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

Warning Sign:

Beneish M-Score 11.85 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 11.85 signals that the company is a manipulator.

CYTR' s 10-Year Beneish M-Score Range
Min: -85.55   Max: 132.54
Current: 11.85

-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 -0.47.


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 * 18.5261+0.528 * 1+0.404 * 0.2971+0.892 * 0.3333+0.115 * 1.0919
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 4.6193+4.679 * -0.0852-0.327 * 0.7157
=11.85

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was $1.66 Mil.
Revenue was 0 + 0 + 0.1 + 0 = $0.10 Mil.
Gross Profit was 0 + 0 + 0.1 + 0 = $0.10 Mil.
Total Current Assets was $105.04 Mil.
Total Assets was $105.58 Mil.
Property, Plant and Equipment(Net PPE) was $0.24 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.13 Mil.
Selling, General & Admin. Expense(SGA) was $12.53 Mil.
Total Current Liabilities was $22.50 Mil.
Long-Term Debt was $0.00 Mil.
Net Income was -15.719 + 4.665 + -27.218 + -9.98 = $-48.25 Mil.
Non Operating Income was -2.472 + 14.713 + -17.057 + -4.01 = $-8.83 Mil.
Cash Flow from Operations was -10.131 + -6.913 + -8.543 + -4.847 = $-30.43 Mil.
Accounts Receivable was $0.27 Mil.
Revenue was 0.2 + 0 + 0.1 + 0 = $0.30 Mil.
Gross Profit was 0.2 + 0 + 0.1 + 0 = $0.30 Mil.
Total Current Assets was $28.83 Mil.
Total Assets was $29.32 Mil.
Property, Plant and Equipment(Net PPE) was $0.20 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.12 Mil.
Selling, General & Admin. Expense(SGA) was $8.14 Mil.
Total Current Liabilities was $8.73 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)
=(1.655 / 0.1) / (0.268 / 0.3)
=16.55 / 0.89333333
=18.5261

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 - (105.037 + 0.239) / 105.582) / (1 - (28.829 + 0.2) / 29.315)
=0.00289822 / 0.0097561
=0.2971

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 + 0.2)) / (0.126 / (0.126 + 0.239))
=0.37694704 / 0.34520548
=1.0919

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)
=(12.526 / 0.1) / (8.135 / 0.3)
=125.26 / 27.11666667
=4.6193

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 + 22.5) / 105.582) / ((0 + 8.729) / 29.315)
=0.21310451 / 0.29776565
=0.7157

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
=(-48.252 - -8.826 - -30.434) / 105.582
=-0.0852

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 11.85 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

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 0.00920.50474.54171.56688.33332.07750.24460.30880.418.5261
GMI 1111111111
AQI 0.77990.77941.88020.87960.88080.91810.96861.01670.29640.2971
SGI 2.50.40.40.40.433330.3333
DEPI 0.95811.00270.90270.85370.79080.64450.70520.75990.77511.0919
SGAI 0.37092.34982.3812.89312.91320.37930.39180.40990.46794.6193
LVGI 2.18864.01952.32380.69640.5570.31690.6442.97010.46290.7157
TATA -0.1484-0.1721-0.1659-0.04670.0382-0.0304-0.0632-0.0893-0.0678-0.0852
M-score -3.12-5.58-0.86-3.003.650.41-1.51-2.31-1.6111.85
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