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Ansys Inc (NAS:ANSS)
Beneish M-Score
-2.70 (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 -2.70 suggests that the company is not a manipulator.

ANSS' s 10-Year Beneish M-Score Range
Min: -3.12   Max: -0.68
Current: -2.7

-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 -2.56.


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 * 0.952+0.528 * 0.9923+0.404 * 0.9956+0.892 * 1.0868+0.115 * 0.9059
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0356+4.679 * -0.0465-0.327 * 1.0363
=-2.70

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
Accounts Receivable was $101.2 Mil.
Revenue was 254.375 + 234 + 232.375 + 215.271 = $936.0 Mil.
Gross Profit was 214.606 + 196.806 + 193.697 + 177.526 = $782.6 Mil.
Total Current Assets was $1,110.5 Mil.
Total Assets was $2,774.1 Mil.
Property, Plant and Equipment(Net PPE) was $64.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $81.9 Mil.
Selling, General & Admin. Expense(SGA) was $246.4 Mil.
Total Current Liabilities was $465.1 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was 69.633 + 65.479 + 63.036 + 56.542 = $254.7 Mil.
Non Operating Income was -0.762 + -0.395 + -0.179 + -0.198 = $-1.5 Mil.
Cash Flow from Operations was 92.273 + 81.562 + 79.833 + 131.639 = $385.3 Mil.
Accounts Receivable was $97.8 Mil.
Revenue was 236.02 + 212.658 + 214.85 + 197.732 = $861.3 Mil.
Gross Profit was 197.411 + 177.489 + 178.17 + 161.498 = $714.6 Mil.
Total Current Assets was $1,067.6 Mil.
Total Assets was $2,722.4 Mil.
Property, Plant and Equipment(Net PPE) was $78.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $80.7 Mil.
Selling, General & Admin. Expense(SGA) was $218.9 Mil.
Total Current Liabilities was $440.4 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)
=(101.229 / 936.021) / (97.845 / 861.26)
=0.10814821 / 0.11360681
=0.952

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)
=(196.806 / 861.26) / (214.606 / 936.021)
=0.82967745 / 0.83612974
=0.9923

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 - (1110.493 + 64.643) / 2774.103) / (1 - (1067.596 + 78.674) / 2722.382)
=0.57639064 / 0.57894594
=0.9956

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
=936.021 / 861.26
=1.0868

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))
=(80.701 / (80.701 + 78.674)) / (81.924 / (81.924 + 64.643))
=0.50635922 / 0.55895256
=0.9059

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)
=(246.376 / 936.021) / (218.907 / 861.26)
=0.26321632 / 0.25417063
=1.0356

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 + 465.099) / 2774.103) / ((0 + 440.431) / 2722.382)
=0.16765744 / 0.16178148
=1.0363

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
=(254.69 - -1.534 - 385.307) / 2774.103
=-0.0465

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 -2.70 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 0.86681.16980.88461.03151.00421.01720.92680.98930.93850.952
GMI 1.16791.08030.98420.98590.99630.98270.99791.00330.99460.9923
AQI 0.89183.94950.89441.17110.92960.90661.05020.92720.91940.9956
SGI 1.17461.66821.46161.24131.08061.12261.19171.15411.07921.0868
DEPI 1.03071.08120.90520.99320.89191.03861.05290.95261.22530.9059
SGAI 0.92531.20350.90620.9440.94171.00650.97580.98570.98861.0356
LVGI 0.93471.27870.80031.08340.87340.85140.97350.91130.88361.0363
TATA -0.0782-0.0836-0.0455-0.046-0.0292-0.0063-0.0517-0.0359-0.0318-0.0465
M-score -2.73-1.00-2.37-2.41-2.53-2.38-2.58-2.52-2.58-2.70

Ansys Inc Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 1.01790.98930.89570.9070.94080.93850.95810.97520.96040.952
GMI 1.00621.00330.99770.99410.99460.99460.9930.99390.99370.9923
AQI 0.91780.92720.95510.96570.92530.91940.90790.94240.95340.9956
SGI 1.17531.15411.12751.10481.09091.07921.08441.07961.08471.0868
DEPI 0.98360.95260.96581.00251.11021.22531.28431.2981.22640.9059
SGAI 0.99670.98571.00581.0091.00090.98860.97710.9830.99751.0356
LVGI 0.92160.91130.83950.85910.85860.88360.98070.95250.96021.0363
TATA -0.0433-0.0359-0.0385-0.0414-0.0347-0.0318-0.042-0.0368-0.0416-0.0465
M-score -2.52-2.52-2.61-2.64-2.59-2.58-2.64-2.58-2.62-2.70
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