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Citrix Systems Inc (NAS:CTXS)
Beneish M-Score
-3.45 (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 -3.45 suggests that the company is not a manipulator.

CTXS' s 10-Year Beneish M-Score Range
Min: -3.47   Max: -1.08
Current: -3.45

-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 * 0.8151+0.528 * 1.0272+0.404 * 0.9714+0.892 * 1.0522+0.115 * 0.9614
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.01+4.679 * -0.1127-0.327 * 1.9559
=-3.45

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
Accounts Receivable was $438 Mil.
Revenue was 760.802 + 851.483 + 758.994 + 781.56 = $3,153 Mil.
Gross Profit was 628.196 + 676.831 + 623.009 + 606.304 = $2,534 Mil.
Total Current Assets was $1,669 Mil.
Total Assets was $5,455 Mil.
Property, Plant and Equipment(Net PPE) was $373 Mil.
Depreciation, Depletion and Amortization(DDA) was $325 Mil.
Selling, General & Admin. Expense(SGA) was $1,600 Mil.
Total Current Liabilities was $1,634 Mil.
Long-Term Debt was $1,301 Mil.
Net Income was 28.887 + 95.228 + 47.532 + 53.024 = $225 Mil.
Non Operating Income was -7.849 + -1.692 + -2.235 + 1.452 = $-10 Mil.
Cash Flow from Operations was 291.871 + 190.431 + 164.134 + 203.54 = $850 Mil.
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.



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)
=(438.177 / 3152.839) / (510.862 / 2996.354)
=0.13897855 / 0.17049454
=0.8151

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)
=(676.831 / 2996.354) / (628.196 / 3152.839)
=0.82571919 / 0.80382792
=1.0272

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 - (1668.656 + 373.384) / 5454.636) / (1 - (1538.901 + 336.74) / 5269.473)
=0.62563221 / 0.6440553
=0.9714

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
=3152.839 / 2996.354
=1.0522

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))
=(272.995 / (272.995 + 336.74)) / (325.418 / (325.418 + 373.384))
=0.44772729 / 0.46567983
=0.9614

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)
=(1599.734 / 3152.839) / (1505.333 / 2996.354)
=0.50739476 / 0.50238824
=1.01

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)
=((1300.872 + 1633.938) / 5454.636) / ((0 + 1449.536) / 5269.473)
=0.53803957 / 0.27508178
=1.9559

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
=(224.671 - -10.324 - 849.976) / 5454.636
=-0.1127

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 -3.45 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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