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Citrix Systems Inc (NAS:CTXS)
Beneish M-Score
-3.07 (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 -3.07 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: -3.07

-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 * 0.9693+0.528 * 0.9873+0.404 * 0.9717+0.892 * 1.0595+0.115 * 0.9049
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9045+4.679 * -0.1286-0.327 * 0.9917
=-3.07

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $450 Mil.
Revenue was 825.678 + 904.763 + 813.27 + 796.759 = $3,340 Mil.
Gross Profit was 686.586 + 702.01 + 667.016 + 664.008 = $2,720 Mil.
Total Current Assets was $1,788 Mil.
Total Assets was $5,519 Mil.
Property, Plant and Equipment(Net PPE) was $376 Mil.
Depreciation, Depletion and Amortization(DDA) was $399 Mil.
Selling, General & Admin. Expense(SGA) was $1,533 Mil.
Total Current Liabilities was $1,624 Mil.
Long-Term Debt was $1,320 Mil.
Net Income was 83.463 + 131.274 + 55.925 + 103.275 = $374 Mil.
Non Operating Income was -1.003 + 7.75 + -2.369 + -3.262 = $1 Mil.
Cash Flow from Operations was 339.965 + 281.735 + 259.795 + 201.147 = $1,083 Mil.
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.



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)
=(450 / 3340.47) / (438.177 / 3152.839)
=0.13471158 / 0.13897855
=0.9693

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)
=(702.01 / 3152.839) / (686.586 / 3340.47)
=0.80382792 / 0.81414292
=0.9873

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 - (1787.57 + 376.012) / 5518.689) / (1 - (1668.656 + 373.384) / 5454.636)
=0.60795363 / 0.62563221
=0.9717

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
=3340.47 / 3152.839
=1.0595

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))
=(325.418 / (325.418 + 373.384)) / (398.661 / (398.661 + 376.012))
=0.46567983 / 0.51461843
=0.9049

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)
=(1533.123 / 3340.47) / (1599.734 / 3152.839)
=0.45895428 / 0.50739476
=0.9045

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)
=((1320.24 + 1624.264) / 5518.689) / ((1300.872 + 1633.938) / 5454.636)
=0.53355136 / 0.53803957
=0.9917

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
=(373.937 - 1.116 - 1082.642) / 5518.689
=-0.1286

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 -3.07 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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.15630.8980.90031.29321.06851.08771.11120.91970.95640.9522
GMI 1.02541.01311.01321.00621.00361.011.03361.01931.03120.988
AQI 1.04591.04490.96281.04850.91721.1160.971.0960.98730.9962
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 1.01731.01350.99350.97290.92660.98580.97141.0021.00610.9222
LVGI 0.970.97581.0510.9951.02031.04430.97341.00331.86211.0484
TATA -0.0717-0.0825-0.1038-0.0951-0.0913-0.0787-0.0991-0.1128-0.1064-0.1294
M-score -2.41-2.72-2.94-2.62-2.72-2.57-2.68-2.93-3.23-3.11

Citrix Systems Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 0.91971.00930.93730.95420.95640.81510.95160.96480.95220.9693
GMI 1.01931.01481.02451.02331.03121.02720.99350.99230.9880.9873
AQI 1.0960.96240.96740.97230.98730.97141.00340.92950.99620.9717
SGI 1.12851.12241.09441.08331.07691.05221.03951.04151.04221.0595
DEPI 0.94020.96460.94030.93830.93220.96141.03570.90550.92330.9049
SGAI 1.0020.98740.9770.99421.00611.011.00120.94320.92220.9045
LVGI 1.00331.02241.93992.00741.86211.95590.98191.0091.04840.9917
TATA -0.1128-0.1187-0.1207-0.1148-0.1064-0.1127-0.1013-0.1193-0.1294-0.1286
M-score -2.93-2.93-3.33-3.32-3.23-3.45-2.96-3.07-3.11-3.07
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