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Ansys Inc (NAS:ANSS)
Beneish M-Score
-2.62 (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.

Ansys Inc has a M-score of -2.62 suggests that the company is not a manipulator.

ANSS' s 10-Year Beneish M-Score Range
Min: -3.12   Max: -0.68
Current: -2.62

-3.12
-0.68

During the past 13 years, the highest Beneish M-Score of Ansys Inc was -0.68. The lowest was -3.12. And the median was -2.58.


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 Ansys 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 * 0.9604+0.528 * 0.9937+0.404 * 0.9534+0.892 * 1.0847+0.115 * 1.2264
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9975+4.679 * -0.0416-0.327 * 0.9602
=-2.62

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $83.3 Mil.
Revenue was 234 + 232.375 + 215.271 + 236.02 = $917.7 Mil.
Gross Profit was 196.806 + 193.697 + 177.526 + 197.411 = $765.4 Mil.
Total Current Assets was $1,075.0 Mil.
Total Assets was $2,789.0 Mil.
Property, Plant and Equipment(Net PPE) was $97.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $80.7 Mil.
Selling, General & Admin. Expense(SGA) was $236.3 Mil.
Total Current Liabilities was $407.3 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was 65.479 + 63.036 + 56.542 + 75.929 = $261.0 Mil.
Non Operating Income was -0.395 + -0.179 + -0.198 + -0.195 = $-1.0 Mil.
Cash Flow from Operations was 81.562 + 79.833 + 131.639 + 84.961 = $378.0 Mil.
Accounts Receivable was $79.9 Mil.
Revenue was 212.658 + 214.85 + 197.732 + 220.748 = $846.0 Mil.
Gross Profit was 177.489 + 178.17 + 161.498 + 184.067 = $701.2 Mil.
Total Current Assets was $960.0 Mil.
Total Assets was $2,618.3 Mil.
Property, Plant and Equipment(Net PPE) was $66.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $83.0 Mil.
Selling, General & Admin. Expense(SGA) was $218.4 Mil.
Total Current Liabilities was $387.0 Mil.
Long-Term Debt was $11.2 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)
=(83.253 / 917.666) / (79.912 / 845.988)
=0.09072255 / 0.09445997
=0.9604

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)
=(193.697 / 845.988) / (196.806 / 917.666)
=0.82888173 / 0.83411612
=0.9937

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 - (1075.02 + 97.108) / 2789.038) / (1 - (959.956 + 66.174) / 2618.279)
=0.57973753 / 0.60808989
=0.9534

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
=917.666 / 845.988
=1.0847

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))
=(83.016 / (83.016 + 66.174)) / (80.661 / (80.661 + 97.108))
=0.5564448 / 0.45374053
=1.2264

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)
=(236.289 / 917.666) / (218.374 / 845.988)
=0.25748911 / 0.25812896
=0.9975

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 + 407.28) / 2789.038) / ((11.222 + 386.956) / 2618.279)
=0.14602885 / 0.15207623
=0.9602

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
=(260.986 - -0.967 - 377.995) / 2789.038
=-0.0416

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.

Ansys Inc has a M-score of -2.62 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.

Ansys Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 0.79180.86681.16980.88461.03151.00421.01720.92680.98930.9385
GMI 0.81851.16791.08030.98420.98590.99630.98270.99791.00330.9946
AQI 0.71940.89183.94950.89441.17110.92960.90661.05020.92720.9194
SGI 1.1851.17461.66821.46161.24131.08061.12261.19171.15411.0792
DEPI 0.95281.03071.08120.90520.99320.89191.03861.05290.95261.2253
SGAI 0.91160.92531.20350.90620.9440.94171.00650.97580.98570.9886
LVGI 0.90410.93471.27870.80031.08340.87340.85140.97350.91130.92
TATA -0.0781-0.0782-0.0836-0.0455-0.046-0.0292-0.0063-0.0517-0.0359-0.0318
M-score -3.04-2.73-1.00-2.37-2.41-2.53-2.38-2.58-2.52-2.60

Ansys Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 1.01731.01790.98930.89570.9070.94080.93850.95810.97520.9604
GMI 1.00881.00621.00330.99770.99410.99460.99460.9930.99390.9937
AQI 1.07270.91780.92720.95510.96570.92530.91940.90790.94240.9534
SGI 1.19911.17531.15411.12751.10481.09091.07921.08441.07961.0847
DEPI 1.01460.98360.95260.96581.00251.11021.22531.28431.2981.2264
SGAI 0.98340.99670.98571.00581.0091.00090.98860.97710.9830.9975
LVGI 0.96260.92160.91130.83950.85910.85860.920.98070.95250.9602
TATA -0.045-0.0433-0.0359-0.0385-0.0414-0.0347-0.0318-0.042-0.0368-0.0416
M-score -2.45-2.52-2.52-2.61-2.64-2.59-2.60-2.64-2.58-2.62
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