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GuruFocus has detected 4 Warning Signs with CommVault Systems Inc $CVLT.
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CommVault Systems Inc (NAS:CVLT)
Beneish M-Score
-2.87 (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 -2.87 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: -2.87

-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 -2.87.


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 * 1.0708+0.528 * 0.9908+0.404 * 1.0441+0.892 * 1.0931+0.115 * 1.0589
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0026+4.679 * -0.1227-0.327 * 0.9592
=-2.87

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Mar17) TTM:Last Year (Mar16) TTM:
Accounts Receivable was $132.8 Mil.
Revenue was 172.931 + 165.841 + 159.333 + 152.413 = $650.5 Mil.
Gross Profit was 151.557 + 144.675 + 137.676 + 131.418 = $565.3 Mil.
Total Current Assets was $598.7 Mil.
Total Assets was $803.0 Mil.
Property, Plant and Equipment(Net PPE) was $132.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $10.2 Mil.
Selling, General & Admin. Expense(SGA) was $472.9 Mil.
Total Current Liabilities was $285.6 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was 3.188 + -0.042 + -0.562 + -2.044 = $0.5 Mil.
Non Operating Income was -0.414 + -0.3 + -0.158 + -0.086 = $-1.0 Mil.
Cash Flow from Operations was 28.985 + 26.768 + 20.239 + 24.047 = $100.0 Mil.
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.



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)
=(132.761 / 650.518) / (113.429 / 595.126)
=0.20408505 / 0.19059661
=1.0708

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)
=(512.414 / 595.126) / (565.326 / 650.518)
=0.86101767 / 0.86903975
=0.9908

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 - (598.736 + 132.319) / 802.967) / (1 - (517.377 + 135.904) / 714.573)
=0.08955785 / 0.0857743
=1.0441

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
=650.518 / 595.126
=1.0931

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))
=(11.179 / (11.179 + 135.904)) / (10.232 / (10.232 + 132.319))
=0.0760047 / 0.07177782
=1.0589

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)
=(472.919 / 650.518) / (431.517 / 595.126)
=0.72698834 / 0.72508511
=1.0026

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 + 285.595) / 802.967) / ((0 + 264.964) / 714.573)
=0.35567464 / 0.37080046
=0.9592

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
=(0.54 - -0.958 - 100.039) / 802.967
=-0.1227

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 -2.87 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

Mar08Mar09Mar10Mar11Mar12Mar13Mar14Mar15Mar16Mar17
DSRI 1.53080.84051.14111.0960.71021.02861.17880.95850.98371.0708
GMI 0.99140.99381.0010.99861.00120.99960.99511.00971.00450.9908
AQI 0.68860.83270.53920.7580.95520.71651.01921.40911.2791.0441
SGI 1.31231.18261.15571.16141.29181.21941.18251.03620.97961.0931
DEPI 1.10070.94481.01810.95911.15131.73642.9051.07680.79741.0589
SGAI 1.03331.07060.96671.01951.01890.94060.9951.14041.06391.0026
LVGI 0.86961.02520.98251.00571.02720.8780.91811.12141.02570.9592
TATA -0.0677-0.1487-0.1358-0.0917-0.1573-0.0983-0.0729-0.1376-0.1178-0.1227
M-score -2.11-3.26-3.02-2.79-3.23-2.70-2.24-3.01-2.99-2.87

CommVault Systems Inc Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
DSRI 0.99540.95850.93920.89871.04970.98371.05551.13890.93031.0708
GMI 1.00541.00971.01091.01331.01081.00450.9990.99160.99020.9908
AQI 1.22581.40910.84520.96111.66131.2791.90021.76271.06641.0441
SGI 1.08071.03620.98250.95070.95550.97961.02421.07431.08671.0931
DEPI 1.44521.07680.83880.68530.72120.79740.91871.03871.0651.0589
SGAI 1.09831.14041.17481.16031.11161.06391.01270.98060.98261.0026
LVGI 1.18331.12140.97051.03870.97381.02571.05370.98770.99370.9592
TATA -0.1314-0.1376-0.1375-0.1317-0.1171-0.1178-0.1191-0.1159-0.1357-0.1227
M-score -2.96-3.01-3.29-3.32-2.79-2.99-2.63-2.51-3.07-2.87
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