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Citrix Systems Inc (NAS:CTXS)
Beneish M-Score
-3.30 (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 -3.30 suggests that the company is not a manipulator.

CTXS' s 10-Year Beneish M-Score Range
Min: -3.47   Max: -1.08
Current: -3.3

-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 * 0.9542+0.528 * 1.0233+0.404 * 0.9723+0.892 * 1.0833+0.115 * 0.9383
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9942+4.679 * -0.1114-0.327 * 2.0074
=-3.30

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $466 Mil.
Revenue was 758.994 + 781.56 + 750.819 + 802.42 = $3,094 Mil.
Gross Profit was 623.009 + 606.304 + 616.493 + 665.712 = $2,512 Mil.
Total Current Assets was $1,445 Mil.
Total Assets was $5,231 Mil.
Property, Plant and Equipment(Net PPE) was $354 Mil.
Depreciation, Depletion and Amortization(DDA) was $306 Mil.
Selling, General & Admin. Expense(SGA) was $1,567 Mil.
Total Current Liabilities was $1,462 Mil.
Long-Term Debt was $1,285 Mil.
Net Income was 47.532 + 53.024 + 55.939 + 138.644 = $295 Mil.
Non Operating Income was -2.235 + 1.452 + -5.285 + -1.07 = $-7 Mil.
Cash Flow from Operations was 164.134 + 203.54 + 287.876 + 229.694 = $885 Mil.
Accounts Receivable was $450 Mil.
Revenue was 712.731 + 730.384 + 672.899 + 739.996 = $2,856 Mil.
Gross Profit was 588.798 + 603.144 + 557.985 + 622.628 = $2,373 Mil.
Total Current Assets was $1,329 Mil.
Total Assets was $5,124 Mil.
Property, Plant and Equipment(Net PPE) was $337 Mil.
Depreciation, Depletion and Amortization(DDA) was $259 Mil.
Selling, General & Admin. Expense(SGA) was $1,455 Mil.
Total Current Liabilities was $1,341 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)
=(465.558 / 3093.793) / (450.395 / 2856.01)
=0.1504813 / 0.15770078
=0.9542

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)
=(606.304 / 2856.01) / (623.009 / 3093.793)
=0.83072363 / 0.81179251
=1.0233

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 - (1444.71 + 353.72) / 5231.477) / (1 - (1328.806 + 337.021) / 5123.989)
=0.65622902 / 0.67489645
=0.9723

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
=3093.793 / 2856.01
=1.0833

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))
=(259.46 / (259.46 + 337.021)) / (305.674 / (305.674 + 353.72))
=0.43498452 / 0.46356806
=0.9383

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)
=(1566.907 / 3093.793) / (1454.851 / 2856.01)
=0.50646795 / 0.50939983
=0.9942

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)
=((1285.092 + 1462.447) / 5231.477) / ((0 + 1340.595) / 5123.989)
=0.52519375 / 0.26163112
=2.0074

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
=(295.139 - -7.138 - 885.244) / 5231.477
=-0.1114

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 -3.30 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

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 1.01061.15461.11120.99891.0480.85160.91971.00930.93730.9542
GMI 1.01631.01831.02751.02781.02861.02371.01931.01481.02451.0233
AQI 0.90451.08390.971.13441.32321.05431.0960.96240.96740.9723
SGI 1.18081.16481.17211.15811.16541.15841.12851.12241.09441.0833
DEPI 0.87910.87940.87950.88670.87740.92080.94020.96460.94030.9383
SGAI 1.03161.04791.01421.01881.00941.00071.0020.98740.9770.9942
LVGI 0.97640.95970.97340.95311.03191.00741.00331.02241.93992.0074
TATA -0.0931-0.0939-0.0991-0.1044-0.1148-0.1195-0.1128-0.1154-0.1174-0.1114
M-score -2.79-2.60-2.69-2.76-2.71-3.01-2.93-2.92-3.31-3.30
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