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Chemocentryx Inc (NAS:CCXI)
Beneish M-Score
-6.59 (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.

Chemocentryx Inc has a M-score of -6.59 suggests that the company is not a manipulator.

CCXI' s 10-Year Beneish M-Score Range
Min: -6.59   Max: 6.13
Current: -6.59

-6.59
6.13

During the past 5 years, the highest Beneish M-Score of Chemocentryx Inc was 6.13. The lowest was -6.59. And the median was -3.68.


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 Chemocentryx 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+0.528 * 1+0.404 * 1.5171+0.892 * 0.0969+0.115 * 0.8745
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 12.0363+4.679 * -0.106-0.327 * 1.5656
=-6.59

* 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 $0.00 Mil.
Revenue was 0 + 0 + 0 + 0.725 = $0.73 Mil.
Gross Profit was 0 + 0 + 0 + 0.725 = $0.73 Mil.
Total Current Assets was $86.07 Mil.
Total Assets was $126.82 Mil.
Property, Plant and Equipment(Net PPE) was $1.19 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.56 Mil.
Selling, General & Admin. Expense(SGA) was $13.39 Mil.
Total Current Liabilities was $8.13 Mil.
Long-Term Debt was $0.00 Mil.
Net Income was -10.941 + -12.261 + -11.537 + -9.543 = $-44.28 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was -7.947 + -7.972 + -8.461 + -6.453 = $-30.83 Mil.
Accounts Receivable was $0.52 Mil.
Revenue was 1.522 + 1.886 + 1.927 + 2.145 = $7.48 Mil.
Gross Profit was 1.522 + 1.886 + 1.927 + 2.145 = $7.48 Mil.
Total Current Assets was $125.62 Mil.
Total Assets was $159.95 Mil.
Property, Plant and Equipment(Net PPE) was $1.44 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.56 Mil.
Selling, General & Admin. Expense(SGA) was $11.48 Mil.
Total Current Liabilities was $6.49 Mil.
Long-Term Debt was $0.06 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 / 0.725) / (0.523 / 7.48)
=0 / 0.06991979
=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 / 7.48) / (0 / 0.725)
=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 - (86.066 + 1.193) / 126.823) / (1 - (125.622 + 1.44) / 159.953)
=0.31196234 / 0.20562915
=1.5171

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
=0.725 / 7.48
=0.0969

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))
=(0.562 / (0.562 + 1.44)) / (0.564 / (0.564 + 1.193))
=0.28071928 / 0.32100171
=0.8745

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)
=(13.394 / 0.725) / (11.481 / 7.48)
=18.47448276 / 1.53489305
=12.0363

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 + 8.127) / 126.823) / ((0.062 + 6.485) / 159.953)
=0.06408144 / 0.04093077
=1.5656

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
=(-44.282 - 0 - -30.833) / 126.823
=-0.106

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.

Chemocentryx Inc has a M-score of -6.59 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.

Chemocentryx Inc Annual Data

Dec09Dec10Dec11Dec12Dec13
DSRI 0.304
GMI 1
AQI 0.8171
SGI 1.1183
DEPI 1.0084
SGAI 0.9927
LVGI 0.4733
TATA -0.0351
M-score -3.08

Chemocentryx Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 10.00757.04630.3040.006600
GMI 111111
AQI 5.33229.15930.81710.21831.14061.5171
SGI 0.23910.25511.11830.65310.31710.0969
DEPI 1.09211.24171.00840.96660.99490.8745
SGAI 5.39274.71430.99271.71553.588712.0363
LVGI 0.60340.44010.47330.57711.11921.5656
TATA -0.0292-0.0286-0.0351-0.0589-0.0834-0.106
M-score 6.135.15-3.08-4.28-4.83-6.59
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