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Premier Exhibitions Inc (NAS:PRXI)
Beneish M-Score
-3.35 (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 -3.35 suggests that the company is not a manipulator.

PRXI' s 10-Year Beneish M-Score Range
Min: -5.3   Max: 4.54
Current: -3.35

-5.3
4.54

During the past 13 years, the highest Beneish M-Score of Premier Exhibitions Inc was 4.54. The lowest was -5.30. And the median was -2.79.


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 * 1.0066+0.528 * 1.4885+0.404 * 0.5936+0.892 * 1.0448+0.115 * 1.875
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9174+4.679 * -0.1912-0.327 * 1.6961
=-3.35

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

This Year (May15) TTM:Last Year (May14) TTM:
Accounts Receivable was $1.67 Mil.
Revenue was 7.249 + 6.875 + 6.727 + 8.297 = $29.15 Mil.
Gross Profit was 1.74 + 1.552 + 1.943 + 3.027 = $8.26 Mil.
Total Current Assets was $8.12 Mil.
Total Assets was $38.42 Mil.
Property, Plant and Equipment(Net PPE) was $20.93 Mil.
Depreciation, Depletion and Amortization(DDA) was $4.45 Mil.
Selling, General & Admin. Expense(SGA) was $12.38 Mil.
Total Current Liabilities was $20.78 Mil.
Long-Term Debt was $0.27 Mil.
Net Income was -2.277 + -5.477 + -2.133 + -1.653 = $-11.54 Mil.
Non Operating Income was -0.006 + -0.339 + 0.004 + 0.02 = $-0.32 Mil.
Cash Flow from Operations was -1.369 + -0.672 + -2.49 + 0.657 = $-3.87 Mil.
Accounts Receivable was $1.59 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 $12.92 Mil.
Total Current Liabilities was $8.73 Mil.
Long-Term Debt was $1.18 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)
=(1.669 / 29.148) / (1.587 / 27.899)
=0.0572595 / 0.05688376
=1.0066

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)
=(1.552 / 27.899) / (1.74 / 29.148)
=0.42191476 / 0.28344998
=1.4885

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 - (8.122 + 20.93) / 38.419) / (1 - (9.262 + 8.82) / 30.687)
=0.24381166 / 0.41076026
=0.5936

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
=29.148 / 27.899
=1.0448

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))
=(4.316 / (4.316 + 8.82)) / (4.447 / (4.447 + 20.93))
=0.32856273 / 0.17523742
=1.875

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)
=(12.38 / 29.148) / (12.916 / 27.899)
=0.42472897 / 0.46295566
=0.9174

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)
=((0.267 + 20.783) / 38.419) / ((1.179 + 8.734) / 30.687)
=0.54790598 / 0.32303581
=1.6961

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
=(-11.54 - -0.321 - -3.874) / 38.419
=-0.1912

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 -3.35 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

Feb06Feb07Feb08Feb09Feb10Feb11Feb12Feb13Feb14Feb15
DSRI 0.78850.83410.57631.61070.63950.89840.81090.79191.30641.0631
GMI 0.68611.06671.11831.56880.94291.76650.55390.86771.10221.4574
AQI 0.83770.39931.65040.99550.36982.54771.15271.350.86621.0203
SGI 1.90192.30712.04250.8770.80581.03050.70861.24460.74361.0014
DEPI 1.151.09531.04241.20730.88710.93021.03661.00190.89131.0879
SGAI 0.79160.63990.98321.62251.09480.75691.02990.83931.16541.0076
LVGI 0.41940.47361.23613.71340.63181.63931.16031.22260.69521.7349
TATA 0.1372-0.1539-0.0956-0.2209-0.3909-0.3157-0.1945-0.0918-0.0446-0.2384
M-score -1.22-2.15-2.13-3.73-5.01-3.17-4.05-2.86-2.58-3.52

Premier Exhibitions Inc Quarterly Data

Feb13May13Aug13Nov13Feb14May14Aug14Nov14Feb15May15
DSRI 0.79191.07830.64931.27311.30641.17081.03930.9051.06311.0066
GMI 0.86770.84941.03371.07971.10221.26651.30531.33671.45741.4885
AQI 1.351.89881.22851.40330.86620.92661.40961.49481.02030.5936
SGI 1.24461.10460.81050.7390.74360.75510.90560.9631.00141.0448
DEPI 1.00190.77361.00470.82920.89130.87880.62860.74331.08791.875
SGAI 0.83920.87631.0521.16371.19271.21471.12731.04080.98460.9174
LVGI 1.22260.92961.07931.1020.69520.88771.10781.56961.73491.6961
TATA -0.0918-0.0541-0.109-0.0596-0.0446-0.1223-0.1812-0.1226-0.2384-0.1912
M-score -2.86-2.27-3.41-2.62-2.58-3.02-3.15-3.02-3.51-3.35
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