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Premier Exhibitions Inc (NAS:PRXI)
Beneish M-Score
-3.02 (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 -3.02 suggests that the company is not a manipulator.

PRXI' s 10-Year Beneish M-Score Range
Min: -5.3   Max: 4.54
Current: -3.02

-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 -2.63.


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 * 0.905+0.528 * 1.3367+0.404 * 1.4948+0.892 * 0.963+0.115 * 0.7433
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0461+4.679 * -0.1226-0.327 * 1.5696
=-3.02

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

This Year (Nov14) TTM:Last Year (Nov13) TTM:
Accounts Receivable was $1.37 Mil.
Revenue was 6.727 + 8.297 + 7.491 + 6.197 = $28.71 Mil.
Gross Profit was 1.943 + 3.027 + 3.084 + 2.333 = $10.39 Mil.
Total Current Assets was $11.55 Mil.
Total Assets was $42.15 Mil.
Property, Plant and Equipment(Net PPE) was $7.28 Mil.
Depreciation, Depletion and Amortization(DDA) was $4.48 Mil.
Selling, General & Admin. Expense(SGA) was $13.14 Mil.
Total Current Liabilities was $17.18 Mil.
Long-Term Debt was $0.22 Mil.
Net Income was -2.133 + -1.653 + -1.212 + -1.39 = $-6.39 Mil.
Non Operating Income was 0.004 + 0.02 + 0.018 + -0.066 = $-0.02 Mil.
Cash Flow from Operations was -2.49 + 0.657 + 1.119 + -0.481 = $-1.20 Mil.
Accounts Receivable was $1.57 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 $13.04 Mil.
Total Current Liabilities was $7.01 Mil.
Long-Term Debt was $1.43 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)
=(1.371 / 28.712) / (1.573 / 29.814)
=0.04775007 / 0.05276045
=0.905

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)
=(3.027 / 29.814) / (1.943 / 28.712)
=0.48356477 / 0.36176512
=1.3367

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 - (11.552 + 7.277) / 42.15) / (1 - (10.217 + 9.99) / 32.082)
=0.55328588 / 0.37014525
=1.4948

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
=28.712 / 29.814
=0.963

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))
=(3.944 / (3.944 + 9.99)) / (4.475 / (4.475 + 7.277))
=0.28304866 / 0.38078625
=0.7433

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)
=(13.138 / 28.712) / (13.041 / 29.814)
=0.45757871 / 0.43741195
=1.0461

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)
=((0.223 + 17.182) / 42.15) / ((1.429 + 7.011) / 32.082)
=0.41293001 / 0.26307587
=1.5696

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
=(-6.388 - -0.024 - -1.195) / 42.15
=-0.1226

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 -3.02 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 1.25070.78850.83410.57631.61070.63950.89840.81090.79191.3064
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 -1.39-1.22-2.15-2.13-3.73-5.01-3.17-4.05-2.86-2.58

Premier Exhibitions Inc Quarterly Data

Aug12Nov12Feb13May13Aug13Nov13Feb14May14Aug14Nov14
DSRI 1.71232.05830.79191.07830.64931.27311.30641.17081.03930.905
GMI 0.54880.75640.86770.84941.03371.07971.10221.26651.30531.3367
AQI 0.82110.86231.351.89881.22851.40330.86620.92661.40961.4948
SGI 1.01951.18931.24461.10460.81050.7390.74360.75510.90560.963
DEPI 1.25281.10251.00190.77361.00470.82920.89130.87880.62860.7433
SGAI 0.880.79560.83920.87631.0521.16371.19881.2211.13291.0461
LVGI 1.1490.79181.22260.92961.07931.1020.69520.88771.10781.5696
TATA -0.0932-0.1043-0.0918-0.0541-0.109-0.0596-0.0446-0.1223-0.1812-0.1226
M-score -2.55-1.89-2.86-2.27-3.41-2.62-2.58-3.02-3.15-3.02
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