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EntreMed, Inc. (NAS:ENMD)
Beneish M-Score
-4.94 (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.

EntreMed, Inc. has a M-score of signals that the company is a manipulator.

ENMD' s 10-Year Beneish M-Score Range
Min: -9.22   Max: 13.48
Current: -4.94

-9.22
13.48

During the past 13 years, the highest Beneish M-Score of EntreMed, Inc. was 13.48. The lowest was -9.22. And the median was -2.55.


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 EntreMed, Inc. 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 * +0.528 * +0.404 * +0.892 * +0.115 *
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * +4.679 * -0.327 *
=

* 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 $0.00 Mil.
Revenue was 0 + 0 + 0 + 0 = $0.00 Mil.
Gross Profit was 0 + 0 + 0 + 0 = $0.00 Mil.
Total Current Assets was $15.41 Mil.
Total Assets was $15.51 Mil.
Property, Plant and Equipment(Net PPE) was $0.08 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.02 Mil.
Selling, General & Admin. Expense(SGA) was $2.99 Mil.
Total Current Liabilities was $0.57 Mil.
Long-Term Debt was $0.00 Mil.
Net Income was -1.308 + -1.442 + -1.852 + -1.136 = $-5.74 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was -0.714 + -1.376 + -1.046 + -0.14 = $-3.28 Mil.
Accounts Receivable was $0.67 Mil.
Revenue was 0.669 + 0 + 0 + 0 = $0.67 Mil.
Gross Profit was 0.669 + 0 + 0 + 0 = $0.67 Mil.
Total Current Assets was $8.91 Mil.
Total Assets was $8.98 Mil.
Property, Plant and Equipment(Net PPE) was $0.05 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.02 Mil.
Selling, General & Admin. Expense(SGA) was $2.80 Mil.
Total Current Liabilities was $0.74 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 / 0) / (0.669 / 0.669)
= / 1
=

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 / 0.669) / (0 / 0)
=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 - (15.411 + 0.078) / 15.508) / (1 - (8.908 + 0.053) / 8.978)
=0.00122517 / 0.00189352
=

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 / 0.669
=

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))
=(0.02 / (0.02 + 0.053)) / (0.017 / (0.017 + 0.078))
=0.2739726 / 0.17894737
=

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)
=(2.991 / 0) / (2.799 / 0.669)
= / 4.1838565
=

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 + 0.565) / 15.508) / ((0 + 0.743) / 8.978)
=0.03643281 / 0.08275785
=

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
=(-5.738 - 0 - -3.276) / 15.508
=-0.1588

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.

EntreMed, Inc. has a M-score of 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.

EntreMed, Inc. Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 14.80270.12770.68590.96230.94861.19881.19711.33741.00411
GMI 1111111111
AQI 11.209418.78010.017128.7980.89640.94340.22772.48361.53190.647
SGI 0.326111.51361.16491.07281.0110.70670.69890.52560.34470
DEPI 0.79172.77710.40680.63951.01761.53210.89290.66322.20161.531
SGAI 2.86880.07821.07220.93121.03980.74791.18471.70892.65991
LVGI 0.69932.25890.82663.18341.61551.4980.28240.64660.38040.4402
TATA -0.0044-0.0771-0.557-0.0189-0.13350.1985-0.3876-0.0915-1.3737-0.1588
M-score 13.4712.87-5.657.95-3.39-1.71-4.50-2.47-9.22-4.01

EntreMed, Inc. Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DSRI 11.33741111.00411110
GMI 1111111111
AQI 3.29512.48360.53141.78720.88871.53192.20730.71320.52790.647
SGI 2.29080.52560.52560.52190.52190.34470.34470.34630.34630
DEPI 0.61720.6620.64780.64541.28782.22422.37352.46152.03251.531
SGAI 0.42151.70891.53061.49991.56372.66082.33632.85462.93351.0111
LVGI 0.65160.64662.37920.2930.23580.38040.05390.46310.38570.4402
TATA 0.0642-0.0909-0.0551-1.0055-1.1869-1.3738-0.5328-0.0802-0.0924-0.1588
M-score 0.07-2.46-3.93-7.19-8.32-9.22-4.83-3.53-3.70-4.94
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