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GuruFocus has detected 7 Warning Signs with Calamos Asset Management Inc $CLMS.
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Calamos Asset Management Inc (NAS:CLMS)
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.

Calamos Asset Management Inc has a M-score of -2.99 suggests that the company is not a manipulator.

CLMS' s Beneish M-Score Range Over the Past 10 Years
Min: -4.28   Max: 14.04
Current: -2.99

-4.28
14.04

During the past 13 years, the highest Beneish M-Score of Calamos Asset Management Inc was 14.04. The lowest was -4.28. And the median was -3.34.


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 Calamos Asset Management 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 * 0.8289+0.528 * 1+0.404 * 0.7854+0.892 * 0.8504+0.115 * 1.0883
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0614+4.679 * -0.0617-0.327 * 0.5181
=-2.99

* 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 $3.0 Mil.
Revenue was 48.317 + 48.274 + 48.501 + 55.494 = $200.6 Mil.
Gross Profit was 48.317 + 48.274 + 48.501 + 55.494 = $200.6 Mil.
Total Current Assets was $763.7 Mil.
Total Assets was $822.7 Mil.
Property, Plant and Equipment(Net PPE) was $13.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $3.7 Mil.
Selling, General & Admin. Expense(SGA) was $180.6 Mil.
Total Current Liabilities was $65.4 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was 1.167 + 0.224 + -1.322 + 0.83 = $0.9 Mil.
Non Operating Income was 25.307 + 2.323 + -13.623 + 0.821 = $14.8 Mil.
Cash Flow from Operations was 15.274 + 14.465 + -13.209 + 20.265 = $36.8 Mil.
Accounts Receivable was $4.2 Mil.
Revenue was 57.618 + 60.351 + 57.417 + 60.495 = $235.9 Mil.
Gross Profit was 57.618 + 60.351 + 57.417 + 60.495 = $235.9 Mil.
Total Current Assets was $493.8 Mil.
Total Assets was $546.0 Mil.
Property, Plant and Equipment(Net PPE) was $13.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $4.3 Mil.
Selling, General & Admin. Expense(SGA) was $200.0 Mil.
Total Current Liabilities was $37.8 Mil.
Long-Term Debt was $46.0 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)
=(2.961 / 200.586) / (4.201 / 235.881)
=0.01476175 / 0.01780983
=0.8289

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)
=(235.881 / 235.881) / (200.586 / 200.586)
=1 / 1
=1

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 - (763.738 + 13.339) / 822.716) / (1 - (493.76 + 13.658) / 545.98)
=0.05547358 / 0.07062896
=0.7854

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
=200.586 / 235.881
=0.8504

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))
=(4.265 / (4.265 + 13.658)) / (3.733 / (3.733 + 13.339))
=0.23796239 / 0.21866214
=1.0883

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)
=(180.55 / 200.586) / (200.04 / 235.881)
=0.90011267 / 0.84805474
=1.0614

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 + 65.356) / 822.716) / ((45.955 + 37.761) / 545.98)
=0.07943932 / 0.15333162
=0.5181

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
=(0.899 - 14.828 - 36.795) / 822.716
=-0.0617

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.

Calamos Asset Management 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 local exchange's currency.

Calamos Asset Management Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 11.09580.61620.64580.96022.55040.37310.7140.5481.42
GMI 111.10081.09041.04660.79611111
AQI 0.18090.54832.18740.74990.80050.83190.84850.76270.94141.0535
SGI 1.16190.97590.8270.71951.15721.08060.92720.82380.93250.92
DEPI 2.08763.05190.68420.96371.05651.120.91921.03120.8951.0136
SGAI 1.02024.69060.97550.99870.85981.5841.05261.12211.06411.1487
LVGI 1.12511.92210.66740.92150.9950.82860.87611.03540.72381.034
TATA -0.0448-0.06150.388-0.234-0.2119-0.2764-0.2188-0.1846-0.1467-0.0624
M-score -2.80-3.58-0.56-4.18-3.39-2.48-4.18-3.89-3.60-2.47

Calamos Asset Management Inc Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 1.02662.89430.5480.16790.22530.23451.421.19320.87470.8289
GMI 1111111111
AQI 0.75210.94990.94140.86721.01170.96651.05350.80520.81530.7854
SGI 0.8720.91950.93250.93260.93570.91790.920.9080.8680.8504
DEPI 0.98890.94880.8950.89580.89620.9621.01361.07011.15021.0883
SGAI 1.11361.04871.06411.10891.11581.15631.14871.02931.07441.0614
LVGI 0.89680.67380.72380.63880.7341.09261.0340.88780.81910.5181
TATA -0.1756-0.1932-0.1467-0.1394-0.1126-0.0841-0.0624-0.0255-0.0201-0.0617
M-score -3.48-1.64-3.60-3.92-3.72-3.73-2.47-2.54-2.82-2.99
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