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CommVault Systems Inc (NAS:CVLT)
Beneish M-Score
-2.96 (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 -2.96 suggests that the company is not a manipulator.

CVLT' s 10-Year Beneish M-Score Range
Min: -3.29   Max: 19.1
Current: -2.96

-3.29
19.1

During the past 13 years, the highest Beneish M-Score of CommVault Systems Inc was 19.10. The lowest was -3.29. 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 * 0.9954+0.528 * 1.0054+0.404 * 1.2258+0.892 * 1.0807+0.115 * 1.4452
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0983+4.679 * -0.1314-0.327 * 1.1833
=-2.96

* 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 $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.
Net Income was 3.073 + 6.496 + 12.729 + 15.657 = $38.0 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was 20.239 + 32.182 + 35.444 + 39.919 = $127.8 Mil.
Accounts Receivable was $106.2 Mil.
Revenue was 153.25 + 141.863 + 134.408 + 138.274 = $567.8 Mil.
Gross Profit was 134.752 + 123.707 + 116.63 + 120.418 = $495.5 Mil.
Total Current Assets was $636.5 Mil.
Total Assets was $735.1 Mil.
Property, Plant and Equipment(Net PPE) was $68.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $5.9 Mil.
Selling, General & Admin. Expense(SGA) was $339.9 Mil.
Total Current Liabilities was $222.8 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)
=(114.249 / 613.627) / (106.208 / 567.795)
=0.1861864 / 0.18705343
=0.9954

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)
=(130.858 / 567.795) / (133.08 / 613.627)
=0.87268644 / 0.8679605
=1.0054

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 - (514.435 + 134.847) / 683.408) / (1 - (636.513 + 68.682) / 735.141)
=0.04993503 / 0.04073504
=1.2258

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
=613.627 / 567.795
=1.0807

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))
=(5.928 / (5.928 + 68.682)) / (7.845 / (7.845 + 134.847))
=0.07945316 / 0.05497856
=1.4452

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)
=(403.431 / 613.627) / (339.875 / 567.795)
=0.65745314 / 0.59858752
=1.0983

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 + 245.131) / 683.408) / ((0 + 222.847) / 735.141)
=0.3586891 / 0.30313504
=1.1833

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
=(37.955 - 0 - 127.784) / 683.408
=-0.1314

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 -2.96 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

Mar05Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14
DSRI 0.7520.87571.53080.84051.14111.0960.71021.02861.1788
GMI 0.99781.00760.99140.99381.0010.99861.00120.99960.9951
AQI 2.090619.34610.68860.83270.53920.7580.95520.71651.0192
SGI 1.32491.38031.31231.18261.15571.16141.29181.21941.1825
DEPI 1.21080.87341.10070.94481.01810.95911.15131.73642.905
SGAI 0.91960.98931.03331.07060.96671.01951.01890.94060.995
LVGI 0.91070.72870.86961.02520.98251.00571.02720.8780.9181
TATA -0.22530.212-0.0677-0.1487-0.1358-0.0917-0.1573-0.0983-0.0729
M-score -2.976.23-2.11-3.26-3.02-2.79-3.23-2.70-2.24

CommVault Systems Inc Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 0.8120.8961.02861.09331.03181.23521.17881.15181.02970.9954
GMI 1.00210.99860.99960.99660.99730.99580.99510.99791.00021.0054
AQI 0.79690.81750.71650.74690.74470.74551.01921.16931.16821.2258
SGI 1.23421.23371.21941.21721.21391.2041.18251.16491.13111.0807
DEPI 1.14771.20241.73642.51363.17013.75422.9052.24651.9071.4452
SGAI 0.98430.96530.94060.95440.97550.98510.9951.01021.04811.0983
LVGI 0.84810.86010.8780.91220.88390.88650.91811.07021.07291.1833
TATA -0.1212-0.1-0.0983-0.0993-0.0863-0.0771-0.0729-0.0994-0.1203-0.1314
M-score -3.02-2.83-2.70-2.56-2.48-2.19-2.24-2.47-2.76-2.96
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