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BroadSoft (BroadSoft) Beneish M-Score : 0.00 (As of Apr. 26, 2024)


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What is BroadSoft 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.

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

During the past 9 years, the highest Beneish M-Score of BroadSoft was 0.00. The lowest was 0.00. And the median was 0.00.


BroadSoft Beneish M-Score Historical Data

The historical data trend for BroadSoft'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.

BroadSoft Beneish M-Score Chart

BroadSoft Annual Data
Trend Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only -1.92 -2.46 -2.84 -2.58 -2.73

BroadSoft Quarterly Data
Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17
Beneish M-Score Get a 7-Day Free Trial 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 -2.75 -2.73 -2.99 -3.06 -2.99

Competitive Comparison of BroadSoft's Beneish M-Score

For the Software - Application subindustry, BroadSoft'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.


BroadSoft's Beneish M-Score Distribution in the Software Industry

For the Software industry and Technology sector, BroadSoft's Beneish M-Score distribution charts can be found below:

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



BroadSoft 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 BroadSoft 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 * 0.9476+0.528 * 1.0216+0.404 * 0.6441+0.892 * 1.1014+0.115 * 1.1319
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0801+4.679 * -0.096322-0.327 * 0.9132
=-2.99

* 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 (Sep17) TTM:Last Year (Sep16) TTM:
Total Receivables was $109.1 Mil.
Revenue was 91.473 + 88.759 + 79.669 + 101.983 = $361.9 Mil.
Gross Profit was 64.782 + 63.155 + 54.647 + 77.903 = $260.5 Mil.
Total Current Assets was $510.4 Mil.
Total Assets was $714.2 Mil.
Property, Plant and Equipment(Net PPE) was $29.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $23.3 Mil.
Selling, General, & Admin. Expense(SGA) was $173.6 Mil.
Total Current Liabilities was $193.6 Mil.
Long-Term Debt & Capital Lease Obligation was $145.3 Mil.
Net Income was -2.674 + -2.983 + -10.536 + 5.825 = $-10.4 Mil.
Non Operating Income was -3.744 + -3.339 + -3.119 + 8.74 = $-1.5 Mil.
Cash Flow from Operations was 13.854 + 7.587 + 19.283 + 19.16 = $59.9 Mil.
Total Receivables was $104.5 Mil.
Revenue was 84.122 + 81.721 + 73.136 + 89.591 = $328.6 Mil.
Gross Profit was 60.369 + 59.175 + 52.338 + 69.724 = $241.6 Mil.
Total Current Assets was $369.6 Mil.
Total Assets was $627.2 Mil.
Property, Plant and Equipment(Net PPE) was $19.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $19.9 Mil.
Selling, General, & Admin. Expense(SGA) was $145.9 Mil.
Total Current Liabilities was $128.1 Mil.
Long-Term Debt & Capital Lease Obligation was $197.8 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)
=(109.086 / 361.884) / (104.521 / 328.57)
=0.301439 / 0.318109
=0.9476

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)
=(241.606 / 328.57) / (260.487 / 361.884)
=0.735326 / 0.719808
=1.0216

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 - (510.448 + 29.409) / 714.166) / (1 - (369.572 + 19.948) / 627.156)
=0.244074 / 0.378911
=0.6441

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
=361.884 / 328.57
=1.1014

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))
=(19.942 / (19.942 + 19.948)) / (23.263 / (23.263 + 29.409))
=0.499925 / 0.441658
=1.1319

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)
=(173.606 / 361.884) / (145.936 / 328.57)
=0.479728 / 0.444155
=1.0801

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)
=((145.339 + 193.553) / 714.166) / ((197.759 + 128.136) / 627.156)
=0.474528 / 0.519639
=0.9132

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
=(-10.368 - -1.462 - 59.884) / 714.166
=-0.096322

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.

BroadSoft has a M-score of -2.99 suggests that the company is unlikely to be a manipulator.


BroadSoft Beneish M-Score Related Terms

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BroadSoft (BroadSoft) Business Description

Traded in Other Exchanges
N/A
Address
BroadSoft provides cloud-based software and services that enable telecommunications-service providers to deliver hosted Unified Communications to enterprise customers. UC-One is the firm's flagship communications and collaboration offering. It integrates real-time communication services such as instant messaging and web conferencing, with non-real-time services such as email and fax. The firm's clients are typically large telecommunications service providers, and their end-customers are enterprises in hospitality, government, education, and healthcare industries. A large majority of the firm's revenue is generated in the United States, but BroadSoft has a sizable presence in Asia-Pacific and Europe.
Executives
Douglas L Maine director ALBEMARLE CORP, 451 FLORIDA ST, BATON ROUGE LA 70801
Gavin Eva Sage director C/O GAP INC., TWO FOLSOM ST, SAN FRANCISCO CA 94105-1205
Andrew M Geisse director 208 S. AKARD ST., DALLAS TX 75202
Gavin John J Jr director
Markley John D. Jr. director COLUMBIA CAPITAL, 201 NORTH UNION STREET, SUITE VA 22314
Dino Dipalma officer: Chief Revenue Officer C/O BROADSOFT, INC., 9737 WASHINGTONIAN BOULEVARD, SUITE 350, GAITHERBURG MD 20878
Patrick Joggerst officer: VP-Worldwide Sales C/O BROADSOFT, INC., 9737 WASHINGTONIAN BOULEVARD, SUITE 350, GAITHERSBURG MD 20878
Charles L Ill director 901 MARQUETTE AVENUE, SUITE 3200, MINNEAPOLIS MN 55402
Robert P Goodman director 1865 PALMER AVENUE, SUITE 104, LARCHMONT NY 10538
Deer Management Co. Llc 10 percent owner C/O BESSEMER VENTURE PARTNERS, 1865 PALMER AVENUE, SUITE 104, LARCHMONT NY 10538
Andrew M. Miller director 6001 AMERICA CENTER DR., SAN JOSE CA 95164

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