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CytRx Corporation (NAS:CYTR)
Beneish M-Score
-2.31 (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 Corporation has a M-score of -2.31 suggests that the company is not a manipulator.

CYTR' s 10-Year Beneish M-Score Range
Min: -18.51   Max: 80.21
Current: -2.31

-18.51
80.21

During the past 13 years, the highest Beneish M-Score of CytRx Corporation was 80.21. The lowest was -18.51. And the median was -0.74.


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 Corporation 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 * 0.3088+0.528 * 1+0.404 * 1.0167+0.892 * 3+0.115 * 0.7599
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.4099+4.679 * -0.0893-0.327 * 2.9701
=-2.31

* 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 $0.13 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.
Net Income was -27.218 + -9.98 + -3.423 + -6.864 = $-47.49 Mil.
Non Operating Income was -17.057 + -4.01 + 2.938 + -1.898 = $-20.03 Mil.
Cash Flow from Operations was -8.543 + -4.847 + -4.449 + -5.912 = $-23.75 Mil.
Accounts Receivable was $0.14 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 $39.69 Mil.
Total Assets was $40.23 Mil.
Property, Plant and Equipment(Net PPE) was $0.25 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.11 Mil.
Selling, General & Admin. Expense(SGA) was $8.35 Mil.
Total Current Liabilities was $10.07 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)
=(0.126 / 0.3) / (0.136 / 0.1)
=0.42 / 1.36
=0.3088

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 / 0.1) / (0.1 / 0.3)
=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 - (41.024 + 0.175) / 41.5) / (1 - (39.692 + 0.253) / 40.232)
=0.00725301 / 0.00713362
=1.0167

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
=0.3 / 0.1
=3

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))
=(0.114 / (0.114 + 0.253)) / (0.121 / (0.121 + 0.175))
=0.3106267 / 0.40878378
=0.7599

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)
=(10.274 / 0.3) / (8.354 / 0.1)
=34.24666667 / 83.54
=0.4099

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 + 30.839) / 41.5) / ((0 + 10.066) / 40.232)
=0.74310843 / 0.25019885
=2.9701

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
=(-47.485 - -20.027 - -23.751) / 41.5
=-0.0893

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 Corporation has a M-score of -2.31 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.

CytRx Corporation 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 Corporation Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DSRI 0.03590.09690.00920.50474.54171.56688.33332.07750.24460.3088
GMI 1111111111
AQI 0.53820.73670.77990.77941.88020.87960.88080.91810.96861.0167
SGI 2.52.52.50.40.40.40.4333
DEPI 0.98490.95370.95811.00270.90270.85370.79080.64450.70520.7599
SGAI 0.3450.35060.37092.34982.3812.89312.91320.37930.39180.4099
LVGI 2.20182.15112.18864.01952.32380.69640.5570.31690.6442.9701
TATA -0.0578-0.1551-0.1484-0.1721-0.1659-0.04670.0382-0.0304-0.0632-0.0893
M-score -2.77-3.07-3.12-5.58-0.86-3.003.650.41-1.51-2.31
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