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Callidus Software Inc (NAS:CALD)
Beneish M-Score
-3.11 (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 -3.11 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: -3.11

-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 -2.94.


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 * 0.8956+0.528 * 0.9477+0.404 * 0.9761+0.892 * 1.2499+0.115 * 1.0218
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9981+4.679 * -0.1547-0.327 * 0.9935
=-3.11

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $42.7 Mil.
Revenue was 48.378 + 46.784 + 44.944 + 41.614 = $181.7 Mil.
Gross Profit was 30.155 + 29.607 + 27.592 + 25.711 = $113.1 Mil.
Total Current Assets was $155.5 Mil.
Total Assets was $247.1 Mil.
Property, Plant and Equipment(Net PPE) was $23.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $12.1 Mil.
Selling, General & Admin. Expense(SGA) was $98.1 Mil.
Total Current Liabilities was $104.5 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was -4.535 + -2.138 + -2.243 + -4.724 = $-13.6 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was 6.112 + 5.947 + 9.871 + 2.648 = $24.6 Mil.
Accounts Receivable was $38.2 Mil.
Revenue was 39.745 + 38.126 + 35 + 32.515 = $145.4 Mil.
Gross Profit was 23.726 + 23.262 + 19.354 + 19.385 = $85.7 Mil.
Total Current Assets was $150.1 Mil.
Total Assets was $237.4 Mil.
Property, Plant and Equipment(Net PPE) was $20.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $10.8 Mil.
Selling, General & Admin. Expense(SGA) was $78.6 Mil.
Total Current Liabilities was $90.5 Mil.
Long-Term Debt was $10.5 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)
=(42.737 / 181.72) / (38.178 / 145.386)
=0.2351805 / 0.2625975
=0.8956

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)
=(29.607 / 145.386) / (30.155 / 181.72)
=0.589651 / 0.62219348
=0.9477

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 - (155.529 + 23.921) / 247.12) / (1 - (150.131 + 20.645) / 237.367)
=0.27383457 / 0.28054026
=0.9761

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
=181.72 / 145.386
=1.2499

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))
=(10.764 / (10.764 + 20.645)) / (12.071 / (12.071 + 23.921))
=0.34270432 / 0.33538008
=1.0218

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)
=(98.089 / 181.72) / (78.626 / 145.386)
=0.53978098 / 0.54080861
=0.9981

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 + 104.457) / 247.12) / ((10.48 + 90.514) / 237.367)
=0.42269747 / 0.42547616
=0.9935

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
=(-13.64 - 0 - 24.578) / 247.12
=-0.1547

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 -3.11 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 1.68340.76530.91370.74031.79050.92560.91421.09431.17150.8242
GMI 0.93871.17931.06861.0890.95271.01660.85780.81770.97420.9574
AQI 0.73883.62293.59940.98071.19821.65331.2870.85551.01870.7347
SGI 1.23851.33571.05430.75630.87441.18191.13351.18311.21611.2669
DEPI 1.39330.86320.6690.99441.31620.81321.12830.97111.25550.9875
SGAI 1.08750.88660.92510.9891.04921.07041.21870.93351.04150.9915
LVGI 1.10621.15361.31391.12761.14241.46591.10060.6420.97840.7256
TATA 0.0419-0.1066-0.2382-0.2127-0.1862-0.1258-0.2084-0.2264-0.1175-0.1639
M-score -1.58-1.79-2.67-3.93-2.70-2.89-3.43-3.32-2.66-3.21

Callidus Software Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 1.09430.82821.0721.15251.17151.16661.16190.92270.82420.8956
GMI 0.81770.80670.82910.91040.97421.01171.01730.96630.95740.9477
AQI 0.85550.88480.83281.03461.01870.71910.78990.71630.73470.9761
SGI 1.18311.19591.23581.19831.21611.23451.24231.27781.26691.2499
DEPI 0.97111.02230.95410.96271.25551.14941.16981.22530.98751.0218
SGAI 0.93350.95480.95861.02421.04151.04671.07731.02360.99150.9981
LVGI 0.6420.64360.53570.59930.97840.71360.81330.75430.72560.9935
TATA -0.2271-0.2474-0.165-0.1609-0.1175-0.1046-0.1372-0.148-0.1639-0.1547
M-score -3.32-3.64-2.98-2.83-2.66-2.61-2.77-3.03-3.21-3.11
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