Switch to:
Pixelworks Inc (NAS:PXLW)
Beneish M-Score
-2.33 (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 -2.33 suggests that the company is not a manipulator.

PXLW' s 10-Year Beneish M-Score Range
Min: -5.68   Max: -1.84
Current: -2.33

-5.68
-1.84

During the past 13 years, the highest Beneish M-Score of Pixelworks Inc was -1.84. The lowest was -5.68. 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 * 1.9045+0.528 * 0.9756+0.404 * 0.5126+0.892 * 1.3018+0.115 * 1.2138
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8592+4.679 * -0.1609-0.327 * 1.1043
=-2.33

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $6.12 Mil.
Revenue was 17.111 + 15.166 + 13.541 + 14.984 = $60.80 Mil.
Gross Profit was 8.566 + 7.661 + 7.995 + 8.489 = $32.71 Mil.
Total Current Assets was $28.99 Mil.
Total Assets was $37.40 Mil.
Property, Plant and Equipment(Net PPE) was $6.74 Mil.
Depreciation, Depletion and Amortization(DDA) was $4.58 Mil.
Selling, General & Admin. Expense(SGA) was $15.37 Mil.
Total Current Liabilities was $16.66 Mil.
Long-Term Debt was $0.00 Mil.
Net Income was -2.3 + -2.382 + -2.507 + -0.05 = $-7.24 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was -0.568 + 1.172 + 1.17 + -2.995 = $-1.22 Mil.
Accounts Receivable was $2.47 Mil.
Revenue was 15.309 + 9.554 + 8.271 + 13.571 = $46.71 Mil.
Gross Profit was 9.322 + 4.622 + 3.977 + 6.592 = $24.51 Mil.
Total Current Assets was $27.49 Mil.
Total Assets was $35.15 Mil.
Property, Plant and Equipment(Net PPE) was $4.59 Mil.
Depreciation, Depletion and Amortization(DDA) was $4.44 Mil.
Selling, General & Admin. Expense(SGA) was $13.74 Mil.
Total Current Liabilities was $14.17 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)
=(6.124 / 60.802) / (2.47 / 46.705)
=0.10072037 / 0.05288513
=1.9045

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)
=(7.661 / 46.705) / (8.566 / 60.802)
=0.52484745 / 0.53799217
=0.9756

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 - (28.993 + 6.737) / 37.403) / (1 - (27.486 + 4.592) / 35.145)
=0.04472903 / 0.08726704
=0.5126

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
=60.802 / 46.705
=1.3018

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))
=(4.436 / (4.436 + 4.592)) / (4.582 / (4.582 + 6.737))
=0.49136021 / 0.40480608
=1.2138

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)
=(15.373 / 60.802) / (13.744 / 46.705)
=0.25283708 / 0.29427256
=0.8592

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 + 16.655) / 37.403) / ((0 + 14.171) / 35.145)
=0.44528514 / 0.40321525
=1.1043

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
=(-7.239 - 0 - -1.221) / 37.403
=-0.1609

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 -2.33 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 1.18771.030.80660.68871.1421.13151.17611.19420.95350.8278
SGAI 0.79371.11731.47140.91480.87791.06770.96961.08321.05921.1528
LVGI 7.24661.13271.87571.13690.83080.94550.81720.56531.06041.0812
TATA -0.0178-0.1005-0.4503-0.1981-0.2023-0.1474-0.0303-0.2107-0.2531-0.2092
M-score -4.10-2.42-5.33-4.17-3.46-2.93-2.85-3.41-4.02-3.13

Pixelworks Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 1.10610.84780.89570.43150.66620.88661.56631.8281.27551.9045
GMI 0.92790.94630.94021.01461.03130.94340.91080.85080.84960.9756
AQI 0.62450.65250.69850.741.15441.59991.25140.9670.73830.5126
SGI 1.02421.01680.92420.83520.74420.74170.80590.99511.23741.3018
DEPI 0.84150.97270.95350.92980.90720.83210.82781.10361.27491.2138
SGAI 1.02081.02571.05921.12541.20751.19531.15280.99180.85220.8592
LVGI 1.24621.06311.06041.51041.39581.0381.08120.80740.70711.1043
TATA -0.1773-0.1751-0.2531-0.4776-0.4323-0.376-0.2092-0.2226-0.2387-0.1609
M-score -3.48-3.62-4.02-5.68-5.13-4.43-3.13-2.78-3.16-2.33
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK