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Ansys Inc (NAS:ANSS)
Beneish M-Score
-2.60 (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 -2.60 suggests that the company is not a manipulator.

ANSS' s Beneish M-Score Range Over the Past 10 Years
Min: -3.13   Max: -0.68
Current: -2.6

-3.13
-0.68

During the past 13 years, the highest Beneish M-Score of Ansys Inc was -0.68. The lowest was -3.13. 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 * 1.0664+0.528 * 0.9914+0.404 * 1.0201+0.892 * 1.0303+0.115 * 0.7882
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0434+4.679 * -0.0356-0.327 * 1.0442
=-2.60

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
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.
Net Income was 66.033 + 62.335 + 56.132 + 69.633 = $254.1 Mil.
Non Operating Income was -0.383 + 0.091 + 0.767 + -0.762 = $-0.3 Mil.
Cash Flow from Operations was 77.795 + 66.412 + 114.12 + 92.273 = $350.6 Mil.
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.



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)
=(91.47 / 945.481) / (83.253 / 917.666)
=0.09674441 / 0.09072255
=1.0664

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)
=(197.7 / 917.666) / (201.259 / 945.481)
=0.83411612 / 0.84132627
=0.9914

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 - (1045.264 + 58.59) / 2701.566) / (1 - (1075.02 + 97.108) / 2789.038)
=0.59140217 / 0.57973753
=1.0201

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
=945.481 / 917.666
=1.0303

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))
=(80.661 / (80.661 + 97.108)) / (79.483 / (79.483 + 58.59))
=0.45374053 / 0.57565925
=0.7882

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)
=(254.014 / 945.481) / (236.289 / 917.666)
=0.26866114 / 0.25748911
=1.0434

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 + 411.957) / 2701.566) / ((0 + 407.28) / 2789.038)
=0.15248822 / 0.14602885
=1.0442

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
=(254.133 - -0.287 - 350.6) / 2701.566
=-0.0356

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 -2.60 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

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
DSRI 0.9070.94080.93850.95810.97520.96040.9520.90860.94561.0664
GMI 0.99410.99460.99460.9930.99390.99370.99230.99140.99090.9914
AQI 0.96570.92530.91940.90790.94240.95340.99561.04950.97751.0201
SGI 1.10481.09091.07921.08441.07961.08471.08681.0681.05061.0303
DEPI 1.00251.11021.22531.28431.2981.22640.90590.86060.8080.7882
SGAI 1.0091.00090.98860.97710.9830.99751.03561.05061.04051.0434
LVGI 0.85910.85860.88360.98070.95250.96021.03631.04720.98121.0442
TATA -0.0414-0.0347-0.0318-0.042-0.0368-0.0416-0.0465-0.0421-0.0366-0.0356
M-score -2.64-2.59-2.58-2.64-2.58-2.62-2.70-2.73-2.69-2.60
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