Medallia Beneish M-Score

Medallia Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski 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 Medallia for today is based on a combination of the following eight different indices:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

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.

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 Property, Plant and Equipment to Total Assets.

4. SGI = Sales Growth Index

Ratio of Revenue 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.

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization 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.

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

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 in leverage

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Medallia has a M-score of -2.78 suggests that the company is unlikely to be a manipulator.

Medallia Beneish M-Score Related Terms

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Medallia Business Description

Industry

Technology » Software NAICS : 511210 SIC : 7379

Comparable Companies

NYSE:FSLY NYSE:ENV NAS:KC NAS:LOGM NAS:STMP NYSE:QTWO NAS:MANT NAS:PS NAS:EVBG NYSE:BILL NYSE:CRM XTER:SAP TSX:SHOP NAS:INTU NYSE:NOW NYSE:UBER NAS:TEAM NAS:ADSK XPAR:DSY NAS:WDAY

Traded in Other Exchanges

N/A

Address

575 Market Street, Suite 1850, San Francisco, CA, USA, 94105

Website

https://www.medallia.com

Medallia Inc is a software company. Its SaaS platform, the Medallia Experience Cloud, captures experience data from signal fields emitted by customers and employees. It utilizes AI technology to analyze structured and unstructured data from these signal fields across human, digital and internet of things, or IoT, interactions. The company provides solutions to various industries including Automotive, Healthcare, Hospitality, Insurance, and Retail among others.

Executives

Stretch Leslie	director, officer: President & CEO	4140 DUBLIN BLVD SUITE 400 DUBLIN CA 94568
Ottosson Mikael J	officer: EVP & Chief Technology Officer	C/O MEDALLIA INC 575 MARKET STREET SUITE 1850 SAN FRANCISCO CA 94105
Oulman Roxanne	officer: CFO and EVP	4140 DUBLIN BOULEVARD SUITE 400 DUBLIN CA 94568
Duan Jimmy C.	officer: EVP & Chief Customer Officer	4140 DUBLIN BLVD SUITE 400 DUBLIN CA 94568
Meresman Stanley J	director	2071 HUNTINGTON LANE LOS ALTOS CA 94024
Hald Borge	director	C/O MEDALLIA INC 575 MARKET STREET SUITE 1850 SAN FRANCISCO CA 94105
Pressman Amy E	director	C/O MEDALLIA INC 575 MARKET STREET SUITE 1850 SAN FRANCISCO CA 94105
Walske Steven	director	C/O PARAMETRIC TECHNOLOGY CORP 128 TECHNOLOGY DR WALTHAM MA 02154
White James D	director	500 W. MONROE ST., 28TH FLOOR ADTALEM GLOBAL EDUCATION CHICAGO IL 60661
Dauerman Mitchell K	director	PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: DAUERMAN MITCHELL K a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Bernshteyn Robert	director	C/O SUCCESSFACTORS, INC., 1500 FASHION ISLAND BLVD., SUITE 300 SAN MATEO CA 94404
Leone Douglas M	director, 10 percent owner	C/O SEQUOIA CAPITAL 2800 SAND HILL RD, SUITE 101 MENLO PARK CA 94025
Kilgore Leslie J	director	100 WINCHESTER CIRCLE LOS GATOS CA 95032
Sc Us Ssf 2013 (ttgp), L.l.c.	10 percent owner	2800 SAND HILL RD, SUITE 101 MENLO PARK CA 94025
Scggf Management, L.p.	10 percent owner	2800 SAND HILL RD, SUITE 101 MENLO PARK CA 94025