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Citrix Systems Inc (NAS:CTXS)
Beneish M-Score
-3.31 (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.

Citrix Systems Inc has a M-score of -3.31 suggests that the company is not a manipulator.

CTXS' s 10-Year Beneish M-Score Range
Min: -3.47   Max: -1.08
Current: -3.31

-3.47
-1.08

During the past 13 years, the highest Beneish M-Score of Citrix Systems Inc was -1.08. The lowest was -3.47. And the median was -2.71.


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 Citrix Systems 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 * 0.9373+0.528 * 1.0245+0.404 * 0.9674+0.892 * 1.0944+0.115 * 0.9403
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.977+4.679 * -0.1174-0.327 * 1.9399
=-3.31

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was $506 Mil.
Revenue was 781.56 + 750.819 + 802.42 + 712.731 = $3,048 Mil.
Gross Profit was 606.304 + 616.493 + 665.712 + 588.798 = $2,477 Mil.
Total Current Assets was $1,542 Mil.
Total Assets was $5,249 Mil.
Property, Plant and Equipment(Net PPE) was $340 Mil.
Depreciation, Depletion and Amortization(DDA) was $306 Mil.
Selling, General & Admin. Expense(SGA) was $1,517 Mil.
Total Current Liabilities was $1,476 Mil.
Long-Term Debt was $1,277 Mil.
Net Income was 53.024 + 55.939 + 138.644 + 76.73 = $324 Mil.
Non Operating Income was 1.452 + -5.285 + -0.968 + 1.359 = $-3 Mil.
Cash Flow from Operations was 203.54 + 287.876 + 247.014 + 205.629 = $944 Mil.
Accounts Receivable was $494 Mil.
Revenue was 730.384 + 672.899 + 739.996 + 641.422 = $2,785 Mil.
Gross Profit was 603.144 + 557.985 + 622.628 + 535.354 = $2,319 Mil.
Total Current Assets was $1,371 Mil.
Total Assets was $4,996 Mil.
Property, Plant and Equipment(Net PPE) was $311 Mil.
Depreciation, Depletion and Amortization(DDA) was $250 Mil.
Selling, General & Admin. Expense(SGA) was $1,419 Mil.
Total Current Liabilities was $1,351 Mil.
Long-Term Debt was $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)
=(506.409 / 3047.53) / (493.671 / 2784.701)
=0.16617031 / 0.17727972
=0.9373

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)
=(616.493 / 2784.701) / (606.304 / 3047.53)
=0.83280431 / 0.81289011
=1.0245

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 - (1541.57 + 339.832) / 5249.216) / (1 - (1371.358 + 311.316) / 4996.011)
=0.64158419 / 0.6631965
=0.9674

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
=3047.53 / 2784.701
=1.0944

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))
=(250.014 / (250.014 + 311.316)) / (305.809 / (305.809 + 339.832))
=0.44539576 / 0.47365177
=0.9403

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)
=(1517.448 / 3047.53) / (1419.243 / 2784.701)
=0.49792717 / 0.50965723
=0.977

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)
=((1277.289 + 1475.595) / 5249.216) / ((0 + 1350.622) / 4996.011)
=0.52443717 / 0.27034008
=1.9399

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
=(324.337 - -3.442 - 944.059) / 5249.216
=-0.1174

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.

Citrix Systems Inc has a M-score of -3.31 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.

Citrix Systems Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 0.98431.06851.15630.8980.90031.29321.06851.08771.11120.9197
GMI 0.99321.03891.02541.01311.01321.00621.0091.01061.02751.0193
AQI 1.60920.8611.04591.04490.96281.04850.91721.1160.971.096
SGI 1.25911.22611.24831.22711.13751.01941.16141.1771.17211.1285
DEPI 1.050.76711.04521.05191.18290.91211.00920.97480.87950.9402
SGAI 1.04220.95311.01731.01350.99350.97290.88570.98781.01421.002
LVGI 0.57821.02510.970.97581.0510.9951.02031.04430.97341.0033
TATA -0.1005-0.0744-0.0717-0.0825-0.1038-0.0951-0.0912-0.0787-0.0991-0.1128
M-score -2.35-2.63-2.41-2.72-2.94-2.62-2.71-2.57-2.69-2.93

Citrix Systems Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 1.11041.01061.15461.11120.99891.0480.85160.91971.00930.9373
GMI 1.01631.01631.01831.02751.02781.02861.02371.01931.01481.0245
AQI 1.07480.90451.08390.971.13441.32321.05431.0960.96240.9674
SGI 1.18131.18081.16481.17211.15811.16541.15841.12851.12241.0944
DEPI 0.91120.87910.87940.87950.88670.87740.92080.94020.96460.9403
SGAI 1.00471.03161.04791.01421.01881.00941.00071.0020.98740.977
LVGI 1.08760.97640.95970.97340.95311.03191.00741.00331.02241.9399
TATA -0.0985-0.0931-0.0939-0.0991-0.1044-0.1148-0.1161-0.1128-0.1154-0.1174
M-score -2.68-2.79-2.60-2.69-2.76-2.71-3.00-2.93-2.92-3.31
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