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Callidus Software Inc (NAS:CALD)
Beneish M-Score
-3.18 (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 -3.18 suggests that the company is not a manipulator.

CALD' s Beneish M-Score Range Over the Past 10 Years
Min: -4.14   Max: 2.56
Current: -3.18

-4.14
2.56

During the past 13 years, the highest Beneish M-Score of Callidus Software Inc was 2.56. The lowest was -4.14. And the median was -2.98.


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 * 0.8828+0.528 * 0.9536+0.404 * 1.0837+0.892 * 1.229+0.115 * 1.0931
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9807+4.679 * -0.168-0.327 * 1.1013
=-3.18

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $46.0 Mil.
Revenue was 49.751 + 48.378 + 46.784 + 44.944 = $189.9 Mil.
Gross Profit was 31.282 + 30.155 + 29.607 + 27.592 = $118.6 Mil.
Total Current Assets was $152.2 Mil.
Total Assets was $258.4 Mil.
Property, Plant and Equipment(Net PPE) was $25.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $12.6 Mil.
Selling, General & Admin. Expense(SGA) was $103.2 Mil.
Total Current Liabilities was $115.5 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was -5.687 + -4.535 + -2.138 + -2.243 = $-14.6 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was 6.863 + 6.112 + 5.947 + 9.871 = $28.8 Mil.
Accounts Receivable was $42.4 Mil.
Revenue was 41.614 + 39.745 + 38.126 + 35 = $154.5 Mil.
Gross Profit was 25.711 + 23.726 + 23.262 + 19.354 = $92.1 Mil.
Total Current Assets was $144.1 Mil.
Total Assets was $229.4 Mil.
Property, Plant and Equipment(Net PPE) was $19.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $10.9 Mil.
Selling, General & Admin. Expense(SGA) was $85.6 Mil.
Total Current Liabilities was $93.1 Mil.
Long-Term Debt was $0.0 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)
=(45.983 / 189.857) / (42.385 / 154.485)
=0.24219808 / 0.27436321
=0.8828

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)
=(92.053 / 154.485) / (118.636 / 189.857)
=0.59587015 / 0.6248703
=0.9536

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 - (152.161 + 25.88) / 258.366) / (1 - (144.139 + 19.454) / 229.41)
=0.31089617 / 0.28689682
=1.0837

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
=189.857 / 154.485
=1.229

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))
=(10.871 / (10.871 + 19.454)) / (12.629 / (12.629 + 25.88))
=0.3584831 / 0.32794931
=1.0931

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)
=(103.159 / 189.857) / (85.591 / 154.485)
=0.54335105 / 0.55404085
=0.9807

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)
=((0 + 115.501) / 258.366) / ((0 + 93.123) / 229.41)
=0.44704412 / 0.40592389
=1.1013

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
=(-14.603 - 0 - 28.793) / 258.366
=-0.168

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 -3.18 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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.68340.76980.90830.74031.79050.92560.91421.09431.17150.8242
GMI 0.93541.18781.06091.0890.95521.0140.85780.81770.97420.9574
AQI 0.73883.62293.59940.98071.19821.65331.2870.85551.01870.7347
SGI 1.23851.32781.06060.75630.87441.18191.13351.18311.21611.2669
DEPI 1.39330.86320.67880.981.35460.79021.12830.97111.25550.9875
SGAI 1.07950.89180.91960.9891.04921.07041.21870.93351.04150.9915
LVGI 1.10621.15361.31391.12761.14241.46591.10060.6420.97840.7256
TATA 0.0419-0.1145-0.2382-0.2127-0.1862-0.1265-0.2084-0.2264-0.1175-0.1639
M-score -1.59-1.82-2.67-3.93-2.69-2.90-3.43-3.32-2.66-3.21

Callidus Software Inc Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 0.82821.0721.15251.17151.16661.16190.92270.82420.89560.8828
GMI 0.80670.82910.91040.97421.01171.01730.96630.95740.94770.9536
AQI 0.88480.83281.03461.01870.71910.78990.71630.73470.97611.0837
SGI 1.19591.23581.19831.21611.23451.24231.27781.26691.24991.229
DEPI 1.02230.95410.96271.25551.14941.16981.22530.98751.02181.0931
SGAI 0.95480.95861.02421.04151.04671.07731.02360.99150.99810.9807
LVGI 0.64360.53570.59930.97840.71360.81330.75430.72560.99351.1013
TATA -0.2474-0.165-0.1609-0.1175-0.1046-0.1372-0.148-0.1639-0.1547-0.168
M-score -3.64-2.98-2.83-2.66-2.61-2.77-3.03-3.21-3.11-3.18
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