Guardant Health (MEX:GH) Beneish M-Score : -2.67 (As of Mar. 25, 2025)

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What is Guardant Health Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.67 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Guardant Health's Beneish M-Score or its related term are showing as below:

MEX:GH' s Beneish M-Score Range Over the Past 10 Years
Min: -3.87 Med: -2.69 Max: -1.51
Current: -2.67

During the past 9 years, the highest Beneish M-Score of Guardant Health was -1.51. The lowest was -3.87. And the median was -2.69.

Guardant Health Beneish M-Score Historical Data

The historical data trend for Guardant Health's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Guardant Health Beneish M-Score Chart

Guardant Health Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Beneish M-Score

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-3.87

-1.69

-3.61

-2.71

-2.67

Guardant Health Quarterly Data
	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
Beneish M-Score	Get a 7-Day Free Trial															-2.71	-2.83	-3.09	-3.36	-2.67

Competitive Comparison of Guardant Health's Beneish M-Score

For the Diagnostics & Research subindustry, Guardant Health's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Guardant Health's Beneish M-Score Distribution in the Medical Diagnostics & Research Industry

For the Medical Diagnostics & Research industry and Healthcare sector, Guardant Health's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Guardant Health's Beneish M-Score falls into.

Guardant Health Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski 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 Guardant Health for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 1.0658

0.528 * 0.9822

0.404 * 1.3329

0.892 * 1.4316

0.115 * 1.0495

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9242

4.679 * -0.094474

0.327 * 1.203

-2.40

This Year (Dec24) TTM:

Last Year (Dec23) TTM:

Total Receivables was MXN2,299 Mil.
Revenue was 4208.972 + 3770.22 + 3246.963 + 2796.32 = MXN14,022 Mil.
Gross Profit was 2590.716 + 2303.509 + 1920.203 + 1712.651 = MXN8,527 Mil.
Total Current Assets was MXN22,005 Mil.
Total Assets was MXN30,983 Mil.
Property, Plant and Equipment(Net PPE) was MXN5,820 Mil.
Depreciation, Depletion and Amortization(DDA) was MXN799 Mil.
Selling, General, & Admin. Expense(SGA) was MXN10,379 Mil.
Total Current Liabilities was MXN4,705 Mil.
Long-Term Debt & Capital Lease Obligation was MXN27,255 Mil.
Net Income was -2315.108 + -2121.709 + -1880.156 + -1908.32 = MXN-8,225 Mil.
Non Operating Income was 97.334 + -59.209 + -277.458 + -483.283 = MXN-723 Mil.
Cash Flow from Operations was -1345.464 + -1005.367 + -1722.126 + -502.601 = MXN-4,576 Mil.

Total Receivables was MXN1,507 Mil.
Revenue was 2631.925 + 2491.425 + 2351.286 + 2320.07 = MXN9,795 Mil.
Gross Profit was 1570.746 + 1487.853 + 1428.121 + 1363.429 = MXN5,850 Mil.
Total Current Assets was MXN22,866 Mil.
Total Assets was MXN30,323 Mil.
Property, Plant and Equipment(Net PPE) was MXN5,138 Mil.
Depreciation, Depletion and Amortization(DDA) was MXN745 Mil.
Selling, General, & Admin. Expense(SGA) was MXN7,844 Mil.
Total Current Liabilities was MXN3,495 Mil.
Long-Term Debt & Capital Lease Obligation was MXN22,505 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total 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)
	=	(2299.403 / 14022.475)	/	(1507.025 / 9794.706)
	=	0.16398	/	0.153861
	=	1.0658

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)
	=	(5850.149 / 9794.706)	/	(8527.079 / 14022.475)
	=	0.597277	/	0.608101
	=	0.9822

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 Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (22005.141 + 5820.367) / 30983.416)	/	(1 - (22866.111 + 5138.309) / 30323.153)
	=	0.101923	/	0.076467
	=	1.3329

4. SGI = Sales Growth Index

Ratio of Revenue 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
	=	14022.475	/	9794.706
	=	1.4316

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization 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))
	=	(745.454 / (745.454 + 5138.309))	/	(799.096 / (799.096 + 5820.367))
	=	0.126697	/	0.120719
	=	1.0495

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales 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)
	=	(10378.864 / 14022.475)	/	(7844.159 / 9794.706)
	=	0.740159	/	0.800857
	=	0.9242

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 in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((27255.042 + 4704.691) / 30983.416)	/	((22504.696 + 3495.286) / 30323.153)
	=	1.031511	/	0.85743
	=	1.203

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
	=	(-8225.293 - -722.616	-	-4575.558)	/	30983.416
	=	-0.094474

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Guardant Health has a M-score of -2.40 suggests that the company is unlikely to be a manipulator.

Guardant Health Beneish M-Score Related Terms

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Guardant Health Business Description

Industry

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GH:USA 5GH:Germany

Address

3100 Hanover Street, Palo Alto, CA, USA, 94304

Website

https://www.guardanthealth.com

Guardant Health, Inc, based in Redwood City, California, is a leader in liquid-based cancer tests for clinical and research use. The company offers Guardant360 LDT, a liquid biopsy test for treatment selection in advanced stage cancer, Guardant360 CDx, an FDA-approved companion diagnostic for several targeted therapies, and Guardant OMNI, a broader gene panel for immuno-oncology research. In 2021, Guardant launched Reveal, a tumor-agnostic molecular residual disease, or MRD, test. In 2024, the company received US FDA approval for Shield, a liquid biopsy for colorectal cancer, or CRC, screening. Additionally, Guardant offers research development services such as regulatory approval consultancy and clinical trial referrals.