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GuruFocus has detected 3 Warning Signs with CytRx Corp $CYTR.
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CytRx Corp (NAS:CYTR)
Beneish M-Score
-3.35 (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.

CytRx Corp has a M-score of -3.35 suggests that the company is not a manipulator.

CYTR' s Beneish M-Score Range Over the Past 10 Years
Min: -6.8   Max: 80.21
Current: -3.35

-6.8
80.21

During the past 13 years, the highest Beneish M-Score of CytRx Corp was 80.21. The lowest was -6.80. And the median was -2.26.


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 * 0.0199+0.528 * 1+0.404 * 0.1968+0.892 * 2+0.115 * 0.8258
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.4066+4.679 * -0.0781-0.327 * 1.768
=-3.35

* 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 $0.18 Mil.
Revenue was 0.1 + 0 + 0.1 + 0 = $0.20 Mil.
Gross Profit was 0.1 + 0 + 0.1 + 0 = $0.20 Mil.
Total Current Assets was $60.58 Mil.
Total Assets was $62.77 Mil.
Property, Plant and Equipment(Net PPE) was $1.96 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.54 Mil.
Selling, General & Admin. Expense(SGA) was $15.99 Mil.
Total Current Liabilities was $19.51 Mil.
Long-Term Debt was $18.49 Mil.
Net Income was -7.672 + -12.175 + -18.28 + -12.643 = $-50.77 Mil.
Non Operating Income was 3.051 + 0.236 + 0.877 + -0.178 = $3.99 Mil.
Cash Flow from Operations was -9.364 + -15.047 + -12.349 + -13.091 = $-49.85 Mil.
Accounts Receivable was $4.62 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 $64.29 Mil.
Total Assets was $67.02 Mil.
Property, Plant and Equipment(Net PPE) was $1.47 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.32 Mil.
Selling, General & Admin. Expense(SGA) was $19.67 Mil.
Total Current Liabilities was $22.95 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)
=(0.184 / 0.2) / (4.622 / 0.1)
=0.92 / 46.22
=0.0199

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)
=(0.1 / 0.1) / (0.2 / 0.2)
=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 - (60.577 + 1.96) / 62.77) / (1 - (64.292 + 1.468) / 67.024)
=0.00371196 / 0.01885892
=0.1968

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
=0.2 / 0.1
=2

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))
=(0.317 / (0.317 + 1.468)) / (0.537 / (0.537 + 1.96))
=0.17759104 / 0.21505807
=0.8258

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)
=(15.991 / 0.2) / (19.665 / 0.1)
=79.955 / 196.65
=0.4066

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)
=((18.485 + 19.508) / 62.77) / ((0 + 22.945) / 67.024)
=0.60527322 / 0.34234006
=1.768

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
=(-50.77 - 3.986 - -49.851) / 62.77
=-0.0781

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 -3.35 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 local exchange's currency.

CytRx Corp Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
DSRI 0.26394.04261.5191107.74680.09691.56680.308850.57142.1761
GMI 111111111
AQI 0.81281.0670.7920.7660.73670.87961.01672.42471.0724
SGI 3.61040.84011.51610.01052.50.430.33331
DEPI 3.21530.60480.33362.88920.95370.85370.76362.56520.8906
SGAI 0.42510.87810.550785.71650.35542.8540.413.75071.5309
LVGI 0.66540.81311.10320.85032.15110.69642.97010.27921.6499
TATA -0.0231-0.14220.1513-0.0519-0.1552-0.0467-0.0893-0.1021-0.2307
M-score -0.55-0.43-0.9580.20-3.08-3.00-2.3142.57-2.76

CytRx Corp Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
DSRI 133.87550.5714261.453.13530.46922.17610.19140.02170.03220.0199
GMI 1111111111
AQI 0.26772.42478.29739.66257.25721.07240.56940.51430.16410.1968
SGI 0.33330.33330.33331111222
DEPI 2.87252.57782.20081.41740.56560.89291.21581.56771.33970.8258
SGAI 4.62143.76423.33191.12921.07781.52551.5930.79320.82590.4066
LVGI 0.35310.27922.03831.51870.89641.64991.85911.89363.65941.768
TATA -0.0942-0.102-0.1168-0.1333-0.0982-0.2307-0.1569-0.2617-0.1989-0.0781
M-score 118.2442.57238.342.22-0.93-2.76-4.49-4.10-4.55-3.35
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