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Callidus Software, Inc. (NAS:CALD)
Beneish M-Score
-3.32 (As of Today)

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.

Callidus Software, Inc. has a M-score of -3.32 suggests that the company is not a manipulator.

CALD' s 10-Year Beneish M-Score Range
Min: -3.93   Max: -1.74
Current: -3.32

-3.93
-1.74

During the past 13 years, the highest Beneish M-Score of Callidus Software, Inc. was -1.74. The lowest was -3.93. And the median was -2.89.


Definition

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Z-Score) or business trend (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 Callidus Software, Inc. 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 * 1.0943+0.528 * 0.8177+0.404 * 0.8555+0.892 * 1.1831+0.115 * 0.9711
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9335+4.679 * -0.2264-0.327 * 0.642
=-3.32

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Dec13) TTM:Last Year (Dec12) TTM:
Accounts Receivable was $29.2 Mil.
Revenue was 30.187 + 30.678 + 25.93 + 25.542 = $112.3 Mil.
Gross Profit was 18.521 + 18.9 + 14.26 + 12.867 = $64.5 Mil.
Total Current Assets was $71.6 Mil.
Total Assets was $134.2 Mil.
Property, Plant and Equipment(Net PPE) was $11.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $9.3 Mil.
Selling, General & Admin. Expense(SGA) was $57.9 Mil.
Total Current Liabilities was $64.4 Mil.
Long-Term Debt was $15.2 Mil.
Net Income was -6.98 + -1.413 + -6.415 + -6.603 = $-21.4 Mil.
Non Operating Income was -4.776 + 0 + 0 + 0 = $-4.8 Mil.
Cash Flow from Operations was 6.123 + 5.25 + 5.161 + -2.785 = $13.7 Mil.
Accounts Receivable was $22.6 Mil.
Revenue was 25.233 + 23.925 + 23.781 + 22.013 = $95.0 Mil.
Gross Profit was 11.593 + 11.858 + 11.077 + 10.084 = $44.6 Mil.
Total Current Assets was $58.5 Mil.
Total Assets was $124.7 Mil.
Property, Plant and Equipment(Net PPE) was $10.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $8.2 Mil.
Selling, General & Admin. Expense(SGA) was $52.4 Mil.
Total Current Liabilities was $56.1 Mil.
Long-Term Debt was $59.2 Mil.



1. DSRI = Days Sales in Receivables Index

Measured as the ratio of days’ sales in 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)
=(29.216 / 112.337) / (22.567 / 94.952)
=0.2600746 / 0.23766745
=1.0943

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)
=(18.9 / 94.952) / (18.521 / 112.337)
=0.46983739 / 0.57459252
=0.8177

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 plant, property and equipment to total assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (71.609 + 11.351) / 134.193) / (1 - (58.496 + 10.58) / 124.743)
=0.38178594 / 0.4462535
=0.8555

4. SGI = Sales Growth Index

Ratio of sales 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
=112.337 / 94.952
=1.1831

5. DEPI = Depreciation Index

Measured as the ratio of the rate of depreciation 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))
=(8.208 / (8.208 + 10.58)) / (9.283 / (9.283 + 11.351))
=0.4368746 / 0.44988853
=0.9711

6. SGAI = Sales, General and Administrative expenses Index

The ratio of SGA expenses 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)
=(57.867 / 112.337) / (52.395 / 94.952)
=0.51511968 / 0.55180512
=0.9335

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$sgai= in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((15.184 + 64.448) / 134.193) / ((59.223 + 56.071) / 124.743)
=0.59341396 / 0.92425226
=0.642

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
=(-21.411 - -4.776 - 13.749) / 134.193
=-0.2264

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.

Callidus Software, Inc. has a M-score of -3.32 suggests that the company will not be a manipulator.


Related Terms

Altman Z-Score, Piotroski F-Score, Accounts Receivable, Revenue, Gross Profit, Total Current Assets, Total Assets, Property, Plant and Equipment, Depreciation, Depletion and Amortization, Selling, General & Admin. Expense, Total Current Liabilities, Long-Term Debt, Net Income, Non Operating Income, Cash Flow from Operations


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Callidus Software, Inc. Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 0.9980.87141.68340.76980.90830.74031.79050.93530.90471.0943
GMI 1.53020.80140.93541.18781.06091.0890.95521.0140.85780.8177
AQI 0.07251.10410.73883.62293.59940.98071.19821.65331.2870.8555
SGI 0.81821.0471.23851.32781.06060.75630.87441.18191.13351.1831
DEPI 0.78631.05161.39330.86320.67880.981.35460.79021.12830.9711
SGAI 1.32090.84161.07950.89180.91960.9891.04921.07041.21870.9335
LVGI 0.98421.38891.10621.15361.31391.12761.14241.46591.10060.642
TATA -0.0898-0.16380.0101-0.1462-0.2382-0.2127-0.1862-0.1265-0.2084-0.2264
M-score -3.23-3.48-1.73-1.97-2.67-3.93-2.69-2.89-3.44-3.32

Callidus Software, Inc. Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DSRI 1.03550.93530.99051.3691.23790.90471.02870.68590.6791.0943
GMI 0.94771.01531.01140.9530.89230.85780.87090.8740.85580.8177
AQI 1.14791.65331.74042.51341.59951.2871.0340.99710.930.8555
SGI 1.1961.18191.15361.14991.14851.13351.14551.12561.16391.1831
DEPI 0.94550.79020.78870.83741.02641.12831.27591.30851.05630.9711
SGAI 0.95391.07031.22861.27911.25391.21881.10261.03970.96910.9335
LVGI 1.48271.46591.51551.01921.05451.10061.09271.07251.03480.642
TATA -0.1076-0.1265-0.1206-0.0912-0.1171-0.2084-0.2162-0.3034-0.3016-0.2264
M-score -2.90-2.89-2.84-1.92-2.55-3.44-3.41-4.14-4.14-3.32
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