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Chemocentryx Inc (NAS:CCXI)
Beneish M-Score
-3.08 (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 -3.08 suggests that the company is not a manipulator.

CCXI' s 10-Year Beneish M-Score Range
Min: -3.08   Max: -3.08
Current: -3.08

During the past 5 years, the highest Beneish M-Score of Chemocentryx Inc was -3.08. The lowest was -3.08. And the median was -3.08.


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 * 0.304+0.528 * 1+0.404 * 0.8171+0.892 * 1.1183+0.115 * 1.0084
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9927+4.679 * -0.0351-0.327 * 0.4733
=-3.08

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

This Year (Dec13) TTM:Last Year (Dec12) TTM:
Accounts Receivable was $0.39 Mil.
Revenue was 0.725 + 1.522 + 1.886 + 1.927 = $6.06 Mil.
Gross Profit was 0.725 + 1.522 + 1.886 + 1.927 = $6.06 Mil.
Total Current Assets was $134.30 Mil.
Total Assets was $152.42 Mil.
Property, Plant and Equipment(Net PPE) was $1.40 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.58 Mil.
Selling, General & Admin. Expense(SGA) was $11.63 Mil.
Total Current Liabilities was $6.87 Mil.
Long-Term Debt was $0.02 Mil.
Net Income was -9.543 + -9.433 + -9.504 + -10.193 = $-38.67 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was -6.453 + -8.585 + -8.014 + -10.266 = $-33.32 Mil.
Accounts Receivable was $1.16 Mil.
Revenue was 2.145 + 1.128 + 1.128 + 1.018 = $5.42 Mil.
Gross Profit was 2.145 + 1.128 + 1.128 + 1.018 = $5.42 Mil.
Total Current Assets was $104.48 Mil.
Total Assets was $122.32 Mil.
Property, Plant and Equipment(Net PPE) was $1.42 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.59 Mil.
Selling, General & Admin. Expense(SGA) was $10.48 Mil.
Total Current Liabilities was $11.30 Mil.
Long-Term Debt was $0.38 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)
=(0.393 / 6.06) / (1.156 / 5.419)
=0.06485149 / 0.21332349
=0.304

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)
=(1.522 / 5.419) / (0.725 / 6.06)
=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 - (134.302 + 1.399) / 152.422) / (1 - (104.48 + 1.421) / 122.323)
=0.10970201 / 0.13425112
=0.8171

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
=6.06 / 5.419
=1.1183

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))
=(0.592 / (0.592 + 1.421)) / (0.576 / (0.576 + 1.399))
=0.29408843 / 0.29164557
=1.0084

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)
=(11.634 / 6.06) / (10.48 / 5.419)
=1.91980198 / 1.93393615
=0.9927

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)
=((0.016 + 6.872) / 152.422) / ((0.379 + 11.3) / 122.323)
=0.04519033 / 0.09547673
=0.4733

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
=(-38.673 - 0 - -33.318) / 152.422
=-0.0351

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 -3.08 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

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DSRI 10.00757.04630.304
GMI 111
AQI 5.33229.15930.8171
SGI 0.23910.25511.1183
DEPI 1.09211.24171.0084
SGAI 5.39274.71430.9927
LVGI 0.60340.44010.4733
TATA -0.0253-0.0205-0.0351
M-score 6.145.19-3.08
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