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Pixelworks Inc (NAS:PXLW)
Beneish M-Score
-3.75 (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.

Pixelworks Inc has a M-score of -3.75 suggests that the company is not a manipulator.

PXLW' s Beneish M-Score Range Over the Past 10 Years
Min: -8.37   Max: -1.86
Current: -3.75

-8.37
-1.86

During the past 13 years, the highest Beneish M-Score of Pixelworks Inc was -1.86. The lowest was -8.37. And the median was -3.55.


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 Pixelworks 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 * 0.9888+0.528 * 1.0692+0.404 * 1.5544+0.892 * 0.8321+0.115 * 0.8362
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1079+4.679 * -0.2812-0.327 * 1.0476
=-3.75

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $3.90 Mil.
Revenue was 13.656 + 12.58 + 11.167 + 13.477 = $50.88 Mil.
Gross Profit was 6.557 + 6.415 + 3.592 + 6.814 = $23.38 Mil.
Total Current Assets was $24.22 Mil.
Total Assets was $29.25 Mil.
Property, Plant and Equipment(Net PPE) was $4.27 Mil.
Depreciation, Depletion and Amortization(DDA) was $3.68 Mil.
Selling, General & Admin. Expense(SGA) was $15.69 Mil.
Total Current Liabilities was $9.70 Mil.
Long-Term Debt was $0.00 Mil.
Net Income was -1.242 + -1.56 + -8.642 + -3.167 = $-14.61 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was 0.45 + -1.535 + -3.477 + -1.825 = $-6.39 Mil.
Accounts Receivable was $4.73 Mil.
Revenue was 16.57 + 15.078 + 14.392 + 15.105 = $61.15 Mil.
Gross Profit was 8.278 + 7.234 + 6.967 + 7.559 = $30.04 Mil.
Total Current Assets was $38.27 Mil.
Total Assets was $45.88 Mil.
Property, Plant and Equipment(Net PPE) was $6.85 Mil.
Depreciation, Depletion and Amortization(DDA) was $4.32 Mil.
Selling, General & Admin. Expense(SGA) was $17.02 Mil.
Total Current Liabilities was $14.52 Mil.
Long-Term Debt was $0.00 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)
=(3.895 / 50.88) / (4.734 / 61.145)
=0.07655267 / 0.07742252
=0.9888

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)
=(30.038 / 61.145) / (23.378 / 50.88)
=0.49125848 / 0.45947327
=1.0692

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 - (24.22 + 4.269) / 29.248) / (1 - (38.265 + 6.852) / 45.883)
=0.02595049 / 0.01669464
=1.5544

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
=50.88 / 61.145
=0.8321

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))
=(4.324 / (4.324 + 6.852)) / (3.676 / (3.676 + 4.269))
=0.3869005 / 0.46268093
=0.8362

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)
=(15.692 / 50.88) / (17.022 / 61.145)
=0.30841195 / 0.27838744
=1.1079

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 + 9.696) / 29.248) / ((0 + 14.519) / 45.883)
=0.33150985 / 0.31643528
=1.0476

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
=(-14.611 - 0 - -6.387) / 29.248
=-0.2812

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.

Pixelworks Inc has a M-score of -3.75 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 local exchange's currency.

Pixelworks Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.60070.84221.22961.27390.70171.09290.89571.56630.77111.3187
GMI 1.87680.44330.88941.10910.96580.98420.94020.91081.05211.0599
AQI 0.37890.82810.75431.40450.65190.74130.69851.25140.5780.4565
SGI 0.77810.79320.80360.71741.13810.92920.92420.80591.26610.9769
DEPI 0.80660.68871.1421.13151.17611.19420.95350.82781.25541.0482
SGAI 1.47140.91480.87791.06770.96961.08321.12251.18210.93580.938
LVGI 1.87571.13690.97170.6031.09550.56531.06041.08121.07370.7685
TATA -1.0992-0.1787-0.2023-0.1474-0.0303-0.2107-0.2531-0.2092-0.3411-0.1533
M-score -8.37-4.08-3.50-2.82-2.94-3.41-4.03-3.13-4.18-3.02

Pixelworks Inc Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 1.27551.90450.77110.94311.09770.76871.31871.31270.93180.9888
GMI 0.84960.97561.05211.14481.15381.09511.05991.08131.05371.0692
AQI 0.73830.51260.5780.69110.60090.37320.45650.53790.82071.5544
SGI 1.23741.30181.26611.15711.04551.00560.97690.91130.87210.8321
DEPI 1.27491.21381.25540.96481.02141.04631.04820.89090.86170.8362
SGAI 0.86650.870.93580.98521.05321.02110.9381.01341.04021.1079
LVGI 0.70711.10431.07371.14731.18640.71060.76850.93410.71.0476
TATA -0.2387-0.1609-0.3411-0.2983-0.2794-0.1758-0.1533-0.2859-0.2424-0.2812
M-score -3.17-2.33-4.18-3.89-3.80-3.62-3.02-3.75-3.76-3.75
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