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GuruFocus has detected 5 Warning Signs with CommVault Systems Inc $CVLT.
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CommVault Systems Inc (NAS:CVLT)
Beneish M-Score
-2.51 (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 -2.51 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: -2.51

-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 * 1.1389+0.528 * 0.9916+0.404 * 1.7627+0.892 * 1.0743+0.115 * 1.0387
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9806+4.679 * -0.1159-0.327 * 0.9877
=-2.51

* 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 $105.7 Mil.
Revenue was 159.333 + 152.413 + 159.565 + 155.696 = $627.0 Mil.
Gross Profit was 137.676 + 131.418 + 138.768 + 135.267 = $543.1 Mil.
Total Current Assets was $566.0 Mil.
Total Assets was $766.5 Mil.
Property, Plant and Equipment(Net PPE) was $133.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $10.5 Mil.
Selling, General & Admin. Expense(SGA) was $448.9 Mil.
Total Current Liabilities was $264.9 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was -0.562 + -2.044 + 5.794 + 4.878 = $8.1 Mil.
Non Operating Income was -0.158 + -0.086 + -0.083 + 0 = $-0.3 Mil.
Cash Flow from Operations was 20.239 + 24.047 + 37.179 + 15.765 = $97.2 Mil.
Accounts Receivable was $86.4 Mil.
Revenue was 140.742 + 139.123 + 150.735 + 153.021 = $583.6 Mil.
Gross Profit was 119.803 + 118.576 + 129.821 + 133.08 = $501.3 Mil.
Total Current Assets was $524.0 Mil.
Total Assets was $696.9 Mil.
Property, Plant and Equipment(Net PPE) was $138.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $11.3 Mil.
Selling, General & Admin. Expense(SGA) was $426.1 Mil.
Total Current Liabilities was $243.8 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)
=(105.676 / 627.007) / (86.367 / 583.621)
=0.16854038 / 0.14798474
=1.1389

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)
=(501.28 / 583.621) / (543.129 / 627.007)
=0.85891358 / 0.86622478
=0.9916

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 - (565.974 + 133.051) / 766.475) / (1 - (524.01 + 138.064) / 696.864)
=0.08800026 / 0.04992366
=1.7627

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
=627.007 / 583.621
=1.0743

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))
=(11.316 / (11.316 + 138.064)) / (10.467 / (10.467 + 133.051))
=0.07575311 / 0.07293162
=1.0387

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)
=(448.909 / 627.007) / (426.127 / 583.621)
=0.71595532 / 0.73014336
=0.9806

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 + 264.867) / 766.475) / ((0 + 243.8) / 696.864)
=0.34556509 / 0.34985306
=0.9877

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
=(8.066 - -0.327 - 97.23) / 766.475
=-0.1159

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 -2.51 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.

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

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 1.15181.02970.99540.95850.93920.89871.04970.98371.05551.1389
GMI 0.99791.00021.00541.00971.01091.01331.01081.00450.9990.9916
AQI 1.16931.16821.22581.40910.84520.96111.66131.2791.90021.7627
SGI 1.16491.13111.08071.03620.98250.95070.95550.97961.02421.0743
DEPI 2.24651.9071.44521.07680.83880.68530.72120.79740.91871.0387
SGAI 1.01021.04811.09831.14041.17481.16031.11161.06391.01270.9806
LVGI 1.07021.07291.18331.12140.97051.03870.97381.02571.05370.9877
TATA -0.0994-0.1203-0.1314-0.1376-0.1375-0.1317-0.1171-0.1178-0.1191-0.1159
M-score -2.47-2.76-2.96-3.01-3.29-3.32-2.79-2.99-2.63-2.51
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