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GuruFocus has detected 1 Warning Sign with Cascadian Therapeutics Inc $CASC.
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Cascadian Therapeutics Inc (NAS:CASC)
Beneish M-Score
-3.80 (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.

Cascadian Therapeutics Inc has a M-score of signals that the company is a manipulator.

CASC' s Beneish M-Score Range Over the Past 10 Years
Min: -10000000   Max: 311.48
Current: -3.8

-10000000
311.48

During the past 13 years, the highest Beneish M-Score of Cascadian Therapeutics Inc was 311.48. The lowest was -10000000.00. And the median was -2.57.


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 Cascadian Therapeutics 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 * +0.528 * +0.404 * +0.892 * +0.115 *
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * +4.679 * -0.327 *
=

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Dec16) TTM:Last Year (Dec15) TTM:
Accounts Receivable was $0.24 Mil.
Revenue was 0 + 0 + 0 + 0 = $0.00 Mil.
Gross Profit was 0 + 0 + 0 + 0 = $0.00 Mil.
Total Current Assets was $64.45 Mil.
Total Assets was $83.27 Mil.
Property, Plant and Equipment(Net PPE) was $1.40 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.64 Mil.
Selling, General & Admin. Expense(SGA) was $17.63 Mil.
Total Current Liabilities was $8.77 Mil.
Long-Term Debt was $0.00 Mil.
Net Income was -10.512 + -10.773 + -23.533 + -12.887 = $-57.71 Mil.
Non Operating Income was 0.078 + 0.019 + 0.042 + 0.083 = $0.22 Mil.
Cash Flow from Operations was -8.695 + -9.35 + -8.934 + -9.772 = $-36.75 Mil.
Accounts Receivable was $ Mil.
Revenue was 0 + 0 + 0 + 0 = $ Mil.
Gross Profit was + + + = $ Mil.
Total Current Assets was $ Mil.
Total Assets was $ Mil.
Property, Plant and Equipment(Net PPE) was $ Mil.
Depreciation, Depletion and Amortization(DDA) was $ Mil.
Selling, General & Admin. Expense(SGA) was $ Mil.
Total Current Liabilities was $ Mil.
Long-Term Debt was $ 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)
=(0.238 / 0) / ( / 0)
= /
=

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) / (0 / 0)
= /
=

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 - (64.454 + 1.402) / 83.265) / (1 - ( + 1.845) / )
=0.20907945 /
=

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 / 0
=

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))
=(0.613 / (0.613 + 1.845)) / (0.642 / (0.642 + 1.402))
= / 0.31409002
=

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)
=(17.63 / 0) / ( / 0)
= /
=

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 + 8.773) / 83.265) / (( + ) / )
=0.1053624 /
=

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
=(-57.705 - 0.222 - -36.751) / 83.265
=-0.2543

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.

Cascadian Therapeutics Inc has a M-score of signals that the company is likely to 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 local exchange's currency.

Cascadian Therapeutics Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
DSRI 2.20310.08580.4317368.85910.304211111
GMI 0.894-3.51150.65811111111
AQI 0.91291.84020.63751.01911.0180.80652.73165.81785.34962.9392
SGI 0.95510.53130.0520.00878.055600000
DEPI 2.56790.46272.8540.60090.87731.00730.97190.88750.87260.6929
SGAI 1.57520.074913.0092136.64460.110311111
LVGI 2.81310.49330.36591.00531.85330.30980.54080.38570.4480.9506
TATA -0.39650.481-0.2121-0.0458-0.0582-0.0258-0.0628-0.0239-0.0406-0.2543
M-score -3.875.65-6.81311.482.77-3.34-2.82-1.35-1.64-3.80

Cascadian Therapeutics Inc Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
DSRI 1111111111
GMI 1111111111
AQI 5.08145.81784.8464.73585.02725.34965.99412.42772.6652.9392
SGI 0000000000
DEPI 0.94520.88751.00010.91380.90350.87260.82330.75440.66610.6929
SGAI 1111111111
LVGI 0.32450.38570.27930.48610.30870.4480.56550.56020.72380.9506
TATA -0.0309-0.0239-0.0275-0.0191-0.0245-0.0406-0.0829-0.2072-0.2301-0.2543
M-score -1.65-1.35-1.71-1.79-1.64-1.64-1.62-3.65-3.72-3.80
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