Switch to:
GuruFocus has detected 2 Warning Signs with Ansys Inc $ANSS.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
Ansys Inc (NAS:ANSS)
Beneish M-Score
-2.53 (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 -2.53 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: -2.53

-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 * 1.1164+0.528 * 0.9911+0.404 * 0.9655+0.892 * 1.0485+0.115 * 0.9936
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0136+4.679 * -0.0326-0.327 * 1.0854
=-2.53

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Dec16) TTM:Last Year (Dec15) TTM:
Accounts Receivable was $107.2 Mil.
Revenue was 270.628 + 245.862 + 246.069 + 225.906 = $988.5 Mil.
Gross Profit was 231.65 + 210.276 + 209.058 + 190.621 = $841.6 Mil.
Total Current Assets was $1,169.4 Mil.
Total Assets was $2,800.5 Mil.
Property, Plant and Equipment(Net PPE) was $54.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $69.6 Mil.
Selling, General & Admin. Expense(SGA) was $269.5 Mil.
Total Current Liabilities was $539.1 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was 69.983 + 69.557 + 69.628 + 56.468 = $265.6 Mil.
Non Operating Income was 0.047 + -0.159 + 0.305 + -0.108 = $0.1 Mil.
Cash Flow from Operations was 96.234 + 81.989 + 70.029 + 108.575 = $356.8 Mil.
Accounts Receivable was $91.6 Mil.
Revenue was 251.647 + 237.84 + 235.485 + 217.781 = $942.8 Mil.
Gross Profit was 214.655 + 201.259 + 197.7 + 181.893 = $795.5 Mil.
Total Current Assets was $1,076.4 Mil.
Total Assets was $2,729.9 Mil.
Property, Plant and Equipment(Net PPE) was $61.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $77.7 Mil.
Selling, General & Admin. Expense(SGA) was $253.6 Mil.
Total Current Liabilities was $484.1 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)
=(107.192 / 988.465) / (91.579 / 942.753)
=0.10844289 / 0.09713997
=1.1164

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)
=(795.507 / 942.753) / (841.605 / 988.465)
=0.84381275 / 0.8514262
=0.9911

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 - (1169.401 + 54.677) / 2800.526) / (1 - (1076.426 + 61.924) / 2729.904)
=0.5629114 / 0.58300731
=0.9655

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
=988.465 / 942.753
=1.0485

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))
=(77.67 / (77.67 + 61.924)) / (69.587 / (69.587 + 54.677))
=0.55639927 / 0.55999324
=0.9936

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)
=(269.515 / 988.465) / (253.603 / 942.753)
=0.27266013 / 0.26900259
=1.0136

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 + 539.1) / 2800.526) / ((0 + 484.146) / 2729.904)
=0.19249955 / 0.17734909
=1.0854

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
=(265.636 - 0.085 - 356.827) / 2800.526
=-0.0326

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 -2.53 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

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
DSRI 0.88461.03151.00421.01720.92680.98930.93850.9520.89821.1164
GMI 0.98420.98590.99630.98270.99791.00330.99460.99230.99090.9911
AQI 0.89441.17110.92960.90661.05020.92720.91941.00760.99940.9655
SGI 1.46161.24131.08061.12261.19171.15411.07921.08681.00721.0485
DEPI 0.90520.99320.89191.03861.05290.95261.22530.90591.00460.9936
SGAI 0.90620.9440.94171.00650.97580.98570.98861.03561.0221.0136
LVGI 0.80031.08340.87340.85140.97350.91130.88361.04431.04981.0854
TATA -0.0455-0.046-0.0292-0.0063-0.0517-0.0359-0.0318-0.0469-0.0423-0.0326
M-score -2.37-2.41-2.53-2.38-2.58-2.52-2.58-2.70-2.79-2.53

Ansys Inc Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
DSRI 0.96040.9520.90860.94561.06640.89821.00590.95210.90921.1164
GMI 0.99370.99230.99140.99090.99140.99090.99140.99030.98910.9911
AQI 0.95341.00761.04950.97751.02010.99940.96611.00250.97510.9655
SGI 1.08471.08681.0681.05061.03031.00721.01321.0211.02541.0485
DEPI 1.22640.90590.86060.8080.78821.00461.0181.02531.02540.9936
SGAI 0.99751.03561.05061.04051.04341.0221.0070.99710.98111.0136
LVGI 0.96021.04431.04720.98121.04421.04981.0391.08631.09151.0854
TATA -0.0416-0.0469-0.0421-0.0366-0.0356-0.0423-0.0394-0.0383-0.0389-0.0326
M-score -2.62-2.70-2.73-2.69-2.60-2.79-2.68-2.71-2.76-2.53
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK