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Affymax Inc (OTCPK:AFFY)
Beneish M-Score
-8.79 (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.

Affymax Inc has a M-score of -8.79 suggests that the company is not a manipulator.

AFFY' s 10-Year Beneish M-Score Range
Min: -13.78   Max: 282.68
Current: -8.79

-13.78
282.68

During the past 13 years, the highest Beneish M-Score of Affymax Inc was 282.68. The lowest was -13.78. And the median was -1.71.


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 Affymax 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+0.528 * 1+0.404 * 0.3818+0.892 * 0.0014+0.115 * 1
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 47.4912+4.679 * 0.5386-0.327 * 0.0623
=-8.79

* 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 $0.00 Mil.
Revenue was 0.042 + 0 + 0 + 0 = $0.04 Mil.
Gross Profit was 0.042 + 0 + 0 + 0 = $0.04 Mil.
Total Current Assets was $4.45 Mil.
Total Assets was $5.38 Mil.
Property, Plant and Equipment(Net PPE) was $0.00 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.15 Mil.
Selling, General & Admin. Expense(SGA) was $5.23 Mil.
Total Current Liabilities was $0.21 Mil.
Long-Term Debt was $0.00 Mil.
Net Income was 7.209 + -1.392 + -1.431 + -1.692 = $2.69 Mil.
Non Operating Income was 8.162 + 0 + -0.002 + 0 = $8.16 Mil.
Cash Flow from Operations was -1.457 + -0.741 + -1.257 + -4.911 = $-8.37 Mil.
Accounts Receivable was $0.00 Mil.
Revenue was 0.525 + 0.844 + 14.799 + 13.607 = $29.78 Mil.
Gross Profit was 0.525 + 0.844 + 14.799 + 13.607 = $29.78 Mil.
Total Current Assets was $11.45 Mil.
Total Assets was $20.91 Mil.
Property, Plant and Equipment(Net PPE) was $0.00 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.62 Mil.
Selling, General & Admin. Expense(SGA) was $78.13 Mil.
Total Current Liabilities was $13.35 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)
=(0 / 0.042) / (0 / 29.775)
=0 / 0
=1

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)
=(0 / 29.775) / (0.042 / 0.042)
=1 / 1
=1

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 - (4.454 + 0) / 5.384) / (1 - (11.452 + 0) / 20.913)
=0.17273403 / 0.45239803
=0.3818

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
=0.042 / 29.775
=0.0014

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))
=(1.616 / (1.616 + 0)) / (0.148 / (0.148 + 0))
=1 / 1
=1

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)
=(5.234 / 0.042) / (78.131 / 29.775)
=124.61904762 / 2.62404702
=47.4912

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 + 0.214) / 5.384) / ((0 + 13.348) / 20.913)
=0.0397474 / 0.63826328
=0.0623

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
=(2.694 - 8.16 - -8.366) / 5.384
=0.5386

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.

Affymax Inc has a M-score of -8.79 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.

Affymax Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 110.39790.850.5923011.33870
GMI 111111111
AQI 0.42081.55283.73231.71070.36022.93130.33141.53191.3991
SGI 0.4901158.45953.7811.86871.38680.97930.42411.97760.0145
DEPI 1.13411.53052.14470.76960.56250.78120.85021.05020.4
SGAI 4.15140.0070.57420.75770.77660.9272.32171.382321.1525
LVGI 1.20540.51935.09212.2561.13590.57320.47084.91191.4221
TATA -0.1289-0.46620.0107-0.13380.01940.26580.0889-0.47547.1083
M-score -4.37136.40-0.53-2.58-2.73-1.27-2.92-4.6525.47

Affymax Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 10.50051.08631.33870.04400001
GMI 1111111111
AQI 0.66080.6361.40371.53191.94795.54216.01431.39911.12090.3818
SGI 0.99671.52411.63951.97760.33960.35940.19420.01450.01640.0014
DEPI 0.90631.06221.0821.05020.54550.38410.39030.40.74831
SGAI 1.25841.09341.34341.38237.22944.07743.886221.39682.898247.4912
LVGI 0.87231.67782.03414.91195.83692.77242.26591.42211.2820.0623
TATA 0.2935-0.1668-0.2045-0.4754-1.60520.10710.69597.05838.40310.5386
M-score -1.26-3.63-3.01-4.65-13.78-2.820.1825.1934.64-8.79
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