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Callidus Software Inc (NAS:CALD)
Beneish M-Score
-3.03 (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 -3.03 suggests that the company is not a manipulator.

CALD' s Beneish M-Score Range Over the Past 10 Years
Min: -4.14   Max: 2.47
Current: -3.03

-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 -2.90.


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 * 0.9227+0.528 * 0.9663+0.404 * 0.7163+0.892 * 1.2778+0.115 * 1.2253
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0236+4.679 * -0.148-0.327 * 0.7543
=-3.03

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $37.9 Mil.
Revenue was 44.944 + 41.614 + 39.745 + 38.126 = $164.4 Mil.
Gross Profit was 27.592 + 25.711 + 23.726 + 23.262 = $100.3 Mil.
Total Current Assets was $143.7 Mil.
Total Assets was $234.3 Mil.
Property, Plant and Equipment(Net PPE) was $20.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $11.3 Mil.
Selling, General & Admin. Expense(SGA) was $89.3 Mil.
Total Current Liabilities was $96.5 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was -2.243 + -4.724 + -4.043 + -4.109 = $-15.1 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was 9.871 + 2.648 + 8.003 + -0.965 = $19.6 Mil.
Accounts Receivable was $32.2 Mil.
Revenue was 35 + 32.515 + 30.977 + 30.187 = $128.7 Mil.
Gross Profit was 19.354 + 19.385 + 18.579 + 18.521 = $75.8 Mil.
Total Current Assets was $81.0 Mil.
Total Assets was $161.6 Mil.
Property, Plant and Equipment(Net PPE) was $12.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $10.0 Mil.
Selling, General & Admin. Expense(SGA) was $68.3 Mil.
Total Current Liabilities was $77.2 Mil.
Long-Term Debt was $10.9 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)
=(37.945 / 164.429) / (32.183 / 128.679)
=0.2307683 / 0.25010297
=0.9227

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)
=(25.711 / 128.679) / (27.592 / 164.429)
=0.58936579 / 0.60993499
=0.9663

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 - (143.654 + 20.226) / 234.31) / (1 - (81.042 + 12.723) / 161.555)
=0.3005847 / 0.41960942
=0.7163

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
=164.429 / 128.679
=1.2778

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))
=(10.004 / (10.004 + 12.723)) / (11.34 / (11.34 + 20.226))
=0.44018128 / 0.35924729
=1.2253

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)
=(89.284 / 164.429) / (68.263 / 128.679)
=0.54299424 / 0.5304906
=1.0236

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 + 96.452) / 234.31) / ((10.928 + 77.236) / 161.555)
=0.4116427 / 0.54572127
=0.7543

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
=(-15.119 - 0 - 19.557) / 234.31
=-0.148

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 -3.03 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 0.87141.68340.76980.90830.74031.79050.92560.91421.09431.1715
GMI 0.80140.93541.18781.06091.0890.95521.0140.85780.81770.9742
AQI 1.10410.73883.62293.59940.98071.19821.65331.2870.85551.0187
SGI 1.0471.23851.32781.06060.75630.87441.18191.13351.18311.2161
DEPI 1.05161.39330.86320.67880.981.35460.79021.12830.97111.2555
SGAI 0.84161.07950.89180.91960.9891.04921.07041.21870.93351.0415
LVGI 1.38891.10621.15361.31391.12761.14241.46591.10060.6420.9784
TATA -0.16380.0101-0.1462-0.2382-0.2127-0.1862-0.1265-0.2084-0.2264-0.1175
M-score -3.48-1.73-1.97-2.67-3.93-2.69-2.90-3.43-3.32-2.66

Callidus Software Inc Quarterly Data

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
DSRI 0.68590.6791.09430.82821.0721.15251.17151.16661.16190.9227
GMI 0.8740.85580.81770.80670.82910.91040.97421.01171.01730.9663
AQI 0.99710.930.85550.88480.83281.03461.01870.71910.78990.7163
SGI 1.12561.16391.18311.19591.23581.19831.21611.23451.24231.2778
DEPI 1.30851.05630.97111.02230.95410.96271.25551.14941.16981.2253
SGAI 1.03970.96910.93350.95480.95861.02421.04151.04671.07731.0236
LVGI 1.07251.03480.6420.64360.53570.59930.97840.71360.81330.7543
TATA -0.3034-0.3016-0.2271-0.2474-0.165-0.1609-0.1175-0.1046-0.1372-0.148
M-score -4.14-4.14-3.32-3.64-2.98-2.83-2.66-2.61-2.77-3.03
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