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Ansys Inc (NAS:ANSS)
Beneish M-Score
-2.73 (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 -2.73 suggests that the company is not a manipulator.

ANSS' s 10-Year Beneish M-Score Range
Min: -3.12   Max: -0.68
Current: -2.73

-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 -2.58.


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 * 0.9086+0.528 * 0.9914+0.404 * 1.0495+0.892 * 1.068+0.115 * 0.8606
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0506+4.679 * -0.0421-0.327 * 1.0472
=-2.73

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
Accounts Receivable was $80.9 Mil.
Revenue was 217.781 + 254.375 + 234 + 232.375 = $938.5 Mil.
Gross Profit was 181.893 + 214.606 + 196.806 + 193.697 = $787.0 Mil.
Total Current Assets was $1,029.3 Mil.
Total Assets was $2,681.1 Mil.
Property, Plant and Equipment(Net PPE) was $62.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $81.9 Mil.
Selling, General & Admin. Expense(SGA) was $249.6 Mil.
Total Current Liabilities was $444.1 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was 56.132 + 69.633 + 65.479 + 63.036 = $254.3 Mil.
Non Operating Income was 0.767 + -0.762 + -0.395 + -0.179 = $-0.6 Mil.
Cash Flow from Operations was 114.12 + 92.273 + 81.562 + 79.833 = $367.8 Mil.
Accounts Receivable was $83.4 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.



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)
=(80.949 / 938.531) / (83.418 / 878.799)
=0.08625075 / 0.09492273
=0.9086

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)
=(214.606 / 878.799) / (181.893 / 938.531)
=0.83135734 / 0.83854662
=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 - (1029.288 + 62.496) / 2681.094) / (1 - (1132.262 + 83.349) / 2793.229)
=0.59278414 / 0.56480081
=1.0495

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
=938.531 / 878.799
=1.068

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))
=(79.476 / (79.476 + 83.349)) / (81.894 / (81.894 + 62.496))
=0.48810686 / 0.56717224
=0.8606

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)
=(249.575 / 938.531) / (222.444 / 878.799)
=0.26592089 / 0.25312273
=1.0506

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 + 444.111) / 2681.094) / ((0.069 + 441.747) / 2793.229)
=0.16564544 / 0.15817393
=1.0472

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
=(254.28 - -0.569 - 367.788) / 2681.094
=-0.0421

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 -2.73 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

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 0.98930.89570.9070.94080.93850.95810.97520.96040.9520.9086
GMI 1.00330.99770.99410.99460.99460.9930.99390.99370.99230.9914
AQI 0.92720.95510.96570.92530.91940.90790.94240.95340.99561.0495
SGI 1.15411.12751.10481.09091.07921.08441.07961.08471.08681.068
DEPI 0.95260.96581.00251.11021.22531.28431.2981.22640.90590.8606
SGAI 0.98571.00581.0091.00090.98860.97710.9830.99751.03561.0506
LVGI 0.91130.83950.85910.85860.88360.98070.95250.96021.03631.0472
TATA -0.0359-0.0385-0.0414-0.0347-0.0318-0.042-0.0368-0.0416-0.0465-0.0421
M-score -2.52-2.61-2.64-2.59-2.58-2.64-2.58-2.62-2.70-2.73
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