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Callidus Software Inc (NAS:CALD)
Beneish M-Score
-3.64 (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 -3.64 suggests that the company is not a manipulator.

CALD' s 10-Year Beneish M-Score Range
Min: -4.14   Max: 2.47
Current: -3.64

-4.14
2.47

During the past 13 years, the highest Beneish M-Score of Callidus Software Inc was 2.47. The lowest was -4.14. And the median was -2.96.


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 * 0.8282+0.528 * 0.8067+0.404 * 0.8848+0.892 * 1.1959+0.115 * 1.0223
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9548+4.679 * -0.2467-0.327 * 0.6436
=-3.64

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

This Year (Mar14) TTM:Last Year (Mar13) TTM:
Accounts Receivable was $26.5 Mil.
Revenue was 30.977 + 30.187 + 30.678 + 25.93 = $117.8 Mil.
Gross Profit was 18.579 + 18.521 + 18.9 + 14.26 = $70.3 Mil.
Total Current Assets was $70.7 Mil.
Total Assets was $139.9 Mil.
Property, Plant and Equipment(Net PPE) was $14.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $9.5 Mil.
Selling, General & Admin. Expense(SGA) was $60.9 Mil.
Total Current Liabilities was $68.5 Mil.
Long-Term Debt was $14.9 Mil.
Net Income was -2.467 + -6.98 + -1.413 + -6.415 = $-17.3 Mil.
Non Operating Income was 0 + -4.776 + 0 + 0 = $-4.8 Mil.
Cash Flow from Operations was 5.469 + 6.123 + 5.25 + 5.161 = $22.0 Mil.
Accounts Receivable was $26.8 Mil.
Revenue was 25.542 + 25.233 + 23.925 + 23.781 = $98.5 Mil.
Gross Profit was 12.867 + 11.593 + 11.858 + 11.077 = $47.4 Mil.
Total Current Assets was $56.9 Mil.
Total Assets was $124.1 Mil.
Property, Plant and Equipment(Net PPE) was $12.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $8.4 Mil.
Selling, General & Admin. Expense(SGA) was $53.3 Mil.
Total Current Liabilities was $54.0 Mil.
Long-Term Debt was $61.0 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)
=(26.509 / 117.772) / (26.764 / 98.481)
=0.22508746 / 0.27176816
=0.8282

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)
=(18.521 / 98.481) / (18.579 / 117.772)
=0.48126034 / 0.59657644
=0.8067

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 - (70.747 + 14.545) / 139.853) / (1 - (56.869 + 12.517) / 124.105)
=0.39013107 / 0.44090891
=0.8848

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
=117.772 / 98.481
=1.1959

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))
=(8.439 / (8.439 + 12.517)) / (9.453 / (9.453 + 14.545))
=0.4027009 / 0.39390783
=1.0223

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)
=(60.85 / 117.772) / (53.291 / 98.481)
=0.51667629 / 0.54112976
=0.9548

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)
=((14.865 + 68.521) / 139.853) / ((60.987 + 53.993) / 124.105)
=0.59624034 / 0.92647355
=0.6436

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
=(-17.275 - -4.776 - 22.003) / 139.853
=-0.2467

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 -3.64 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

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
DSRI 0.93530.99051.3691.23790.90471.02870.68590.6791.09430.8282
GMI 1.01531.01140.9530.89230.85780.87090.8740.85580.81770.8067
AQI 1.65331.74042.51341.59951.2871.0340.99710.930.85550.8848
SGI 1.18191.15361.14991.14851.13351.14551.12561.16391.18311.1959
DEPI 0.79020.78870.83741.02641.12831.27591.30851.05630.97111.0223
SGAI 1.07031.22861.27911.25391.21881.10261.03970.96910.93350.9548
LVGI 1.46591.51551.01921.05451.10061.09271.07251.03480.6420.6436
TATA -0.1265-0.1206-0.0912-0.1171-0.2084-0.2162-0.3034-0.3016-0.2264-0.2467
M-score -2.89-2.84-1.92-2.55-3.44-3.41-4.14-4.14-3.32-3.64
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