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Premier Exhibitions, Inc. (NAS:PRXI)
Beneish M-Score
-2.55 (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 -2.55 suggests that the company is not a manipulator.

PRXI' s 10-Year Beneish M-Score Range
Min: -5.56   Max: 13.08
Current: -2.55

-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 * 1.3451+0.528 * 1.0797+0.404 * 1.4033+0.892 * 0.739+0.115 * 0.8292
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1625+4.679 * -0.0596-0.327 * 1.102
=-2.55

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

This Year (Nov13) TTM:Last Year (Nov12) TTM:
Accounts Receivable was $1.82 Mil.
Revenue was 6.392 + 7.819 + 8.94 + 6.663 = $29.81 Mil.
Gross Profit was 2.35 + 4.004 + 5.293 + 2.77 = $14.42 Mil.
Total Current Assets was $10.22 Mil.
Total Assets was $32.08 Mil.
Property, Plant and Equipment(Net PPE) was $9.99 Mil.
Depreciation, Depletion and Amortization(DDA) was $3.94 Mil.
Selling, General & Admin. Expense(SGA) was $13.03 Mil.
Total Current Liabilities was $7.01 Mil.
Long-Term Debt was $1.43 Mil.
Net Income was -0.233 + -0.062 + 0.971 + -1.098 = $-0.42 Mil.
Non Operating Income was 0.071 + 0.154 + -0.007 + 0.003 = $0.22 Mil.
Cash Flow from Operations was -0.444 + 0.486 + 0.922 + 0.305 = $1.27 Mil.
Accounts Receivable was $1.83 Mil.
Revenue was 7.912 + 13.43 + 11.46 + 7.544 = $40.35 Mil.
Gross Profit was 3.49 + 8.188 + 6.272 + 3.114 = $21.06 Mil.
Total Current Assets was $13.29 Mil.
Total Assets was $34.14 Mil.
Property, Plant and Equipment(Net PPE) was $11.85 Mil.
Depreciation, Depletion and Amortization(DDA) was $3.63 Mil.
Selling, General & Admin. Expense(SGA) was $15.17 Mil.
Total Current Liabilities was $7.90 Mil.
Long-Term Debt was $0.26 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)
=(1.816 / 29.814) / (1.827 / 40.346)
=0.06091098 / 0.0452833
=1.3451

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)
=(4.004 / 40.346) / (2.35 / 29.814)
=0.52208397 / 0.48356477
=1.0797

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 - (10.217 + 9.99) / 32.082) / (1 - (13.291 + 11.847) / 34.144)
=0.37014525 / 0.26376523
=1.4033

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
=29.814 / 40.346
=0.739

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))
=(3.633 / (3.633 + 11.847)) / (3.944 / (3.944 + 9.99))
=0.23468992 / 0.28304866
=0.8292

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)
=(13.027 / 29.814) / (15.165 / 40.346)
=0.43694238 / 0.37587369
=1.1625

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)
=((1.429 + 7.011) / 32.082) / ((0.255 + 7.896) / 34.144)
=0.26307587 / 0.23872423
=1.102

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
=(-0.422 - 0.221 - 1.269) / 32.082
=-0.0596

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 -2.55 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

Feb04Feb05Feb06Feb07Feb08Feb09Feb10Feb11Feb12Feb13
DSRI 2.75491.25070.78851.51770.60241.48230.80720.50030.78550.7453
GMI 0.98381.76850.68611.06671.11831.56880.94291.76650.55390.8677
AQI 1.34080.78180.83770.39931.65040.99550.36982.54771.15271.35
SGI 1.0012.39421.90192.30712.04250.8770.80581.03050.70861.2446
DEPI 1.82360.33771.151.09531.04241.20730.88710.93021.03661.0019
SGAI 1.20980.53980.79160.63990.98321.62251.09480.75691.02990.8385
LVGI 0.78221.66430.41940.47361.23613.71340.63181.63931.16031.2226
TATA 0.064-0.10510.1372-0.1539-0.0956-0.2209-0.3909-0.3157-0.1945-0.0918
M-score -0.31-1.39-1.22-1.52-2.11-3.85-4.85-3.53-4.07-2.90

Premier Exhibitions, Inc. Quarterly Data

Aug11Nov11Feb12May12Aug12Nov12Feb13May13Aug13Nov13
DSRI 0.32930.62240.78551.09191.47461.56430.74531.20760.73961.3451
GMI 1.22030.66870.55390.61340.54880.75640.86770.84941.03371.0797
AQI 1.58541.49971.15270.77520.82110.86231.351.89881.22851.4033
SGI 0.86530.74820.70860.77041.01951.18931.24461.10460.81050.739
DEPI 0.93841.01281.03661.27861.25281.10251.00190.77361.00470.8292
SGAI 1.05761.14591.03161.06880.880.79560.83840.87541.05091.1625
LVGI 1.6621.19761.16031.93481.1490.79181.22260.92961.07931.102
TATA -0.4104-0.2437-0.1946-0.1577-0.0932-0.1043-0.0918-0.0541-0.109-0.0596
M-score -5.02-4.25-4.08-3.92-2.77-2.35-2.90-2.15-3.32-2.55
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