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CytRx Corp (NAS:CYTR)
Beneish M-Score
42.57 (As of Today)

Warning Sign:

Beneish M-Score 42.57 higher than -2.22, which implies that it might have manipulated its financial results.

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.

CytRx Corp has a M-score of 42.57 signals that the company is a manipulator.

CYTR' s 10-Year Beneish M-Score Range
Min: -18.51   Max: 80.21
Current: 42.57

-18.51
80.21

During the past 13 years, the highest Beneish M-Score of CytRx Corp was 80.21. The lowest was -18.51. And the median was -0.52.


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 CytRx Corp 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 * 50.5714+0.528 * 1+0.404 * 2.4247+0.892 * 0.3333+0.115 * 2.5778
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 3.7507+4.679 * -0.102-0.327 * 0.2792
=42.57

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
Accounts Receivable was $2.12 Mil.
Revenue was 0.1 + 0 + 0 + 0 = $0.10 Mil.
Gross Profit was 0.1 + 0 + 0 + 0 = $0.10 Mil.
Total Current Assets was $83.22 Mil.
Total Assets was $85.69 Mil.
Property, Plant and Equipment(Net PPE) was $0.97 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.18 Mil.
Selling, General & Admin. Expense(SGA) was $12.85 Mil.
Total Current Liabilities was $17.78 Mil.
Long-Term Debt was $0.00 Mil.
Net Income was -13.438 + -5.625 + -15.719 + 4.665 = $-30.12 Mil.
Non Operating Income was -0.406 + 7.347 + -2.472 + 14.713 = $19.18 Mil.
Cash Flow from Operations was -11.791 + -11.722 + -10.131 + -6.913 = $-40.56 Mil.
Accounts Receivable was $0.13 Mil.
Revenue was 0.1 + 0 + 0.2 + 0 = $0.30 Mil.
Gross Profit was 0.1 + 0 + 0.2 + 0 = $0.30 Mil.
Total Current Assets was $41.02 Mil.
Total Assets was $41.50 Mil.
Property, Plant and Equipment(Net PPE) was $0.18 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.12 Mil.
Selling, General & Admin. Expense(SGA) was $10.27 Mil.
Total Current Liabilities was $30.84 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)
=(2.124 / 0.1) / (0.126 / 0.3)
=21.24 / 0.42
=50.5714

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 / 0.3) / (0.1 / 0.1)
=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 - (83.215 + 0.971) / 85.693) / (1 - (41.024 + 0.175) / 41.5)
=0.01758603 / 0.00725301
=2.4247

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
=0.1 / 0.3
=0.3333

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))
=(0.121 / (0.121 + 0.175)) / (0.183 / (0.183 + 0.971))
=0.40878378 / 0.15857886
=2.5778

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)
=(12.845 / 0.1) / (10.274 / 0.3)
=128.45 / 34.24666667
=3.7507

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 + 17.781) / 85.693) / ((0 + 30.839) / 41.5)
=0.20749653 / 0.74310843
=0.2792

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
=(-30.117 - 19.182 - -40.557) / 85.693
=-0.102

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.

CytRx Corp has a M-score of 42.57 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.

CytRx Corp Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 10.05460.26394.04261.5191107.74680.09691.56680.308850.5714
GMI 1111111111
AQI 1.09040.48940.81281.0670.7920.7660.73670.87961.01672.4247
SGI 0.429911.22833.61040.84011.51610.01052.50.430.3333
DEPI 0.45240.48553.21530.60480.33362.88920.95370.85370.76362.5652
SGAI 1.89130.13390.42510.87810.550785.71650.35542.8540.413.7507
LVGI 0.45621.33180.66540.81311.10320.85032.15110.69642.97010.2792
TATA -0.0763-0.8253-0.0161-0.14220.1513-0.0519-0.1552-0.0467-0.0893-0.1021
M-score -3.351.69-0.52-0.43-0.9580.20-3.08-3.00-2.3142.57

CytRx Corp Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 4.54171.56688.33332.07750.24460.30880.418.5261133.87550.5714
GMI 1111111111
AQI 1.88020.87960.88080.91810.96861.01670.29640.29710.26772.4247
SGI 0.40.40.433330.33330.33330.3333
DEPI 0.90270.85370.79080.64450.70520.75990.77511.09192.87252.5778
SGAI 2.3812.89312.91320.37930.39180.40990.46794.61934.62923.7507
LVGI 2.32380.69640.5570.31690.6442.97010.46290.71570.35310.2792
TATA -0.1659-0.04670.0382-0.0304-0.0632-0.0893-0.0678-0.0852-0.0942-0.102
M-score -0.86-3.003.650.41-1.51-2.31-1.6111.85118.2442.57
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