Switch to:
CommVault Systems Inc (NAS:CVLT)
Beneish M-Score
-2.79 (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 -2.79 suggests that the company is not a manipulator.

CVLT' s Beneish M-Score Range Over the Past 10 Years
Min: -3.32   Max: 19.1
Current: -2.79

-3.32
19.1

During the past 13 years, the highest Beneish M-Score of CommVault Systems Inc was 19.10. The lowest was -3.32. 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 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 * 1.0497+0.528 * 1.0108+0.404 * 1.6613+0.892 * 0.9555+0.115 * 0.7212
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1116+4.679 * -0.1171-0.327 * 0.9738
=-2.79

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

This Year (Dec15) TTM:Last Year (Dec14) TTM:
Accounts Receivable was $114.6 Mil.
Revenue was 155.696 + 140.742 + 139.123 + 150.735 = $586.3 Mil.
Gross Profit was 135.267 + 119.803 + 118.576 + 129.821 = $503.5 Mil.
Total Current Assets was $532.7 Mil.
Total Assets was $730.6 Mil.
Property, Plant and Equipment(Net PPE) was $137.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $11.3 Mil.
Selling, General & Admin. Expense(SGA) was $428.5 Mil.
Total Current Liabilities was $255.2 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was 4.878 + -9.236 + -1.3 + 3.352 = $-2.3 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was 15.765 + 9.572 + 21.897 + 35.982 = $83.2 Mil.
Accounts Receivable was $114.2 Mil.
Revenue was 153.021 + 151.144 + 152.643 + 156.819 = $613.6 Mil.
Gross Profit was 133.08 + 130.858 + 131.716 + 136.95 = $532.6 Mil.
Total Current Assets was $514.4 Mil.
Total Assets was $683.4 Mil.
Property, Plant and Equipment(Net PPE) was $134.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $7.8 Mil.
Selling, General & Admin. Expense(SGA) was $403.4 Mil.
Total Current Liabilities was $245.1 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)
=(114.591 / 586.296) / (114.249 / 613.627)
=0.19544906 / 0.1861864
=1.0497

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)
=(119.803 / 613.627) / (135.267 / 586.296)
=0.8679605 / 0.85872494
=1.0108

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 - (532.749 + 137.21) / 730.563) / (1 - (514.435 + 134.847) / 683.408)
=0.0829552 / 0.04993503
=1.6613

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
=586.296 / 613.627
=0.9555

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))
=(7.845 / (7.845 + 134.847)) / (11.323 / (11.323 + 137.21))
=0.05497856 / 0.07623222
=0.7212

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)
=(428.494 / 586.296) / (403.431 / 613.627)
=0.73084926 / 0.65745314
=1.1116

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 + 255.181) / 730.563) / ((0 + 245.131) / 683.408)
=0.34929363 / 0.3586891
=0.9738

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
=(-2.306 - 0 - 83.216) / 730.563
=-0.1171

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 -2.79 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

Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14Mar15
DSRI 0.87571.53080.84051.14111.0960.71021.02861.17880.9585
GMI 1.00760.99140.99381.0010.99861.00120.99960.99511.0097
AQI 19.34610.68860.83270.53920.7580.95520.71651.01920.9337
SGI 1.38031.31231.18261.15571.16141.29181.21941.18251.0362
DEPI 0.87341.10070.94481.01810.95911.15131.73642.9051.0768
SGAI 0.98931.03331.07060.96671.01951.01890.94060.9951.1404
LVGI 0.72870.86961.02520.98251.00571.02720.8780.91811.1214
TATA 0.212-0.0677-0.1487-0.1358-0.0917-0.1573-0.0983-0.0729-0.1376
M-score 6.23-2.11-3.26-3.02-2.79-3.23-2.70-2.24-3.21

CommVault Systems Inc Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 1.03181.23521.17881.15181.02970.99540.95850.93920.89871.0497
GMI 0.99730.99580.99510.99791.00021.00541.00971.01091.01331.0108
AQI 0.74470.74551.01921.16931.16821.22580.93370.84520.96111.6613
SGI 1.21391.2041.18251.16491.13111.08071.03620.98250.95070.9555
DEPI 3.17013.75422.9052.24651.9071.44521.07680.83880.68530.7212
SGAI 0.97550.98510.9951.01021.04811.09831.14041.17481.16031.1116
LVGI 0.88390.88650.91811.07021.07291.18331.12140.97051.03870.9738
TATA -0.0863-0.0771-0.0729-0.0994-0.1203-0.1314-0.1376-0.1375-0.1317-0.1171
M-score -2.48-2.19-2.24-2.47-2.76-2.96-3.21-3.29-3.32-2.79
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GuruFocus Premium Plus Membership

FEEDBACK