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Cascadian Therapeutics Inc (NAS:CASC)
Beneish M-Score
-1.62 (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: 10000000
Current: -1.62

-10000000
10000000

During the past 13 years, the highest Beneish M-Score of Cascadian Therapeutics Inc was 10000000.00. The lowest was -10000000.00. And the median was -2.38.


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 own currency.

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $0.27 Mil.
Revenue was 0 + 0 + 0 + 0 = $0.00 Mil.
Gross Profit was 0 + 0 + 0 + 0 = $0.00 Mil.
Total Current Assets was $48.23 Mil.
Total Assets was $87.13 Mil.
Property, Plant and Equipment(Net PPE) was $1.75 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.63 Mil.
Selling, General & Admin. Expense(SGA) was $13.63 Mil.
Total Current Liabilities was $5.46 Mil.
Long-Term Debt was $0.00 Mil.
Net Income was -12.887 + -9.131 + -4.619 + -10.896 = $-37.53 Mil.
Non Operating Income was 0.083 + 0.02 + 2.603 + -2.559 = $0.15 Mil.
Cash Flow from Operations was -9.772 + -7.3 + -6.02 + -7.362 = $-30.45 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)
=(0.273 / 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 - (48.233 + 1.745) / 87.13) / (1 - ( + 1.938) / )
=0.42639734 /
=

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))
=(0.539 / (0.539 + 1.938)) / (0.627 / (0.627 + 1.745))
= / 0.2643339
=

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)
=(13.633 / 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 + 5.461) / 87.13) / (( + ) / )
=0.06267646 /
=

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
=(-37.533 - 0.147 - -30.454) / 87.13
=-0.0829

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 own currency.

Cascadian Therapeutics Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.85032.13930.0860.4317368.85910.30421111
GMI 1-0.4327-3.51130.6581111111
AQI 2.43210.91291.84020.63751.01911.0180.80652.73165.81785.3496
SGI 1.02760.983510.50090.0520.00878.05560000
DEPI 0.55264.37460.46432.8540.60090.87731.00730.97190.88750.8726
SGAI 1.24571.57540.074913.0092136.64460.11031111
LVGI 0.90732.81310.47080.38341.00531.85330.30980.54080.38570.448
TATA -0.0833-0.39760.481-0.2121-0.0458-0.0605-0.0164-0.0628-0.0239-0.0406
M-score -2.47-4.405.63-6.82311.482.76-3.30-2.82-1.35-1.64

Cascadian Therapeutics Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 1111111111
GMI 1111111111
AQI 2.73161.70671.76965.08145.81784.8464.73585.02725.34965.9941
SGI 0000000000
DEPI 0.97190.94761.00580.94520.88751.00010.91380.90350.87260.8233
SGAI 1111111111
LVGI 0.54080.42530.55730.32450.38570.27930.48610.30870.4480.5655
TATA -0.0628-0.0398-0.0579-0.0309-0.0239-0.0275-0.0191-0.0245-0.0406-0.0829
M-score -2.82-3.09-3.19-1.65-1.35-1.71-1.79-1.64-1.64-1.62
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