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Ansys, Inc. (NAS:ANSS)
Beneish M-Score
-2.65 (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 -2.65 suggests that the company is not a manipulator.

ANSS' s 10-Year Beneish M-Score Range
Min: -3.05   Max: -0.62
Current: -2.65

-3.05
-0.62

During the past 13 years, the highest Beneish M-Score of Ansys, Inc. was -0.62. The lowest was -3.05. And the median was -2.43.


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 * 0.8843+0.528 * 0.9946+0.404 * 0.9194+0.892 * 1.0792+0.115 * 1.2253
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9886+4.679 * -0.0318-0.327 * 0.92
=-2.65

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

This Year (Dec13) TTM:Last Year (Dec12) TTM:
Accounts Receivable was $298.6 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 $18.1 Mil.
Net Income was 75.929 + 62.43 + 55.945 + 51.023 = $245.3 Mil.
Non Operating Income was -0.195 + -0.357 + -0.173 + -0.321 = $-1.0 Mil.
Cash Flow from Operations was 84.961 + 65.44 + 87.148 + 95.434 = $333.0 Mil.
Accounts Receivable was $312.9 Mil.
Revenue was 220.748 + 196.909 + 195.016 + 185.345 = $798.0 Mil.
Gross Profit was 184.067 + 163.153 + 160.279 + 151.003 = $658.5 Mil.
Total Current Assets was $913.4 Mil.
Total Assets was $2,607.4 Mil.
Property, Plant and Equipment(Net PPE) was $52.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $85.4 Mil.
Selling, General & Admin. Expense(SGA) was $205.2 Mil.
Total Current Liabilities was $477.4 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)
=(298.579 / 861.26) / (312.866 / 798.018)
=0.34667696 / 0.39205381
=0.8843

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)
=(177.489 / 798.018) / (197.411 / 861.26)
=0.82517186 / 0.82967745
=0.9946

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 - (1067.596 + 78.674) / 2722.382) / (1 - (913.359 + 52.253) / 2607.417)
=0.57894594 / 0.62966721
=0.9194

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
=861.26 / 798.018
=1.0792

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))
=(85.422 / (85.422 + 52.253)) / (80.701 / (80.701 + 78.674))
=0.62046123 / 0.50635922
=1.2253

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)
=(218.907 / 861.26) / (205.178 / 798.018)
=0.25417063 / 0.25710949
=0.9886

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)
=((18.136 + 440.431) / 2722.382) / ((0 + 477.387) / 2607.417)
=0.1684433 / 0.18308809
=0.92

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
=(245.327 - -1.046 - 332.983) / 2722.382
=-0.0318

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 -2.65 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

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DSRI 0.99780.92870.9831.1121.06361.09350.9180.78490.84110.8843
GMI 0.99230.99791.00691.00881.00621.00330.99770.99410.99460.9946
AQI 1.08561.05021.04621.07270.91780.92720.95510.96570.92530.9194
SGI 1.16981.19171.19351.19911.17531.15411.12751.10481.09091.0792
DEPI 1.05291.05291.01991.01460.98360.95260.96581.00251.11021.2253
SGAI 0.99070.97580.96740.98340.99670.98571.00581.0091.00090.9886
LVGI 0.82450.97350.93530.96260.92160.91130.83950.85910.85860.92
TATA -0.0096-0.0517-0.0485-0.045-0.0433-0.0359-0.0385-0.0414-0.0347-0.0318
M-score -2.28-2.58-2.50-2.36-2.47-2.43-2.59-2.75-2.68-2.65
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