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Callidus Software Inc (NAS:CALD)
Beneish M-Score
-2.85 (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 -2.85 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: -2.85

-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 * 1.0633+0.528 * 0.976+0.404 * 0.7252+0.892 * 1.2006+0.115 * 1.2002
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0044+4.679 * -0.1198-0.327 * 0.8444
=-2.85

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $48.4 Mil.
Revenue was 52.507 + 49.751 + 48.378 + 46.784 = $197.4 Mil.
Gross Profit was 32.33 + 31.282 + 30.155 + 29.607 = $123.4 Mil.
Total Current Assets was $249.4 Mil.
Total Assets was $359.3 Mil.
Property, Plant and Equipment(Net PPE) was $31.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $13.5 Mil.
Selling, General & Admin. Expense(SGA) was $107.7 Mil.
Total Current Liabilities was $124.9 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was -3.947 + -5.687 + -4.535 + -2.138 = $-16.3 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was 7.794 + 6.863 + 6.112 + 5.947 = $26.7 Mil.
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.



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)
=(48.444 / 197.42) / (37.945 / 164.429)
=0.24538547 / 0.2307683
=1.0633

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)
=(100.291 / 164.429) / (123.374 / 197.42)
=0.60993499 / 0.62493162
=0.976

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 - (249.382 + 31.566) / 359.261) / (1 - (143.654 + 20.226) / 234.31)
=0.21798358 / 0.3005847
=0.7252

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
=197.42 / 164.429
=1.2006

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))
=(11.34 / (11.34 + 20.226)) / (13.484 / (13.484 + 31.566))
=0.35924729 / 0.29931188
=1.2002

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)
=(107.672 / 197.42) / (89.284 / 164.429)
=0.5453956 / 0.54299424
=1.0044

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 + 124.872) / 359.261) / ((0 + 96.452) / 234.31)
=0.34758017 / 0.4116427
=0.8444

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
=(-16.307 - 0 - 26.716) / 359.261
=-0.1198

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 -2.85 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 local exchange's 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

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 1.0721.15251.17151.16661.16190.92270.82420.89560.88281.0633
GMI 0.82910.91040.97421.01171.01730.96630.95740.94770.95360.976
AQI 0.83281.03461.01870.71910.78990.71630.73470.97611.08370.7252
SGI 1.23581.19831.21611.23451.24231.27781.26691.24991.2291.2006
DEPI 0.95410.96271.25551.14941.16981.22530.98751.02181.09311.2002
SGAI 0.95861.02421.04151.04671.07731.02360.99150.99810.98071.0044
LVGI 0.53570.59930.97840.71360.81330.75430.72560.99351.10130.8444
TATA -0.165-0.1609-0.1175-0.1046-0.1372-0.148-0.1639-0.1547-0.168-0.1198
M-score -2.98-2.83-2.66-2.61-2.77-3.03-3.21-3.11-3.18-2.85
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