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CommVault Systems Inc (NAS:CVLT)
Beneish M-Score
-2.99 (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.

CommVault Systems Inc has a M-score of -2.99 suggests that the company is not a manipulator.

CVLT' s Beneish M-Score Range Over the Past 10 Years
Min: -3.26   Max: 6.23
Current: -2.99

-3.26
6.23

During the past 13 years, the highest Beneish M-Score of CommVault Systems Inc was 6.23. The lowest was -3.26. And the median was -2.89.


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 CommVault Systems 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 * 0.9837+0.528 * 1.0045+0.404 * 1.279+0.892 * 0.9796+0.115 * 0.7974
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0639+4.679 * -0.1178-0.327 * 1.0257
=-2.99

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $113.4 Mil.
Revenue was 159.565 + 155.696 + 140.742 + 139.123 = $595.1 Mil.
Gross Profit was 138.768 + 135.267 + 119.803 + 118.576 = $512.4 Mil.
Total Current Assets was $517.4 Mil.
Total Assets was $714.6 Mil.
Property, Plant and Equipment(Net PPE) was $135.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $11.2 Mil.
Selling, General & Admin. Expense(SGA) was $431.5 Mil.
Total Current Liabilities was $265.0 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was 5.794 + 4.878 + -9.236 + -1.3 = $0.1 Mil.
Non Operating Income was -0.083 + 0 + 0 + 0 = $-0.1 Mil.
Cash Flow from Operations was 37.179 + 15.765 + 9.572 + 21.897 = $84.4 Mil.
Accounts Receivable was $117.7 Mil.
Revenue was 150.735 + 153.021 + 151.144 + 152.643 = $607.5 Mil.
Gross Profit was 129.821 + 133.08 + 130.858 + 131.716 = $525.5 Mil.
Total Current Assets was $525.4 Mil.
Total Assets was $713.5 Mil.
Property, Plant and Equipment(Net PPE) was $140.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $9.0 Mil.
Selling, General & Admin. Expense(SGA) was $414.0 Mil.
Total Current Liabilities was $257.9 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)
=(113.429 / 595.126) / (117.716 / 607.543)
=0.19059661 / 0.19375748
=0.9837

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)
=(525.475 / 607.543) / (512.414 / 595.126)
=0.8649182 / 0.86101767
=1.0045

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 - (517.377 + 135.904) / 714.573) / (1 - (525.409 + 140.208) / 713.466)
=0.0857743 / 0.06706556
=1.279

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
=595.126 / 607.543
=0.9796

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))
=(9.046 / (9.046 + 140.208)) / (11.179 / (11.179 + 135.904))
=0.06060809 / 0.0760047
=0.7974

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)
=(431.517 / 595.126) / (414.043 / 607.543)
=0.72508511 / 0.68150403
=1.0639

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 + 264.964) / 714.573) / ((0 + 257.929) / 713.466)
=0.37080046 / 0.36151548
=1.0257

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
=(0.136 - -0.083 - 84.413) / 714.573
=-0.1178

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.

CommVault Systems Inc has a M-score of -2.99 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.

CommVault Systems Inc Annual Data

Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14Mar15Mar16
DSRI 0.87571.53080.84051.14111.0960.71021.02861.17880.95850.9837
GMI 1.00760.99140.99381.0010.99861.00120.99960.99511.00971.0045
AQI 19.34610.68860.83270.53920.7580.95520.71651.01921.40911.279
SGI 1.38031.31231.18261.15571.16141.29181.21941.18251.03620.9796
DEPI 0.87341.10070.94481.01810.95911.15131.73642.9051.07680.7974
SGAI 0.98931.03331.07060.96671.01951.01890.94060.9951.14041.0639
LVGI 0.72870.86961.02520.98251.00571.02720.8780.91811.12141.0257
TATA 0.2274-0.0677-0.1487-0.1358-0.0917-0.1573-0.0983-0.0729-0.1376-0.1178
M-score 6.30-2.11-3.26-3.02-2.79-3.23-2.70-2.24-3.01-2.99

CommVault Systems Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 1.23521.17881.15181.02970.99540.95850.93920.89871.04970.9837
GMI 0.99580.99510.99791.00021.00541.00971.01091.01331.01081.0045
AQI 0.74551.01921.16931.16821.22581.40910.84520.96111.66131.279
SGI 1.2041.18251.16491.13111.08071.03620.98250.95070.95550.9796
DEPI 3.75422.9052.24651.9071.44521.07680.83880.68530.72120.7974
SGAI 0.98510.9951.01021.04811.09831.14041.17481.16031.11161.0639
LVGI 0.88650.91811.07021.07291.18331.12140.97051.03870.97381.0257
TATA -0.0771-0.0729-0.0994-0.1203-0.1314-0.1376-0.1375-0.1317-0.1171-0.1178
M-score -2.19-2.24-2.47-2.76-2.96-3.01-3.29-3.32-2.79-2.99
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