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Pixelworks Inc (NAS:PXLW)
Beneish M-Score
-4.18 (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 -4.18 suggests that the company is not a manipulator.

PXLW' s 10-Year Beneish M-Score Range
Min: -4.87   Max: -2.16
Current: -4.18

-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 -3.41.


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 * 0.7711+0.528 * 1.0521+0.404 * 0.578+0.892 * 1.2661+0.115 * 1.2554
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9358+4.679 * -0.3411-0.327 * 1.0737
=-4.18

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
Accounts Receivable was $4.65 Mil.
Revenue was 15.105 + 17.111 + 15.166 + 13.541 = $60.92 Mil.
Gross Profit was 7.559 + 8.566 + 7.661 + 7.995 = $31.78 Mil.
Total Current Assets was $26.36 Mil.
Total Assets was $34.14 Mil.
Property, Plant and Equipment(Net PPE) was $6.40 Mil.
Depreciation, Depletion and Amortization(DDA) was $4.51 Mil.
Selling, General & Admin. Expense(SGA) was $17.88 Mil.
Total Current Liabilities was $14.89 Mil.
Long-Term Debt was $0.00 Mil.
Net Income was -2.771 + -2.3 + -2.382 + -2.507 = $-9.96 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was -0.086 + -0.568 + 1.172 + 1.17 = $1.69 Mil.
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 $15.09 Mil.
Total Current Liabilities was $14.92 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)
=(4.648 / 60.923) / (4.761 / 48.118)
=0.07629303 / 0.09894426
=0.7711

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)
=(8.566 / 48.118) / (7.559 / 60.923)
=0.54885905 / 0.52165849
=1.0521

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 - (26.36 + 6.402) / 34.144) / (1 - (30.087 + 4.084) / 36.744)
=0.04047563 / 0.07002504
=0.578

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
=60.923 / 48.118
=1.2661

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))
=(4.409 / (4.409 + 4.084)) / (4.514 / (4.514 + 6.402))
=0.5191334 / 0.41352144
=1.2554

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)
=(17.875 / 60.923) / (15.087 / 48.118)
=0.29340315 / 0.31354171
=0.9358

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 + 14.89) / 34.144) / ((0 + 14.924) / 36.744)
=0.43609419 / 0.40616155
=1.0737

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
=(-9.96 - 0 - 1.688) / 34.144
=-0.3411

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 -4.18 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 1.40020.60070.84221.22961.27390.70171.09290.89571.56630.7711
GMI 1.33971.87680.44330.88941.10910.96580.98420.94020.91081.0521
AQI 1.17180.37890.82810.75431.40450.65190.74130.69851.25140.578
SGI 0.97440.77810.79320.80360.71741.13810.92920.92420.80591.2661
DEPI 1.06050.80660.68871.1421.13151.17611.19420.95350.82781.2554
SGAI 1.11731.47140.91480.87791.06770.96961.08321.05921.25280.9358
LVGI 1.13271.87571.13690.97170.6031.09550.56531.06041.08121.0737
TATA -0.1005-0.4503-0.1981-0.2023-0.1474-0.0303-0.2107-0.2531-0.2092-0.3411
M-score -2.41-5.33-4.17-3.50-2.82-2.94-3.41-4.02-3.15-4.18

Pixelworks Inc Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 0.84780.89570.43150.66620.88661.56631.8281.27551.90450.7711
GMI 0.94630.94021.01461.03130.94340.91080.85080.84960.97561.0521
AQI 0.65250.69850.741.15441.59991.25140.9670.73830.51260.578
SGI 1.01680.92420.83520.74420.74170.80590.99511.23741.30181.2661
DEPI 0.97270.95350.92980.90720.83210.82781.10361.27491.21381.2554
SGAI 1.02571.05921.12541.20751.19531.25281.07520.92170.92650.9358
LVGI 1.06311.06041.51041.39581.0381.08120.80740.70711.10431.0737
TATA -0.1751-0.2531-0.4776-0.4323-0.376-0.2092-0.2226-0.2387-0.1609-0.3411
M-score -3.62-4.02-5.68-5.13-4.43-3.15-2.79-3.18-2.34-4.18
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