb09Feb10Feb11Feb12Feb13Feb14
DSRI 1.25070.78851.51770.60241.48230.80720.50030.78550.74531.3998
GMI 1.76850.68611.06671.11831.56880.94291.76650.55390.86771.1022
AQI 0.78180.83770.39931.65040.99550.36982.54771.15271.350.8662
SGI 2.39421.90192.30712.04250.8770.80581.03050.70861.24460.7436
DEPI 0.33771.151.09531.04241.20730.88710.93021.03661.00190.8913
SGAI 0.53980.79160.63990.98321.62251.09480.75691.02990.83931.1716
LVGI 1.66430.41940.47361.23613.71340.63181.63931.16031.22260.6952
TATA -0.10510.1372-0.1539-0.0956-0.2209-0.3909-0.3157-0.1945-0.0918-0.0446
M-score -1.39-1.22-1.52-2.11-3.85-4.85-3.53-4.07-2.90-2.49

Premier Exhibitions Inc Quarterly Data

Feb12May12Aug12Nov12Feb13May13Aug13Nov13Feb14May14
DSRI 0.78551.09191.47461.56430.74531.20760.73961.34511.39981.133
GMI 0.55390.61340.54880.75640.86770.84941.03371.07971.10221.2665
AQI 1.15270.77520.82110.86231.351.89881.22851.40330.86620.9266
SGI 0.70860.77041.01951.18931.24461.10460.81050.7390.74360.7551
DEPI 1.03661.27861.25281.10251.00190.77361.00470.82920.89130.8788
SGAI 1.03161.06880.880.79560.83920.87631.0521.16371.17161.193
LVGI 1.16031.93481.1490.79181.22260.92961.07931.1020.69520.8877
TATA -0.1946-0.1577-0.0932-0.1043-0.0918-0.0541-0.109-0.0596-0.0446-0.1223
M-score -4.08-3.92-2.77-2.35-2.90-2.15-3.32-2.55-2.49-3.05
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