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Citrix Systems Inc (NAS:CTXS)
Beneish M-Score
-2.92 (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 -2.92 suggests that the company is not a manipulator.

CTXS' s 10-Year Beneish M-Score Range
Min: -3.47   Max: -1.08
Current: -2.92

-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 -2.69.


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 * 1.0093+0.528 * 1.0148+0.404 * 0.9624+0.892 * 1.1224+0.115 * 0.9646
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9874+4.679 * -0.1154-0.327 * 1.0224
=-2.92

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

This Year (Mar14) TTM:Last Year (Mar13) TTM:
Accounts Receivable was $511 Mil.
Revenue was 750.819 + 802.42 + 712.731 + 730.384 = $2,996 Mil.
Gross Profit was 616.493 + 665.712 + 588.798 + 603.144 = $2,474 Mil.
Total Current Assets was $1,539 Mil.
Total Assets was $5,269 Mil.
Property, Plant and Equipment(Net PPE) was $337 Mil.
Depreciation, Depletion and Amortization(DDA) was $273 Mil.
Selling, General & Admin. Expense(SGA) was $1,505 Mil.
Total Current Liabilities was $1,450 Mil.
Long-Term Debt was $0 Mil.
Net Income was 55.939 + 138.644 + 76.73 + 64.461 = $336 Mil.
Non Operating Income was -5.285 + -0.968 + 1.359 + -0.599 = $-5 Mil.
Cash Flow from Operations was 287.876 + 247.014 + 205.629 + 208.902 = $949 Mil.
Accounts Receivable was $451 Mil.
Revenue was 672.899 + 739.996 + 641.422 + 615.21 = $2,670 Mil.
Gross Profit was 557.985 + 622.628 + 535.354 + 520.852 = $2,237 Mil.
Total Current Assets was $1,301 Mil.
Total Assets was $4,848 Mil.
Property, Plant and Equipment(Net PPE) was $302 Mil.
Depreciation, Depletion and Amortization(DDA) was $230 Mil.
Selling, General & Admin. Expense(SGA) was $1,358 Mil.
Total Current Liabilities was $1,304 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)
=(510.862 / 2996.354) / (450.939 / 2669.527)
=0.17049454 / 0.16892094
=1.0093

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)
=(665.712 / 2669.527) / (616.493 / 2996.354)
=0.83790836 / 0.82571919
=1.0148

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 - (1538.901 + 336.74) / 5269.473) / (1 - (1301.475 + 302.378) / 4848.339)
=0.6440553 / 0.66919537
=0.9624

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
=2996.354 / 2669.527
=1.1224

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))
=(229.862 / (229.862 + 302.378)) / (272.995 / (272.995 + 336.74))
=0.4318766 / 0.44772729
=0.9646

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)
=(1505.333 / 2996.354) / (1358.242 / 2669.527)
=0.50238824 / 0.508795
=0.9874

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 + 1449.536) / 5269.473) / ((0 + 1304.45) / 4848.339)
=0.27508178 / 0.26905091
=1.0224

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
=(335.774 - -5.493 - 949.421) / 5269.473
=-0.1154

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 -2.92 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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