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Callidus Software Inc (NAS:CALD)
Beneish M-Score
-2.61 (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 -2.61 suggests that the company is not a manipulator.

CALD' s 10-Year Beneish M-Score Range
Min: -4.14   Max: 2.47
Current: -2.61

-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 * 1.1666+0.528 * 1.0117+0.404 * 0.7191+0.892 * 1.2345+0.115 * 1.1494
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0467+4.679 * -0.1045-0.327 * 0.7136
=-2.61

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
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.
Net Income was -4.043 + -4.109 + -5.235 + 0.25 = $-13.1 Mil.
Non Operating Income was 0 + 0 + -0.02 + 0 = $-0.0 Mil.
Cash Flow from Operations was 8.003 + -0.965 + 3.67 + 0.977 = $11.7 Mil.
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.



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)
=(38.178 / 145.386) / (26.509 / 117.772)
=0.2625975 / 0.22508746
=1.1666

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)
=(23.262 / 117.772) / (23.726 / 145.386)
=0.59657644 / 0.589651
=1.0117

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 - (150.131 + 20.645) / 237.367) / (1 - (70.747 + 14.545) / 139.853)
=0.28054026 / 0.39013107
=0.7191

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
=145.386 / 117.772
=1.2345

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))
=(9.453 / (9.453 + 14.545)) / (10.764 / (10.764 + 20.645))
=0.39390783 / 0.34270432
=1.1494

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)
=(78.626 / 145.386) / (60.85 / 117.772)
=0.54080861 / 0.51667629
=1.0467

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)
=((10.48 + 90.514) / 237.367) / ((14.865 + 68.521) / 139.853)
=0.42547616 / 0.59624034
=0.7136

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
=(-13.137 - -0.02 - 11.685) / 237.367
=-0.1045

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 -2.61 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

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 0.91421.02870.68590.6791.09430.82821.0721.15251.17151.1666
GMI 0.85780.87090.8740.85580.81770.80670.82910.91040.97421.0117
AQI 1.2871.0340.99710.930.85550.88480.83281.03461.01870.7191
SGI 1.13351.14551.12561.16391.18311.19591.23581.19831.21611.2345
DEPI 1.12831.27591.30851.05630.97111.02230.95410.96271.25551.1494
SGAI 1.21881.10261.03970.96910.93350.95480.95861.02421.04151.0467
LVGI 1.10061.09271.07251.03480.6420.64360.53570.59930.97840.7136
TATA -0.2084-0.2162-0.3034-0.3016-0.2271-0.2474-0.165-0.1607-0.1174-0.1045
M-score -3.43-3.41-4.14-4.14-3.32-3.64-2.98-2.83-2.66-2.61
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