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Callidus Software Inc (NAS:CALD)
Beneish M-Score
-2.83 (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 -2.83 suggests that the company is not a manipulator.

CALD' s 10-Year Beneish M-Score Range
Min: -4.14   Max: 2.47
Current: -2.83

-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 -2.94.


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 * 1.1525+0.528 * 0.9104+0.404 * 1.0346+0.892 * 1.1983+0.115 * 0.9627
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0242+4.679 * -0.1607-0.327 * 0.5993
=-2.83

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
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.
Net Income was -5.235 + 0.25 + -2.467 + -6.98 = $-14.4 Mil.
Non Operating Income was -0.02 + 0 + 0 + -4.684 = $-4.7 Mil.
Cash Flow from Operations was 3.67 + 0.977 + 5.469 + 6.123 = $16.2 Mil.
Accounts Receivable was $23.3 Mil.
Revenue was 30.678 + 25.93 + 25.542 + 25.233 = $107.4 Mil.
Gross Profit was 18.9 + 14.26 + 12.867 + 11.593 = $57.6 Mil.
Total Current Assets was $65.2 Mil.
Total Assets was $130.5 Mil.
Property, Plant and Equipment(Net PPE) was $12.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $9.1 Mil.
Selling, General & Admin. Expense(SGA) was $55.6 Mil.
Total Current Liabilities was $58.1 Mil.
Long-Term Debt was $60.7 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)
=(32.183 / 128.679) / (23.304 / 107.383)
=0.25010297 / 0.21701759
=1.1525

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)
=(19.385 / 107.383) / (19.354 / 128.679)
=0.536584 / 0.58936579
=0.9104

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 - (81.042 + 12.723) / 161.555) / (1 - (65.183 + 12.381) / 130.489)
=0.41960942 / 0.40558974
=1.0346

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
=128.679 / 107.383
=1.1983

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))
=(9.105 / (9.105 + 12.381)) / (10.004 / (10.004 + 12.723))
=0.42376431 / 0.44018128
=0.9627

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)
=(68.263 / 128.679) / (55.617 / 107.383)
=0.5304906 / 0.51793114
=1.0242

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)
=((10.928 + 77.236) / 161.555) / ((60.675 + 58.148) / 130.489)
=0.54572127 / 0.91059783
=0.5993

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
=(-14.432 - -4.704 - 16.239) / 161.555
=-0.1607

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 -2.83 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 0.9980.87141.68340.76980.90830.74031.79050.92560.91421.0943
GMI 1.53020.80140.93541.18781.06091.0890.95521.0140.85780.8177
AQI 0.07251.10410.73883.62293.59940.98071.19821.65331.2870.8555
SGI 0.81821.0471.23851.32781.06060.75630.87441.18191.13351.1831
DEPI 0.78631.05161.39330.86320.67880.981.35460.79021.12830.9711
SGAI 1.32090.84161.07950.89180.91960.9891.04921.07041.21870.9335
LVGI 0.98421.38891.10621.15361.31391.12761.14241.46591.10060.642
TATA -0.0898-0.16380.0101-0.1462-0.2382-0.2127-0.1862-0.1265-0.2084-0.2264
M-score -3.23-3.48-1.73-1.97-2.67-3.93-2.69-2.90-3.43-3.32

Callidus Software Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 1.3691.23790.91421.02870.68590.6791.09430.82821.0721.1525
GMI 0.9530.89230.85780.87090.8740.85580.81770.80670.82910.9104
AQI 2.51341.59951.2871.0340.99710.930.85550.88480.83281.0346
SGI 1.14991.14851.13351.14551.12561.16391.18311.19591.23581.1983
DEPI 0.83741.02641.12831.27591.30851.05630.97111.02230.95410.9627
SGAI 1.27911.25391.21881.10261.03970.96910.93350.95480.95861.0242
LVGI 1.01921.05451.10061.09271.07251.03480.6420.64360.53570.5993
TATA -0.0912-0.1171-0.2084-0.2162-0.3034-0.3016-0.2271-0.2474-0.165-0.1607
M-score -1.92-2.55-3.43-3.41-4.14-4.14-3.32-3.64-2.98-2.83
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