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Citrix Systems Inc (NAS:CTXS)
Beneish M-Score
-3.23 (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 -3.23 suggests that the company is not a manipulator.

CTXS' s 10-Year Beneish M-Score Range
Min: -3.36   Max: -2.19
Current: -3.23

-3.36
-2.19

During the past 13 years, the highest Beneish M-Score of Citrix Systems Inc was -2.19. The lowest was -3.36. And the median was -2.70.


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 * 0.9564+0.528 * 1.0312+0.404 * 0.9873+0.892 * 1.0769+0.115 * 0.9322
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0061+4.679 * -0.1064-0.327 * 1.8621
=-3.23

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
Accounts Receivable was $674 Mil.
Revenue was 851.483 + 758.994 + 781.56 + 750.819 = $3,143 Mil.
Gross Profit was 676.831 + 623.009 + 606.304 + 616.493 = $2,523 Mil.
Total Current Assets was $1,688 Mil.
Total Assets was $5,512 Mil.
Property, Plant and Equipment(Net PPE) was $368 Mil.
Depreciation, Depletion and Amortization(DDA) was $330 Mil.
Selling, General & Admin. Expense(SGA) was $1,600 Mil.
Total Current Liabilities was $1,590 Mil.
Long-Term Debt was $1,293 Mil.
Net Income was 95.228 + 47.532 + 53.024 + 55.939 = $252 Mil.
Non Operating Income was -1.692 + -2.235 + 1.452 + -5.285 = $-8 Mil.
Cash Flow from Operations was 190.431 + 164.134 + 203.54 + 287.876 = $846 Mil.
Accounts Receivable was $655 Mil.
Revenue was 802.42 + 712.731 + 730.384 + 672.899 = $2,918 Mil.
Gross Profit was 665.712 + 588.798 + 603.144 + 557.985 = $2,416 Mil.
Total Current Assets was $1,563 Mil.
Total Assets was $5,212 Mil.
Property, Plant and Equipment(Net PPE) was $339 Mil.
Depreciation, Depletion and Amortization(DDA) was $268 Mil.
Selling, General & Admin. Expense(SGA) was $1,477 Mil.
Total Current Liabilities was $1,464 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)
=(674.401 / 3142.856) / (654.821 / 2918.434)
=0.21458221 / 0.2243741
=0.9564

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)
=(623.009 / 2918.434) / (676.831 / 3142.856)
=0.82771754 / 0.80265752
=1.0312

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 - (1688.324 + 367.779) / 5512.007) / (1 - (1563.095 + 338.996) / 5212.249)
=0.62697743 / 0.63507288
=0.9873

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
=3142.856 / 2918.434
=1.0769

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))
=(267.5 / (267.5 + 338.996)) / (330.27 / (330.27 + 367.779))
=0.44105814 / 0.47313297
=0.9322

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)
=(1600.187 / 3142.856) / (1476.916 / 2918.434)
=0.50915059 / 0.50606455
=1.0061

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)
=((1292.953 + 1590.109) / 5512.007) / ((0 + 1464.061) / 5212.249)
=0.52305122 / 0.28088854
=1.8621

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
=(251.723 - -7.76 - 845.981) / 5512.007
=-0.1064

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 -3.23 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 1.06851.15630.8980.90031.29321.06851.08771.11120.91970.9564
GMI 1.03891.02541.01311.01321.00621.0091.01061.02751.01931.0312
AQI 0.8611.04591.04490.96281.04850.91721.1160.971.0960.9873
SGI 1.22611.24831.22711.13751.01941.16141.1771.17211.12851.0769
DEPI 0.76711.04521.05191.18290.91211.00920.97480.87950.94020.9322
SGAI 0.95311.01731.01350.99350.97290.88570.98781.01421.0021.0061
LVGI 1.02510.970.97581.0510.9951.02031.04430.97341.00331.8621
TATA -0.0744-0.0717-0.0825-0.1038-0.0951-0.0912-0.0787-0.0991-0.1128-0.1064
M-score -2.63-2.41-2.72-2.94-2.62-2.71-2.57-2.69-2.93-3.23

Citrix Systems Inc Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 1.11120.99891.0480.85160.91971.00930.93730.95420.95640.8151
GMI 1.02751.02781.02861.02371.01931.01481.02451.02331.03121.0272
AQI 0.971.13441.32321.05431.0960.96240.96740.97230.98730.9714
SGI 1.17211.15811.16541.15841.12851.12241.09441.08331.07691.0522
DEPI 0.87950.88670.87740.92080.94020.96460.94030.93830.93220.9614
SGAI 1.01421.01881.00941.00071.0020.98740.9770.99421.00611.01
LVGI 0.97340.95311.03191.00741.00331.02241.93992.00741.86211.9559
TATA -0.0991-0.1044-0.1148-0.1195-0.1128-0.1154-0.1174-0.1115-0.1064-0.1127
M-score -2.69-2.76-2.71-3.01-2.93-2.92-3.31-3.30-3.23-3.45
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