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Callidus Software Inc (NAS:CALD)
Beneish M-Score
-2.66 (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 -2.66 suggests that the company is not a manipulator.

CALD' s 10-Year Beneish M-Score Range
Min: -3.93   Max: -1.74
Current: -2.66

-3.93
-1.74

During the past 13 years, the highest Beneish M-Score of Callidus Software Inc was -1.74. The lowest was -3.93. And the median was -2.80.


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 * 1.1715+0.528 * 0.9742+0.404 * 1.0187+0.892 * 1.2161+0.115 * 1.2555
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0415+4.679 * -0.1174-0.327 * 0.9784
=-2.66

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
Accounts Receivable was $41.6 Mil.
Revenue was 38.126 + 35 + 32.515 + 30.977 = $136.6 Mil.
Gross Profit was 23.262 + 19.354 + 19.385 + 18.579 = $80.6 Mil.
Total Current Assets was $89.0 Mil.
Total Assets was $176.3 Mil.
Property, Plant and Equipment(Net PPE) was $18.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $10.5 Mil.
Selling, General & Admin. Expense(SGA) was $73.3 Mil.
Total Current Liabilities was $91.9 Mil.
Long-Term Debt was $10.5 Mil.
Net Income was -4.109 + -5.235 + 0.25 + -2.467 = $-11.6 Mil.
Non Operating Income was 0 + -0.02 + 0 + 0 = $-0.0 Mil.
Cash Flow from Operations was -0.965 + 3.67 + 0.977 + 5.469 = $9.2 Mil.
Accounts Receivable was $29.2 Mil.
Revenue was 30.187 + 30.678 + 25.93 + 25.542 = $112.3 Mil.
Gross Profit was 18.521 + 18.9 + 14.26 + 12.867 = $64.5 Mil.
Total Current Assets was $71.6 Mil.
Total Assets was $134.2 Mil.
Property, Plant and Equipment(Net PPE) was $11.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $9.3 Mil.
Selling, General & Admin. Expense(SGA) was $57.9 Mil.
Total Current Liabilities was $64.4 Mil.
Long-Term Debt was $15.2 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)
=(41.623 / 136.618) / (29.216 / 112.337)
=0.30466703 / 0.2600746
=1.1715

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)
=(19.354 / 112.337) / (23.262 / 136.618)
=0.57459252 / 0.58981979
=0.9742

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 - (88.973 + 18.755) / 176.298) / (1 - (71.609 + 11.351) / 134.193)
=0.38894372 / 0.38178594
=1.0187

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
=136.618 / 112.337
=1.2161

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))
=(9.283 / (9.283 + 11.351)) / (10.474 / (10.474 + 18.755))
=0.44988853 / 0.35834274
=1.2555

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)
=(73.295 / 136.618) / (57.867 / 112.337)
=0.53649592 / 0.51511968
=1.0415

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)
=((10.481 + 91.878) / 176.298) / ((15.184 + 64.448) / 134.193)
=0.58060216 / 0.59341396
=0.9784

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
=(-11.561 - -0.02 - 9.151) / 176.298
=-0.1174

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 -2.66 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

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 1.23790.91421.02870.68590.6791.09430.82821.0721.15251.1715
GMI 0.89230.85780.87090.8740.85580.81770.80670.82910.91040.9742
AQI 1.59951.2871.0340.99710.930.85550.88480.83281.03461.0187
SGI 1.14851.13351.14551.12561.16391.18311.19591.23581.19831.2161
DEPI 1.02641.12831.27591.30851.05630.97111.02230.95410.96271.2555
SGAI 1.25391.21881.10261.03970.96910.93350.95480.95861.02421.0415
LVGI 1.05451.10061.09271.07251.03480.6420.64360.53570.59930.9784
TATA -0.1171-0.2084-0.2162-0.3034-0.3016-0.2271-0.2474-0.165-0.1607-0.1174
M-score -2.55-3.43-3.41-4.14-4.14-3.32-3.64-2.98-2.83-2.66
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