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Castle Biosciences Beneish M-Score

: 0.00 (As of Today)
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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.

Castle Biosciences has a M-score of -2.36 suggests that the company is not a manipulator.

During the past 3 years, the highest Beneish M-Score of Castle Biosciences was 0.00. The lowest was -2.05. And the median was -2.05.


Castle Biosciences Beneish M-Score Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Castle Biosciences Annual Data
Dec17 Dec18 Dec19
Beneish M-Score 0.00 0.00 -2.05

Castle Biosciences Quarterly Data
Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20
Beneish M-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.00 0.00 -2.05 0.00 0.00

Competitive Comparison
* 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.


Castle Biosciences Beneish M-Score Distribution

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



Castle Biosciences 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 Castle Biosciences 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 * 0.7124+0.528 * 0.9421+0.404 * 0.0457+0.892 * 1.8074+0.115 * 2.2419
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0152+4.679 * -0.069-0.327 * 0.1997
=-2.36

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Jun20) TTM:Last Year (Jun19) TTM:
Accounts Receivable was $12.53 Mil.
Revenue was 12.715 + 17.418 + 17.635 + 14.775 = $62.54 Mil.
Gross Profit was 10.569 + 15.027 + 15.624 + 13.066 = $54.29 Mil.
Total Current Assets was $195.67 Mil.
Total Assets was $201.55 Mil.
Property, Plant and Equipment(Net PPE) was $5.02 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.38 Mil.
Selling, General, & Admin. Expense(SGA) was $38.44 Mil.
Total Current Liabilities was $28.24 Mil.
Long-Term Debt & Capital Lease Obligation was $14.74 Mil.
Net Income was -1.376 + 0.57 + 2.055 + 5.849 = $7.10 Mil.
Non Operating Income was 0 + 0 + 0 + 2.503 = $2.50 Mil.
Cash Flow from Operations was 13.501 + -0.251 + 4.493 + 0.752 = $18.50 Mil.
Accounts Receivable was $9.73 Mil.
Revenue was 10.739 + 8.717 + 11.436 + 3.712 = $34.60 Mil.
Gross Profit was 8.746 + 7.119 + 10.07 + 2.361 = $28.30 Mil.
Total Current Assets was $28.53 Mil.
Total Assets was $33.35 Mil.
Property, Plant and Equipment(Net PPE) was $1.74 Mil.
(DDA) was $0.33 Mil.
Selling, General, & Admin. Expense(SGA) was $20.95 Mil.
Total Current Liabilities was $11.75 Mil.
Long-Term Debt & Capital Lease Obligation was $23.86 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Accounts Receivable 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)
=(12.528 / 62.543) / (9.73 / 34.604)
=0.20031019 / 0.28118137
=0.7124

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)
=(28.296 / 34.604) / (54.286 / 62.543)
=0.81770894 / 0.86797883
=0.9421

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 - (195.671 + 5.024) / 201.546) / (1 - (28.525 + 1.743) / 33.347)
=0.00422236 / 0.09233214
=0.0457

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
=62.543 / 34.604
=1.8074

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))
=(0.33 / (0.33 + 1.743)) / (0.384 / (0.384 + 5.024))
=0.15918958 / 0.07100592
=2.2419

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)
=(38.444 / 62.543) / (20.951 / 34.604)
=0.6146811 / 0.60545024
=1.0152

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)
=((14.741 + 28.242) / 201.546) / ((23.859 + 11.746) / 33.347)
=0.21326645 / 1.06771224
=0.1997

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
=(7.098 - 2.503 - 18.495) / 201.546
=-0.069

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.

Castle Biosciences has a M-score of -2.36 suggests that the company will not be a manipulator.


Castle Biosciences Beneish M-Score Headlines

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