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Ansys Inc (NAS:ANSS)
Beneish M-Score
-2.77 (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 -2.77 suggests that the company is not a manipulator.

ANSS' s 10-Year Beneish M-Score Range
Min: -3.05   Max: 1.01
Current: -2.77

-3.05
1.01

During the past 13 years, the highest Beneish M-Score of Ansys Inc was 1.01. The lowest was -3.05. And the median was -2.49.


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 * 0.8132+0.528 * 0.993+0.404 * 0.9079+0.892 * 1.0844+0.115 * 1.2843
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9771+4.679 * -0.042-0.327 * 0.9807
=-2.77

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

This Year (Mar14) TTM:Last Year (Mar13) TTM:
Accounts Receivable was $232.9 Mil.
Revenue was 215.271 + 236.02 + 212.658 + 214.85 = $878.8 Mil.
Gross Profit was 177.526 + 197.411 + 177.489 + 178.17 = $730.6 Mil.
Total Current Assets was $1,132.3 Mil.
Total Assets was $2,793.2 Mil.
Property, Plant and Equipment(Net PPE) was $83.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $79.5 Mil.
Selling, General & Admin. Expense(SGA) was $222.4 Mil.
Total Current Liabilities was $441.7 Mil.
Long-Term Debt was $0.1 Mil.
Net Income was 56.542 + 75.929 + 62.43 + 55.945 = $250.8 Mil.
Non Operating Income was -0.198 + -0.195 + -0.357 + -0.173 = $-0.9 Mil.
Cash Flow from Operations was 131.639 + 84.961 + 65.44 + 87.148 = $369.2 Mil.
Accounts Receivable was $264.1 Mil.
Revenue was 197.732 + 220.748 + 196.909 + 195.016 = $810.4 Mil.
Gross Profit was 161.498 + 184.067 + 163.153 + 160.279 = $669.0 Mil.
Total Current Assets was $931.6 Mil.
Total Assets was $2,599.7 Mil.
Property, Plant and Equipment(Net PPE) was $50.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $85.4 Mil.
Selling, General & Admin. Expense(SGA) was $209.9 Mil.
Total Current Liabilities was $419.3 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)
=(232.901 / 878.799) / (264.097 / 810.405)
=0.26502192 / 0.32588274
=0.8132

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)
=(197.411 / 810.405) / (177.526 / 878.799)
=0.82550947 / 0.83135734
=0.993

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 - (1132.262 + 83.349) / 2793.229) / (1 - (931.608 + 50.822) / 2599.7)
=0.56480081 / 0.6220987
=0.9079

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
=878.799 / 810.405
=1.0844

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))
=(85.393 / (85.393 + 50.822)) / (79.476 / (79.476 + 83.349))
=0.62689865 / 0.48810686
=1.2843

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)
=(222.444 / 878.799) / (209.942 / 810.405)
=0.25312273 / 0.25905813
=0.9771

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)
=((0.069 + 441.747) / 2793.229) / ((0 + 419.306) / 2599.7)
=0.15817393 / 0.16129015
=0.9807

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
=(250.846 - -0.923 - 369.188) / 2793.229
=-0.042

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 -2.77 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 1.78670.88741.22710.87551.09440.9051.29730.92871.09350.8843
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 -2.12-2.71-0.95-2.38-2.35-2.62-2.12-2.58-2.43-2.65

Ansys Inc Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
DSRI 0.92870.9831.1121.06361.09350.9180.78490.84110.88430.8132
GMI 0.99791.00691.00881.00621.00330.99770.99410.99460.99460.993
AQI 1.05021.04621.07270.91780.92720.95510.96570.92530.91940.9079
SGI 1.19171.19351.19911.17531.15411.12751.10481.09091.07921.0844
DEPI 1.05291.01991.01460.98360.95260.96581.00251.11021.22531.2843
SGAI 0.97580.96740.98340.99670.98571.00581.0091.00090.98860.9771
LVGI 0.97350.93530.96260.92160.91130.83950.85910.85860.920.9807
TATA -0.0517-0.0485-0.045-0.0433-0.0359-0.0385-0.0414-0.0347-0.0318-0.042
M-score -2.58-2.50-2.36-2.47-2.43-2.59-2.75-2.68-2.65-2.77
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