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PokerTek Inc (NAS:PTEK)
Beneish M-Score
0.00 (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.

PokerTek Inc has a M-score of -3.73 suggests that the company is not a manipulator.

During the past 10 years, the highest Beneish M-Score of PokerTek Inc was 0.00. The lowest was 0.00. And the median was 0.00.


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 PokerTek 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 * 0.69+0.528 * 1.0353+0.404 * 1.3541+0.892 * 0.8467+0.115 * 1.0025
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1354+4.679 * -0.2073-0.327 * 0.9817
=-3.73

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was $0.42 Mil.
Revenue was 0.951 + 1.115 + 1.408 + 1.143 = $4.62 Mil.
Gross Profit was 0.686 + 0.843 + 0.913 + 0.83 = $3.27 Mil.
Total Current Assets was $1.74 Mil.
Total Assets was $3.47 Mil.
Property, Plant and Equipment(Net PPE) was $0.03 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.68 Mil.
Selling, General & Admin. Expense(SGA) was $3.78 Mil.
Total Current Liabilities was $0.80 Mil.
Long-Term Debt was $0.13 Mil.
Net Income was -0.535 + -0.286 + -0.121 + -0.266 = $-1.21 Mil.
Non Operating Income was 0 + 0 + 0.058 + -0.018 = $0.04 Mil.
Cash Flow from Operations was -0.182 + 0.181 + -0.304 + -0.223 = $-0.53 Mil.
Accounts Receivable was $0.72 Mil.
Revenue was 1.604 + 1.391 + 1.344 + 1.114 = $5.45 Mil.
Gross Profit was 1.238 + 1.038 + 0.936 + 0.789 = $4.00 Mil.
Total Current Assets was $3.09 Mil.
Total Assets was $4.90 Mil.
Property, Plant and Equipment(Net PPE) was $0.03 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.79 Mil.
Selling, General & Admin. Expense(SGA) was $3.93 Mil.
Total Current Liabilities was $1.14 Mil.
Long-Term Debt was $0.21 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)
=(0.423 / 4.617) / (0.724 / 5.453)
=0.09161793 / 0.13277095
=0.69

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)
=(0.843 / 5.453) / (0.686 / 4.617)
=0.73372456 / 0.70868529
=1.0353

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 - (1.741 + 0.026) / 3.474) / (1 - (3.092 + 0.028) / 4.897)
=0.49136442 / 0.36287523
=1.3541

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
=4.617 / 5.453
=0.8467

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))
=(0.786 / (0.786 + 0.028)) / (0.681 / (0.681 + 0.026))
=0.96560197 / 0.96322489
=1.0025

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)
=(3.78 / 4.617) / (3.932 / 5.453)
=0.81871345 / 0.72107097
=1.1354

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)
=((0.132 + 0.804) / 3.474) / ((0.207 + 1.137) / 4.897)
=0.26943005 / 0.27445375
=0.9817

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
=(-1.208 - 0.04 - -0.528) / 3.474
=-0.2073

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.

PokerTek Inc has a M-score of -3.73 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.

PokerTek Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 0.28571.76120.45841.9650.82290.6241.37210.9321
GMI 2.04270.64621.79520.83750.67480.93610.9661.0019
AQI 173.141113.72650.88471.23491.27950.64331.65920.9843
SGI 6.30572.02273.60170.37531.08961.10120.7971.0715
DEPI 0.46030.24470.93830.88680.96990.98711.00441.0004
SGAI 0.54820.79250.27511.62160.82610.85810.94250.9654
LVGI 7.03612.14223.39320.69671.35730.88540.67820.73
TATA -0.04360.0903-0.0712-0.4021-0.5889-0.2027-0.0046-0.1221
M-score 69.534.09-1.28-4.04-5.47-3.80-1.98-2.96

PokerTek Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 0.57940.64880.77981.37191.00881.24790.88870.93250.75230.69
GMI 0.95810.99040.96280.96621.00120.97720.9861.00120.9871.0353
AQI 0.75410.87081.06341.65921.26561.11041.04330.98431.27621.3541
SGI 0.98650.88320.76550.79710.78760.9481.05991.07111.07750.8467
DEPI 0.9930.99811.01751.00441.00051.00190.99361.00041.0051.0025
SGAI 0.89270.95760.98820.94231.02860.94820.95970.96570.94141.1354
LVGI 0.72490.86880.63010.67820.77840.7120.87610.730.73560.9817
TATA -0.1809-0.1559-0.1263-0.0233-0.0823-0.1058-0.1322-0.1319-0.1196-0.2073
M-score -3.74-3.64-3.35-2.06-2.87-2.66-3.09-3.01-3.00-3.73
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