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Ansys Inc (NAS:ANSS)
Beneish M-Score
-2.71 (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 -2.71 suggests that the company is not a manipulator.

ANSS' s Beneish M-Score Range Over the Past 10 Years
Min: -3.12   Max: -0.68
Current: -2.71

-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 -2.61.


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 * 0.9521+0.528 * 0.9903+0.404 * 1.0025+0.892 * 1.021+0.115 * 1.0253
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9971+4.679 * -0.0383-0.327 * 1.0863
=-2.71

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $85.5 Mil.
Revenue was 246.069 + 225.906 + 251.647 + 237.84 = $961.5 Mil.
Gross Profit was 209.058 + 190.621 + 214.655 + 201.259 = $815.6 Mil.
Total Current Assets was $1,109.7 Mil.
Total Assets was $2,747.7 Mil.
Property, Plant and Equipment(Net PPE) was $58.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $73.4 Mil.
Selling, General & Admin. Expense(SGA) was $255.4 Mil.
Total Current Liabilities was $467.7 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was 69.628 + 56.468 + 68.021 + 66.033 = $260.2 Mil.
Non Operating Income was 0.305 + -0.108 + 0.107 + -0.383 = $-0.1 Mil.
Cash Flow from Operations was 70.029 + 108.575 + 109.196 + 77.795 = $365.6 Mil.
Accounts Receivable was $88.0 Mil.
Revenue was 235.485 + 217.781 + 254.375 + 234 = $941.6 Mil.
Gross Profit was 197.7 + 181.893 + 214.606 + 196.806 = $791.0 Mil.
Total Current Assets was $1,110.4 Mil.
Total Assets was $2,746.0 Mil.
Property, Plant and Equipment(Net PPE) was $60.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $81.2 Mil.
Selling, General & Admin. Expense(SGA) was $250.8 Mil.
Total Current Liabilities was $430.3 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)
=(85.506 / 961.462) / (87.96 / 941.641)
=0.08893331 / 0.0934114
=0.9521

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)
=(791.005 / 941.641) / (815.593 / 961.462)
=0.84002821 / 0.84828418
=0.9903

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 - (1109.742 + 58.095) / 2747.661) / (1 - (1110.355 + 60.664) / 2746.03)
=0.57497049 / 0.57355928
=1.0025

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
=961.462 / 941.641
=1.021

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))
=(81.187 / (81.187 + 60.664)) / (73.411 / (73.411 + 58.095))
=0.57233999 / 0.55823308
=1.0253

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)
=(255.358 / 961.462) / (250.819 / 941.641)
=0.26559344 / 0.26636372
=0.9971

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 + 467.71) / 2747.661) / ((0 + 430.31) / 2746.03)
=0.17022114 / 0.15670259
=1.0863

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
=(260.15 - -0.079 - 365.595) / 2747.661
=-0.0383

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 -2.71 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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.16980.88461.03151.00421.01720.92680.98930.93850.9520.8982
GMI 1.08030.98420.98590.99630.98270.99791.00330.99460.99230.9909
AQI 3.94950.89441.17110.92960.90661.05020.92720.91941.00760.9994
SGI 1.66821.46161.24131.08061.12261.19171.15411.07921.08681.0072
DEPI 1.08120.90520.99320.89191.03861.05290.95261.22530.90591.0046
SGAI 1.20350.90620.9440.94171.00650.97580.98570.98861.03561.022
LVGI 1.27870.80031.08340.87340.85140.97350.91130.88361.04431.0498
TATA -0.0836-0.0455-0.046-0.0292-0.0063-0.0517-0.0359-0.0318-0.0469-0.0423
M-score -1.00-2.37-2.41-2.53-2.38-2.58-2.52-2.58-2.70-2.79

Ansys Inc Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 0.95810.97520.96040.9520.90860.94561.06640.89821.00590.9521
GMI 0.9930.99390.99370.99230.99140.99090.99140.99090.99140.9903
AQI 0.90790.94240.95341.00761.04950.97751.02010.99940.96611.0025
SGI 1.08441.07961.08471.08681.0681.05061.03031.00721.01321.021
DEPI 1.28431.2981.22640.90590.86060.8080.78821.00461.0181.0253
SGAI 0.97710.9830.99751.03561.05061.04051.04341.0221.0070.9971
LVGI 0.98070.95250.96021.04431.04720.98121.04421.04981.0391.0863
TATA -0.042-0.0368-0.0416-0.0469-0.0421-0.0366-0.0356-0.0423-0.0394-0.0383
M-score -2.64-2.58-2.62-2.70-2.73-2.69-2.60-2.79-2.68-2.71
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