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Pixelworks Inc (NAS:PXLW)
Beneish M-Score
-2.78 (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 -2.78 suggests that the company is not a manipulator.

PXLW' s 10-Year Beneish M-Score Range
Min: -5.68   Max: -1.88
Current: -2.78

-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 -3.41.


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 * 1.828+0.528 * 0.8508+0.404 * 0.967+0.892 * 0.9951+0.115 * 1.1036
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9918+4.679 * -0.2226-0.327 * 0.8074
=-2.78

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

This Year (Mar14) TTM:Last Year (Mar13) TTM:
Accounts Receivable was $4.36 Mil.
Revenue was 13.541 + 14.984 + 15.309 + 9.554 = $53.39 Mil.
Gross Profit was 7.995 + 8.489 + 9.322 + 4.622 = $30.43 Mil.
Total Current Assets was $29.88 Mil.
Total Assets was $38.17 Mil.
Property, Plant and Equipment(Net PPE) was $6.17 Mil.
Depreciation, Depletion and Amortization(DDA) was $4.50 Mil.
Selling, General & Admin. Expense(SGA) was $14.33 Mil.
Total Current Liabilities was $15.40 Mil.
Long-Term Debt was $0.00 Mil.
Net Income was -2.507 + -0.05 + 1.509 + -4.924 = $-5.97 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was 1.17 + -2.995 + 6.402 + -2.054 = $2.52 Mil.
Accounts Receivable was $2.40 Mil.
Revenue was 8.271 + 13.571 + 16.285 + 15.524 = $53.65 Mil.
Gross Profit was 3.977 + 6.592 + 7.788 + 7.659 = $26.02 Mil.
Total Current Assets was $19.18 Mil.
Total Assets was $25.99 Mil.
Property, Plant and Equipment(Net PPE) was $5.32 Mil.
Depreciation, Depletion and Amortization(DDA) was $4.62 Mil.
Selling, General & Admin. Expense(SGA) was $14.52 Mil.
Total Current Liabilities was $12.98 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)
=(4.362 / 53.388) / (2.398 / 53.651)
=0.08170375 / 0.04469628
=1.828

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)
=(8.489 / 53.651) / (7.995 / 53.388)
=0.48491174 / 0.56994081
=0.8508

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 - (29.876 + 6.172) / 38.17) / (1 - (19.177 + 5.316) / 25.987)
=0.0555934 / 0.05749028
=0.967

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
=53.388 / 53.651
=0.9951

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))
=(4.621 / (4.621 + 5.316)) / (4.495 / (4.495 + 6.172))
=0.46502969 / 0.42139308
=1.1036

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)
=(14.334 / 53.388) / (14.523 / 53.651)
=0.2684873 / 0.27069393
=0.9918

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 + 15.396) / 38.17) / ((0 + 12.982) / 25.987)
=0.40335342 / 0.49955747
=0.8074

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
=(-5.972 - 0 - 2.523) / 38.17
=-0.2226

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 -2.78 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

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
DSRI 1.09291.56991.10610.84780.89570.43150.66620.88661.56631.828
GMI 0.98420.93290.92790.94630.94021.01461.03130.94340.91080.8508
AQI 0.74130.94960.62450.65250.69850.741.15441.59991.25140.967
SGI 0.92920.98021.02421.01680.92420.83520.74420.74170.80590.9951
DEPI 1.19420.89180.84150.97270.95350.92980.90720.83210.82781.1036
SGAI 1.08321.03651.02081.02571.05921.12541.20751.19531.15280.9918
LVGI 0.56530.51481.24621.06311.06041.51041.39581.0381.08120.8074
TATA -0.2112-0.1267-0.1773-0.1751-0.2531-0.4776-0.4323-0.376-0.2092-0.2226
M-score -3.41-2.48-3.48-3.62-4.02-5.68-5.13-4.43-3.13-2.78
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