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Pixelworks Inc (NAS:PXLW)
Beneish M-Score
-3.16 (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 -3.16 suggests that the company is not a manipulator.

PXLW' s 10-Year Beneish M-Score Range
Min: -5.68   Max: -1.88
Current: -3.16

-5.68
-1.88

During the past 13 years, the highest Beneish M-Score of Pixelworks Inc was -1.88. The lowest was -5.68. And the median was -3.45.


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 * 1.2755+0.528 * 0.8496+0.404 * 0.7383+0.892 * 1.2374+0.115 * 1.2749
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8522+4.679 * -0.2387-0.327 * 0.7071
=-3.16

* 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 $4.12 Mil.
Revenue was 15.166 + 13.541 + 14.984 + 15.309 = $59.00 Mil.
Gross Profit was 7.661 + 7.995 + 8.489 + 9.322 = $33.47 Mil.
Total Current Assets was $29.47 Mil.
Total Assets was $38.45 Mil.
Property, Plant and Equipment(Net PPE) was $7.08 Mil.
Depreciation, Depletion and Amortization(DDA) was $4.56 Mil.
Selling, General & Admin. Expense(SGA) was $14.77 Mil.
Total Current Liabilities was $16.99 Mil.
Long-Term Debt was $0.00 Mil.
Net Income was -2.382 + -2.507 + -0.05 + 1.509 = $-3.43 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was 1.172 + 1.17 + -2.995 + 6.402 = $5.75 Mil.
Accounts Receivable was $2.61 Mil.
Revenue was 9.554 + 8.271 + 13.571 + 16.285 = $47.68 Mil.
Gross Profit was 4.622 + 3.977 + 6.592 + 7.788 = $22.98 Mil.
Total Current Assets was $17.27 Mil.
Total Assets was $23.38 Mil.
Property, Plant and Equipment(Net PPE) was $4.54 Mil.
Depreciation, Depletion and Amortization(DDA) was $4.53 Mil.
Selling, General & Admin. Expense(SGA) was $14.01 Mil.
Total Current Liabilities was $14.61 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)
=(4.124 / 59) / (2.613 / 47.681)
=0.06989831 / 0.0548017
=1.2755

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)
=(7.995 / 47.681) / (7.661 / 59)
=0.48193201 / 0.56723729
=0.8496

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 - (29.474 + 7.082) / 38.453) / (1 - (17.269 + 4.544) / 23.375)
=0.04933295 / 0.06682353
=0.7383

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
=59 / 47.681
=1.2374

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))
=(4.526 / (4.526 + 4.544)) / (4.555 / (4.555 + 7.082))
=0.49900772 / 0.39142391
=1.2749

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)
=(14.769 / 59) / (14.005 / 47.681)
=0.25032203 / 0.29372287
=0.8522

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 + 16.993) / 38.453) / ((0 + 14.609) / 23.375)
=0.44191611 / 0.62498396
=0.7071

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
=(-3.43 - 0 - 5.749) / 38.453
=-0.2387

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 -3.16 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.

Pixelworks Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 1.37931.40020.60070.84221.22961.27390.70171.09290.89571.5663
GMI 0.91581.33971.87680.44330.88941.10910.96580.98420.94020.9108
AQI 0.81291.17180.37890.82810.75431.40450.65190.74130.69851.2514
SGI 1.25040.97440.77810.79320.80360.71741.13810.92920.92420.8059
DEPI 1.15351.06050.80660.68871.1421.13151.17611.19420.95350.8278
SGAI 0.86511.11731.47140.91480.87791.06770.96961.08321.05921.1528
LVGI 7.30271.13271.87571.13690.97170.80840.81720.56531.06041.0812
TATA -0.0181-0.1005-0.4503-0.1981-0.2023-0.1474-0.0303-0.2107-0.2531-0.2092
M-score -4.13-2.41-5.33-4.17-3.50-2.88-2.85-3.41-4.02-3.13

Pixelworks Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 1.56991.10610.84780.89570.43150.66620.88661.56631.8281.2755
GMI 0.93290.92790.94630.94021.01461.03130.94340.91080.85080.8496
AQI 0.94960.62450.65250.69850.741.15441.59991.25140.9670.7383
SGI 0.98021.02421.01680.92420.83520.74420.74170.80590.99511.2374
DEPI 0.89180.84150.97270.95350.92980.90720.83210.82781.10361.2749
SGAI 1.03651.02081.02571.05921.12541.20751.19531.15280.99180.8522
LVGI 0.51481.24621.06311.06041.51041.39581.0381.08120.80740.7071
TATA -0.1267-0.1773-0.1751-0.2531-0.4776-0.4323-0.376-0.2092-0.2226-0.2387
M-score -2.48-3.48-3.62-4.02-5.68-5.13-4.43-3.13-2.78-3.16
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