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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 -2.58 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 Sep20
Beneish M-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.00 -2.05 0.00 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 * 0.7396+0.528 * 0.9969+0.404 * 0.938+0.892 * 1.3793+0.115 * 2.7108
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.2914+4.679 * -0.0862-0.327 * 0.7456
=-2.58

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

This Year (Sep20) TTM:Last Year (Sep19) TTM:
Accounts Receivable was $12.62 Mil.
Revenue was 15.217 + 12.715 + 17.418 + 17.635 = $62.99 Mil.
Gross Profit was 12.742 + 10.569 + 15.027 + 15.624 = $53.96 Mil.
Total Current Assets was $201.07 Mil.
Total Assets was $210.39 Mil.
Property, Plant and Equipment(Net PPE) was $6.65 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.41 Mil.
Selling, General, & Admin. Expense(SGA) was $43.03 Mil.
Total Current Liabilities was $30.24 Mil.
Long-Term Debt & Capital Lease Obligation was $12.46 Mil.
Net Income was -4.589 + -1.376 + 0.57 + 2.055 = $-3.34 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was -2.955 + 13.501 + -0.251 + 4.493 = $14.79 Mil.
Accounts Receivable was $12.37 Mil.
Revenue was 14.774 + 10.739 + 8.717 + 11.436 = $45.67 Mil.
Gross Profit was 13.066 + 8.746 + 7.119 + 10.07 = $39.00 Mil.
Total Current Assets was $109.86 Mil.
Total Assets was $113.20 Mil.
Property, Plant and Equipment(Net PPE) was $1.80 Mil.
(DDA) was $0.34 Mil.
Selling, General, & Admin. Expense(SGA) was $24.16 Mil.
Total Current Liabilities was $9.24 Mil.
Long-Term Debt & Capital Lease Obligation was $21.57 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)
=(12.618 / 62.985) / (12.369 / 45.666)
=0.20033341 / 0.27085797
=0.7396

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)
=(39.001 / 45.666) / (53.962 / 62.985)
=0.85404896 / 0.85674367
=0.9969

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 - (201.065 + 6.646) / 210.394) / (1 - (109.863 + 1.798) / 113.2)
=0.01275226 / 0.01359541
=0.938

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
=62.985 / 45.666
=1.3793

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))
=(0.338 / (0.338 + 1.798)) / (0.412 / (0.412 + 6.646))
=0.1582397 / 0.05837348
=2.7108

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)
=(43.025 / 62.985) / (24.155 / 45.666)
=0.68309915 / 0.52894933
=1.2914

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)
=((12.455 + 30.24) / 210.394) / ((21.57 + 9.238) / 113.2)
=0.20292879 / 0.27215548
=0.7456

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
=(-3.34 - 0 - 14.788) / 210.394
=-0.0862

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 -2.58 suggests that the company will not be a manipulator.


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