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

Warning Sign:

Beneish M-Score 2.22 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 2.22 signals that the company is a manipulator.

CYTR' s 10-Year Beneish M-Score Range
Min: -85.55   Max: 238.34
Current: 2.22

-85.55
238.34

During the past 13 years, the highest Beneish M-Score of CytRx Corp was 238.34. The lowest was -85.55. And the median was -0.41.


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 * 3.1353+0.528 * 1+0.404 * 9.6625+0.892 * 1+0.115 * 1.4174
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1278+4.679 * -0.1333-0.327 * 1.5187
=2.22

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

This Year (Jun15) TTM:Last Year (Jun14) TTM:
Accounts Receivable was $5.19 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 $60.00 Mil.
Total Assets was $62.63 Mil.
Property, Plant and Equipment(Net PPE) was $0.88 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.28 Mil.
Selling, General & Admin. Expense(SGA) was $14.13 Mil.
Total Current Liabilities was $20.27 Mil.
Long-Term Debt was $0.00 Mil.
Net Income was -11.687 + -17.525 + -13.438 + -5.625 = $-48.28 Mil.
Non Operating Income was 2.467 + -1.887 + -0.406 + 7.347 = $7.52 Mil.
Cash Flow from Operations was -11.309 + -12.627 + -11.791 + -11.722 = $-47.45 Mil.
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.



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)
=(5.189 / 0.1) / (1.655 / 0.1)
=51.89 / 16.55
=3.1353

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 / 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 - (60.001 + 0.879) / 62.634) / (1 - (105.037 + 0.239) / 105.582)
=0.02800396 / 0.00289822
=9.6625

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 / 0.1
=1

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))
=(0.126 / (0.126 + 0.239)) / (0.283 / (0.283 + 0.879))
=0.34520548 / 0.24354561
=1.4174

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)
=(14.127 / 0.1) / (12.526 / 0.1)
=141.27 / 125.26
=1.1278

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 + 20.271) / 62.634) / ((0 + 22.5) / 105.582)
=0.32364211 / 0.21310451
=1.5187

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
=(-48.275 - 7.521 - -47.449) / 62.634
=-0.1333

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 2.22 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

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 8.33332.07750.24460.30880.418.5261133.87550.5714261.453.1353
GMI 1111111111
AQI 0.88080.91810.96861.01670.29640.29710.26772.42478.29739.6625
SGI 0.433330.33330.33330.33330.33331
DEPI 0.79080.64450.70520.75990.77511.09192.87252.57782.20081.4174
SGAI 2.91320.37930.39180.40990.46794.61934.62923.75073.32521.1278
LVGI 0.5570.31690.6442.97010.46290.71570.35310.27922.03831.5187
TATA 0.0382-0.0304-0.0632-0.0893-0.0678-0.0852-0.0942-0.102-0.1168-0.1333
M-score 3.650.41-1.51-2.31-1.6111.85118.2442.57238.342.22
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