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Citrix Systems Inc (NAS:CTXS)
Beneish M-Score
-3.00 (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 -3.00 suggests that the company is not a manipulator.

CTXS' s Beneish M-Score Range Over the Past 10 Years
Min: -3.47   Max: -0.11
Current: -3

-3.47
-0.11

During the past 13 years, the highest Beneish M-Score of Citrix Systems Inc was -0.11. The lowest was -3.47. And the median was -2.72.


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 * 0.9583+0.528 * 1.001+0.404 * 0.9128+0.892 * 1.0597+0.115 * 1.0626
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9593+4.679 * -0.1145-0.327 * 0.9399
=-3.00

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

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $475 Mil.
Revenue was 841.251 + 842.98 + 825.678 + 904.763 = $3,415 Mil.
Gross Profit was 703.276 + 698.658 + 686.586 + 702.01 = $2,791 Mil.
Total Current Assets was $2,272 Mil.
Total Assets was $5,923 Mil.
Property, Plant and Equipment(Net PPE) was $353 Mil.
Depreciation, Depletion and Amortization(DDA) was $316 Mil.
Selling, General & Admin. Expense(SGA) was $1,565 Mil.
Total Current Liabilities was $2,950 Mil.
Long-Term Debt was $0 Mil.
Net Income was 131.901 + 120.898 + 83.463 + 131.274 = $468 Mil.
Non Operating Income was 0.494 + -0.272 + -1.003 + 7.75 = $7 Mil.
Cash Flow from Operations was 288.456 + 228.362 + 339.965 + 281.735 = $1,139 Mil.
Accounts Receivable was $468 Mil.
Revenue was 813.27 + 796.759 + 760.802 + 851.483 = $3,222 Mil.
Gross Profit was 667.016 + 664.008 + 628.196 + 676.831 = $2,636 Mil.
Total Current Assets was $1,737 Mil.
Total Assets was $5,405 Mil.
Property, Plant and Equipment(Net PPE) was $371 Mil.
Depreciation, Depletion and Amortization(DDA) was $375 Mil.
Selling, General & Admin. Expense(SGA) was $1,539 Mil.
Total Current Liabilities was $1,548 Mil.
Long-Term Debt was $1,317 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)
=(475.085 / 3414.672) / (467.815 / 3222.314)
=0.13913049 / 0.14517983
=0.9583

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)
=(2636.051 / 3222.314) / (2790.53 / 3414.672)
=0.81806149 / 0.81721758
=1.001

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 - (2272.387 + 352.521) / 5922.503) / (1 - (1737.138 + 371.101) / 5405.483)
=0.55679077 / 0.60998138
=0.9128

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
=3414.672 / 3222.314
=1.0597

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))
=(374.76 / (374.76 + 371.101)) / (316.224 / (316.224 + 352.521))
=0.50245287 / 0.47286185
=1.0626

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)
=(1564.726 / 3414.672) / (1539.241 / 3222.314)
=0.45823611 / 0.47768188
=0.9593

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 + 2949.826) / 5922.503) / ((1316.892 + 1547.542) / 5405.483)
=0.49807083 / 0.52991268
=0.9399

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
=(467.536 - 6.969 - 1138.518) / 5922.503
=-0.1145

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 -3.00 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.

Citrix Systems Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.15630.8980.90031.29321.06851.08771.11120.91970.95640.9522
GMI 1.02541.01311.01321.00621.0091.01061.02751.01931.03120.988
AQI 1.04591.04490.96281.04850.91721.1160.971.0960.98730.9947
SGI 1.24831.22711.13751.01941.16141.1771.17211.12851.07691.0422
DEPI 1.04521.05191.18290.91211.00920.97480.87950.94020.93220.9233
SGAI 1.01731.01350.99350.97290.88570.98781.01421.0021.00610.9222
LVGI 0.970.97581.0510.9951.02031.04430.97341.00331.86211.0462
TATA -0.0717-0.0825-0.1038-0.0951-0.0912-0.0787-0.0992-0.1128-0.1064-0.1298
M-score -2.41-2.72-2.94-2.62-2.71-2.57-2.69-2.93-3.23-3.11

Citrix Systems Inc Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 0.93730.95420.95640.81510.95160.96480.95220.96930.94190.9583
GMI 1.02451.02331.03121.02720.99350.99230.9880.98731.00611.001
AQI 0.96740.97230.98730.97141.00340.92950.99470.97170.90980.9128
SGI 1.09441.08331.07691.05221.03951.04151.04221.05951.0691.0597
DEPI 0.93120.91550.93220.94781.05660.94560.92330.92810.87631.0626
SGAI 0.9770.99421.00611.011.00120.94320.92220.90450.91960.9593
LVGI 1.93992.00741.86211.95590.98191.0091.04620.99171.00470.9399
TATA -0.1174-0.1115-0.1064-0.1127-0.1013-0.1193-0.1298-0.1286-0.1264-0.1145
M-score -3.31-3.31-3.23-3.45-2.95-3.07-3.11-3.06-3.10-3.00
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