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Guardant Health Beneish M-Score

: 5.45 (As of Today)
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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.

Warning Sign:

Beneish M-Score 5.45 higher than -1.78, which implies that the company might have manipulated its financial results.

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

GH' s Beneish M-Score Range Over the Past 10 Years
Min: -5.01   Med: -2.18   Max: 5.45
Current: 5.45

During the past 6 years, the highest Beneish M-Score of Guardant Health was 5.45. The lowest was -5.01. And the median was -2.18.


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.

* Premium members only.

Guardant Health Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Beneish M-Score
Premium Member Only - - -1.51 -3.87 -1.69

Guardant Health Quarterly Data
Dec16 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22
Beneish M-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -4.61 -5.01 -3.82 -1.69 5.45

Competitive Comparison

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 Beneish M-Score Distribution

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:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1.3371+0.528 * 0.9767+0.404 * 20.5553+0.892 * 1.3129+0.115 * 0.8967
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8584+4.679 * -0.1049-0.327 * 1.2176
=5.45

* 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.

This Year (Mar22) TTM:Last Year (Mar21) TTM:
Total Receivables was $84.3 Mil.
Revenue was 96.099 + 108.108 + 94.779 + 92.101 = $391.1 Mil.
Gross Profit was 64.118 + 74.686 + 63.963 + 62.174 = $264.9 Mil.
Total Current Assets was $1,113.3 Mil.
Total Assets was $2,129.6 Mil.
Property, Plant and Equipment(Net PPE) was $339.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $24.5 Mil.
Selling, General, & Admin. Expense(SGA) was $401.9 Mil.
Total Current Liabilities was $228.8 Mil.
Long-Term Debt & Capital Lease Obligation was $1,360.8 Mil.
Net Income was -123.228 + -90.911 + -107.526 + -97.575 = $-419.2 Mil.
Non Operating Income was -0.048 + 25.898 + -0.187 + -0.243 = $25.4 Mil.
Cash Flow from Operations was -28.619 + -76.988 + -53.145 + -62.593 = $-221.3 Mil.
Total Receivables was $48.0 Mil.
Revenue was 78.665 + 78.316 + 74.569 + 66.335 = $297.9 Mil.
Gross Profit was 49.918 + 49.909 + 53.382 + 43.9 = $197.1 Mil.
Total Current Assets was $2,033.0 Mil.
Total Assets was $2,346.7 Mil.
Property, Plant and Equipment(Net PPE) was $277.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $17.8 Mil.
Selling, General, & Admin. Expense(SGA) was $356.7 Mil.
Total Current Liabilities was $95.5 Mil.
Long-Term Debt & Capital Lease Obligation was $1,343.1 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)
=(84.331 / 391.087) / (48.039 / 297.885)
=0.21563233 / 0.16126693
=1.3371

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)
=(197.109 / 297.885) / (264.941 / 391.087)
=0.66169495 / 0.67744773
=0.9767

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 - (1113.28 + 339.929) / 2129.598) / (1 - (2033.044 + 277.436) / 2346.741)
=0.31761347 / 0.01545164
=20.5553

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
=391.087 / 297.885
=1.3129

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))
=(17.771 / (17.771 + 277.436)) / (24.462 / (24.462 + 339.929))
=0.06019844 / 0.06713119
=0.8967

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)
=(401.947 / 391.087) / (356.656 / 297.885)
=1.02776876 / 1.19729426
=0.8584

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)
=((1360.84 + 228.809) / 2129.598) / ((1343.143 + 95.501) / 2346.741)
=0.74645496 / 0.6130391
=1.2176

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
=(-419.24 - 25.42 - -221.345) / 2129.598
=-0.1049

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 5.45 signals that the company is likely to be a manipulator.


Guardant Health Beneish M-Score Related Terms

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Guardant Health Business Description

Guardant Health logo
Industry
Traded in Other Exchanges
Address
505 Penobscot Drive, Redwood City, CA, USA, 94063
Guardant Health, based in Redwood City, California, provides cancer blood tests and analytics for clinical and research use, and the firm maintains research partnerships with large biopharmaceutical companies. The company offers Guardant 360, a blood-based (liquid biopsy) test for treatment selection in advanced stage cancer, and Guardant Omni, a broader gene panel for immuno-oncology research. The company's pipeline includes Guardant Reveal (formerly Lunar-1), for cancer recurrence detection in survivors, and Lunar-2, a liquid biopsy for early detection of cancer in higher-risk individuals, with an initial focus on colorectal cancer. Additionally, Guardant offers research development services. The United States accounts for 90% of total revenue, and other markets the remaining 10%.
Executives
Talasaz Amirali director, officer: Chairman, President and COO 18 ISABELLA AVENUE ATHERTON CA 94027
Kaul Samir director C/O KHOSLA VENTURES 3000 SAND HILL ROAD, BLDG. 3, SUITE 170 MENLO PARK CA 94025
Meresman Stanley J director 2071 HUNTINGTON LANE LOS ALTOS CA 94024
Svf Bluebird (cayman) Ltd 10 percent owner C/O WALKERS CORPORATE LIMITED 27 HOSPITAL ROAD GEORGE TOWN E9 KY1-9008
Svf Enterprise (cayman) Ltd 10 percent owner C/O WALKERS CORPORATE LIMITED 27 HOSPITAL ROAD GEORGE TOWN E9 KY1-9008
Sb Investment Advisers (uk) Ltd 10 percent owner 69 GROSVENOR STREET LONDON X0 W1K 3JP
Softbank Vision Fund (aiv M1) L.p. 10 percent owner 251 LITTLE FALLS DRIVE WILMINGTON DE 19808
Svf Endurance (cayman) Ltd 10 percent owner C/O WALKERS CORPORATE LIMITED 27 HOSPITAL ROAD GEORGE TOWN E9 KY1-9008
Clark Ian T director SOLAZYME, INC. 225 GATEWAY BLVD. SOUTH SAN FRANCISCO CA 94080
Eltoukhy Helmy director, officer: Chief Executive Officer 2 BARRY LANE ATHERTON CA 94027
Bertocci Derek A officer: Chief Financial Officer 3070 ORCHARD DRIVE SAN JOSE CA 95134
Saia John G. officer: See Remarks C/O ACELRX PHARMACEUTICALS, INC. 351 GALVESTON DRIVE REDWOOD CITY CA 94063
Gadde Vijaya director C/O TWITTER INC 1355 MARKET STREET SUITE 900 SAN FRANCISCO CA 94103
Jallal Bahija director 120 MONUMENT CIRCLE INDIANAPOLIS IN 46204
Nishar Dipchand director C/O LINKEDIN CORPORATION 2029 STIERLIN COURT MOUNTAIN VIEW CA 94043

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