Switch to:
CytRx Corp (NAS:CYTR)
Beneish M-Score
118.24 (As of Today)

Warning Sign:

Beneish M-Score 118.24 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 118.24 signals that the company is a manipulator.

CYTR' s 10-Year Beneish M-Score Range
Min: -85.55   Max: 132.54
Current: 118.24

-85.55
132.54

During the past 13 years, the highest Beneish M-Score of CytRx Corp was 132.54. The lowest was -85.55. And the median was -0.68.


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 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 * 133.875+0.528 * 1+0.404 * 0.2677+0.892 * 0.3333+0.115 * 2.8725
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 4.6292+4.679 * -0.0942-0.327 * 0.3531
=118.24

* 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 $3.57 Mil.
Revenue was 0 + 0 + 0 + 0.1 = $0.10 Mil.
Gross Profit was 0 + 0 + 0 + 0.1 = $0.10 Mil.
Total Current Assets was $95.68 Mil.
Total Assets was $96.81 Mil.
Property, Plant and Equipment(Net PPE) was $0.82 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.13 Mil.
Selling, General & Admin. Expense(SGA) was $12.95 Mil.
Total Current Liabilities was $18.62 Mil.
Long-Term Debt was $0.00 Mil.
Net Income was -5.625 + -15.719 + 4.665 + -27.218 = $-43.90 Mil.
Non Operating Income was 7.347 + -2.472 + 14.713 + -17.057 = $2.53 Mil.
Cash Flow from Operations was -11.722 + -10.131 + -6.913 + -8.543 = $-37.31 Mil.
Accounts Receivable was $0.08 Mil.
Revenue was 0 + 0.2 + 0 + 0.1 = $0.30 Mil.
Gross Profit was 0 + 0.2 + 0 + 0.1 = $0.30 Mil.
Total Current Assets was $23.99 Mil.
Total Assets was $24.47 Mil.
Property, Plant and Equipment(Net PPE) was $0.19 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.12 Mil.
Selling, General & Admin. Expense(SGA) was $8.39 Mil.
Total Current Liabilities was $13.33 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)
=(3.57 / 0.1) / (0.08 / 0.3)
=35.7 / 0.26666667
=133.875

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 / 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 - (95.68 + 0.824) / 96.808) / (1 - (23.992 + 0.188) / 24.467)
=0.00314024 / 0.01173009
=0.2677

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))
=(0.117 / (0.117 + 0.188)) / (0.127 / (0.127 + 0.824))
=0.38360656 / 0.13354364
=2.8725

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)
=(12.951 / 0.1) / (8.393 / 0.3)
=129.51 / 27.97666667
=4.6292

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 + 18.615) / 96.808) / ((0 + 13.325) / 24.467)
=0.19228783 / 0.54461111
=0.3531

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
=(-43.897 - 2.531 - -37.309) / 96.808
=-0.0942

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 118.24 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 110.05460.26394.04261.5191107.74680.09691.56680.3088
GMI 1111111111
AQI 2.23751.09040.48940.81281.0670.7920.7660.73670.87961.0167
SGI 4.55320.429911.22833.61040.84011.51610.01052.50.43
DEPI 0.08390.45240.48553.21530.60480.33362.88920.95370.85370.7636
SGAI 0.24831.89130.13390.42510.87810.550785.71650.35542.8540.41
LVGI 5.96050.45621.33180.66540.81311.10320.85032.15110.69642.9701
TATA -0.8-0.0763-0.8253-0.0161-0.14220.1513-0.0519-0.1552-0.0467-0.0893
M-score -4.15-3.351.69-0.52-0.43-0.9580.20-3.08-3.00-2.31

CytRx Corp Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.50474.54171.56688.33332.07750.24460.30880.418.5261133.875
GMI 1111111111
AQI 0.77941.88020.87960.88080.91810.96861.01670.29640.29710.2677
SGI 0.40.40.40.433330.33330.3333
DEPI 1.00270.90270.85370.79080.64450.70520.75990.77511.09192.8725
SGAI 2.34982.3812.89312.91320.37930.39180.40990.46794.61934.6292
LVGI 4.01952.32380.69640.5570.31690.6442.97010.46290.71570.3531
TATA -0.1721-0.1659-0.04670.0382-0.0304-0.0632-0.0893-0.0678-0.0852-0.0942
M-score -5.58-0.86-3.003.650.41-1.51-2.31-1.6111.85118.24
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK