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Ansys Inc (NAS:ANSS)
Beneish M-Score
-2.76 (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 -2.76 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: -2.76

-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 -2.62.


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 * 0.9092+0.528 * 0.9891+0.404 * 0.9751+0.892 * 1.0254+0.115 * 1.0254
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9811+4.679 * -0.0389-0.327 * 1.0915
=-2.76

* 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 $85.3 Mil.
Revenue was 245.862 + 246.069 + 225.906 + 251.647 = $969.5 Mil.
Gross Profit was 210.276 + 209.058 + 190.621 + 214.655 = $824.6 Mil.
Total Current Assets was $1,100.2 Mil.
Total Assets was $2,730.4 Mil.
Property, Plant and Equipment(Net PPE) was $55.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $71.2 Mil.
Selling, General & Admin. Expense(SGA) was $255.5 Mil.
Total Current Liabilities was $454.4 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was 69.557 + 69.628 + 56.468 + 68.021 = $263.7 Mil.
Non Operating Income was -0.159 + 0.305 + -0.108 + 0.107 = $0.1 Mil.
Cash Flow from Operations was 81.989 + 70.029 + 108.575 + 109.196 = $369.8 Mil.
Accounts Receivable was $91.5 Mil.
Revenue was 237.84 + 235.485 + 217.781 + 254.375 = $945.5 Mil.
Gross Profit was 201.259 + 197.7 + 181.893 + 214.606 = $795.5 Mil.
Total Current Assets was $1,045.3 Mil.
Total Assets was $2,701.6 Mil.
Property, Plant and Equipment(Net PPE) was $58.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $79.5 Mil.
Selling, General & Admin. Expense(SGA) was $254.0 Mil.
Total Current Liabilities was $412.0 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)
=(85.273 / 969.484) / (91.47 / 945.481)
=0.0879571 / 0.09674441
=0.9092

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)
=(795.458 / 945.481) / (824.61 / 969.484)
=0.84132627 / 0.85056587
=0.9891

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 - (1100.151 + 55.628) / 2730.357) / (1 - (1045.264 + 58.59) / 2701.566)
=0.57669308 / 0.59140217
=0.9751

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
=969.484 / 945.481
=1.0254

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))
=(79.483 / (79.483 + 58.59)) / (71.208 / (71.208 + 55.628))
=0.57565925 / 0.56141789
=1.0254

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)
=(255.528 / 969.484) / (254.014 / 945.481)
=0.26357114 / 0.26866114
=0.9811

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 + 454.437) / 2730.357) / ((0 + 411.957) / 2701.566)
=0.16643867 / 0.15248822
=1.0915

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
=(263.674 - 0.145 - 369.789) / 2730.357
=-0.0389

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 -2.76 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.

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

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 0.97520.96040.9520.90860.94561.06640.89821.00590.95210.9092
GMI 0.99390.99370.99230.99140.99090.99140.99090.99140.99030.9891
AQI 0.94240.95341.00761.04950.97751.02010.99940.96611.00250.9751
SGI 1.07961.08471.08681.0681.05061.03031.00721.01321.0211.0254
DEPI 1.2981.22640.90590.86060.8080.78821.00461.0181.02531.0254
SGAI 0.9830.99751.03561.05061.04051.04341.0221.0070.99710.9811
LVGI 0.95250.96021.04431.04720.98121.04421.04981.0391.08631.0915
TATA -0.0368-0.0416-0.0469-0.0421-0.0366-0.0356-0.0423-0.0394-0.0383-0.0389
M-score -2.58-2.62-2.70-2.73-2.69-2.60-2.79-2.68-2.71-2.76
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