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Pixelworks, Inc. (NAS:PXLW)
Beneish M-Score
-3.13 (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 -3.13 suggests that the company is not a manipulator.

PXLW' s 10-Year Beneish M-Score Range
Min: -4.87   Max: -2.16
Current: -3.13

-4.87
-2.16

During the past 13 years, the highest Beneish M-Score of Pixelworks, Inc. was -2.16. The lowest was -4.87. And the median was -3.27.


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 * 1.5663+0.528 * 0.9108+0.404 * 1.2514+0.892 * 0.8059+0.115 * 0.8278
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1528+4.679 * -0.2092-0.327 * 1.0812
=-3.13

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

This Year (Dec13) TTM:Last Year (Dec12) TTM:
Accounts Receivable was $4.76 Mil.
Revenue was 14.984 + 15.309 + 9.554 + 8.271 = $48.12 Mil.
Gross Profit was 8.489 + 9.322 + 4.622 + 3.977 = $26.41 Mil.
Total Current Assets was $30.09 Mil.
Total Assets was $36.74 Mil.
Property, Plant and Equipment(Net PPE) was $4.08 Mil.
Depreciation, Depletion and Amortization(DDA) was $4.41 Mil.
Selling, General & Admin. Expense(SGA) was $13.88 Mil.
Total Current Liabilities was $14.92 Mil.
Long-Term Debt was $0.00 Mil.
Net Income was -0.05 + 1.509 + -4.924 + -5.405 = $-8.87 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was -2.995 + 6.402 + -2.054 + -2.535 = $-1.18 Mil.
Accounts Receivable was $3.77 Mil.
Revenue was 13.571 + 16.285 + 15.524 + 14.33 = $59.71 Mil.
Gross Profit was 6.592 + 7.788 + 7.659 + 7.809 = $29.85 Mil.
Total Current Assets was $21.61 Mil.
Total Assets was $29.54 Mil.
Property, Plant and Equipment(Net PPE) was $6.28 Mil.
Depreciation, Depletion and Amortization(DDA) was $4.74 Mil.
Selling, General & Admin. Expense(SGA) was $14.94 Mil.
Total Current Liabilities was $11.10 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)
=(4.761 / 48.118) / (3.772 / 59.71)
=0.09894426 / 0.063172
=1.5663

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)
=(9.322 / 59.71) / (8.489 / 48.118)
=0.49988277 / 0.54885905
=0.9108

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 - (30.087 + 4.084) / 36.744) / (1 - (21.605 + 6.283) / 29.541)
=0.07002504 / 0.05595613
=1.2514

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
=48.118 / 59.71
=0.8059

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))
=(4.735 / (4.735 + 6.283)) / (4.409 / (4.409 + 4.084))
=0.42975132 / 0.5191334
=0.8278

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)
=(13.883 / 48.118) / (14.944 / 59.71)
=0.28851989 / 0.25027634
=1.1528

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 + 14.924) / 36.744) / ((0 + 11.097) / 29.541)
=0.40616155 / 0.37564741
=1.0812

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
=(-8.87 - 0 - -1.182) / 36.744
=-0.2092

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 -3.13 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 7.30271.13271.87571.13690.97170.6031.09550.56531.06041.0812
TATA -0.0181-0.1005-0.4503-0.1981-0.2023-0.1474-0.0303-0.2107-0.2531-0.2092
M-score -4.13-2.41-5.33-4.17-3.50-2.82-2.94-3.41-4.02-3.13

Pixelworks, Inc. Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DSRI 0.98881.09291.56991.10610.84780.89570.43150.66620.88661.5663
GMI 0.98860.98420.93290.92790.94630.94021.01461.03130.94340.9108
AQI 0.61230.74130.94960.62450.65250.69850.741.15441.59991.2514
SGI 0.82840.92920.98021.02421.01680.92420.83520.74420.74170.8059
DEPI 1.28961.19420.89180.84150.97270.95350.92980.90720.83210.8278
SGAI 1.19971.08321.03651.02081.02571.05921.12541.20751.19531.1528
LVGI 0.63740.56530.51481.24621.06311.06041.51041.39581.0381.0812
TATA -0.2033-0.2112-0.1267-0.1773-0.1751-0.2531-0.4776-0.4323-0.376-0.2092
M-score -3.64-3.41-2.48-3.48-3.62-4.02-5.68-5.13-4.43-3.13
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