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Aspen Technology Inc (NAS:AZPN)
Beneish M-Score
-3.94 (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.

Aspen Technology Inc has a M-score of -3.94 suggests that the company is not a manipulator.

AZPN' s 10-Year Beneish M-Score Range
Min: -4.93   Max: -1.92
Current: -3.94

-4.93
-1.92

During the past 13 years, the highest Beneish M-Score of Aspen Technology Inc was -1.92. The lowest was -4.93. And the median was -3.20.


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 Aspen Technology 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 * 0.7087+0.528 * 0.9752+0.404 * 0.6165+0.892 * 1.125+0.115 * 1.5894
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8939+4.679 * -0.2308-0.327 * 1.4391
=-3.94

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

This Year (Jun15) TTM:Last Year (Jun14) TTM:
Accounts Receivable was $30.7 Mil.
Revenue was 114.186 + 111.299 + 107.79 + 107.126 = $440.4 Mil.
Gross Profit was 101.565 + 98.99 + 95.525 + 94.745 = $390.8 Mil.
Total Current Assets was $263.6 Mil.
Total Assets was $315.4 Mil.
Property, Plant and Equipment(Net PPE) was $18.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $6.2 Mil.
Selling, General & Admin. Expense(SGA) was $141.4 Mil.
Total Current Liabilities was $296.5 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was 30.806 + 28.17 + 30.464 + 28.967 = $118.4 Mil.
Non Operating Income was -1.132 + 0.414 + -0.248 + 0.188 = $-0.8 Mil.
Cash Flow from Operations was 53.568 + 64.642 + 33.832 + 39.943 = $192.0 Mil.
Accounts Receivable was $38.5 Mil.
Revenue was 101.532 + 103.587 + 98.769 + 87.565 = $391.5 Mil.
Gross Profit was 88.653 + 88.299 + 86.326 + 75.487 = $338.8 Mil.
Total Current Assets was $329.7 Mil.
Total Assets was $408.0 Mil.
Property, Plant and Equipment(Net PPE) was $7.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $5.2 Mil.
Selling, General & Admin. Expense(SGA) was $140.6 Mil.
Total Current Liabilities was $266.5 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)
=(30.721 / 440.401) / (38.532 / 391.453)
=0.06975688 / 0.09843327
=0.7087

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)
=(98.99 / 391.453) / (101.565 / 440.401)
=0.86540402 / 0.88742987
=0.9752

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 - (263.63 + 18.039) / 315.361) / (1 - (329.682 + 7.588) / 407.972)
=0.10683629 / 0.17330111
=0.6165

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
=440.401 / 391.453
=1.125

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))
=(5.215 / (5.215 + 7.588)) / (6.216 / (6.216 + 18.039))
=0.40732641 / 0.25627706
=1.5894

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)
=(141.449 / 440.401) / (140.649 / 391.453)
=0.32118229 / 0.35929984
=0.8939

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 + 296.466) / 315.361) / ((0 + 266.504) / 407.972)
=0.94008454 / 0.65324091
=1.4391

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
=(118.407 - -0.778 - 191.985) / 315.361
=-0.2308

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.

Aspen Technology Inc has a M-score of -3.94 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.

Aspen Technology Inc Annual Data

Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15
DSRI 0.85760.70362.01421.31721.36650.28030.91980.91830.82870.7087
GMI 0.90070.92520.99780.96111.25570.81890.93740.93640.96870.9752
AQI 1.05710.99151.01181.07670.87221.06350.73760.86340.74060.6165
SGI 1.08611.16290.91370.99990.53391.19121.2271.28071.25711.125
DEPI 0.96351.37521.35170.81511.06061.01411.03191.07030.98311.5894
SGAI 0.79660.9861.16910.92322.10810.78480.81570.74430.78280.8939
LVGI 0.85711.36690.81490.78911.13410.86921.19731.05941.16041.4391
TATA -0.0064-0.0179-0.08880.0421-0.364-0.1359-0.312-0.2617-0.2747-0.2308
M-score -2.52-2.81-1.96-1.92-4.41-3.60-3.98-3.59-3.83-3.94

Aspen Technology Inc Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 0.82560.91831.26830.5970.83780.82870.5460.54140.78960.7087
GMI 0.92540.93640.95290.95380.96360.96870.97240.97940.97170.9752
AQI 1.08790.86340.7170.67690.4560.74060.80711.01910.84540.6165
SGI 1.26051.28071.24351.2731.27741.25711.2551.20371.14621.125
DEPI 1.16971.07031.0140.98091.04950.98311.0851.7681.67441.5894
SGAI 0.74540.74430.79530.77190.78640.78280.77630.79570.8440.8939
LVGI 1.09971.05941.10911.1671.17071.16041.13811.14741.37421.4391
TATA -0.3136-0.2617-0.263-0.2602-0.2448-0.2747-0.2991-0.2729-0.2595-0.2308
M-score -3.85-3.59-3.38-4.00-3.78-3.83-4.16-3.93-3.85-3.94
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