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Citrix Systems Inc (NAS:CTXS)
Beneish M-Score
-2.93 (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 -2.93 suggests that the company is not a manipulator.

CTXS' s 10-Year Beneish M-Score Range
Min: -3.36   Max: -2.19
Current: -2.93

-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 -2.69.


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 * 0.9197+0.528 * 1.0193+0.404 * 1.096+0.892 * 1.1285+0.115 * 0.9402
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.002+4.679 * -0.1128-0.327 * 1.0033
=-2.93

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

This Year (Dec13) TTM:Last Year (Dec12) TTM:
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.
Net Income was 138.644 + 76.73 + 64.461 + 59.688 = $340 Mil.
Non Operating Income was -0.968 + 1.359 + -0.646 + -0.766 = $-1 Mil.
Cash Flow from Operations was 247.014 + 222.948 + 208.902 + 249.479 = $928 Mil.
Accounts Receivable was $631 Mil.
Revenue was 739.996 + 641.422 + 615.21 + 589.495 = $2,586 Mil.
Gross Profit was 622.628 + 535.354 + 520.852 + 503.152 = $2,182 Mil.
Total Current Assets was $1,714 Mil.
Total Assets was $4,796 Mil.
Property, Plant and Equipment(Net PPE) was $303 Mil.
Depreciation, Depletion and Amortization(DDA) was $215 Mil.
Selling, General & Admin. Expense(SGA) was $1,306 Mil.
Total Current Liabilities was $1,343 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)
=(654.821 / 2918.434) / (630.956 / 2586.123)
=0.2243741 / 0.24397757
=0.9197

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)
=(588.798 / 2586.123) / (665.712 / 2918.434)
=0.84372862 / 0.82771754
=1.0193

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 - (1563.095 + 338.996) / 5212.249) / (1 - (1713.735 + 303.294) / 4796.402)
=0.63507288 / 0.5794704
=1.096

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
=2918.434 / 2586.123
=1.1285

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))
=(214.873 / (214.873 + 303.294)) / (267.5 / (267.5 + 338.996))
=0.41467905 / 0.44105814
=0.9402

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)
=(1476.916 / 2918.434) / (1306.088 / 2586.123)
=0.50606455 / 0.50503708
=1.002

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 + 1464.061) / 5212.249) / ((0 + 1342.873) / 4796.402)
=0.28088854 / 0.27997507
=1.0033

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
=(339.523 - -1.021 - 928.343) / 5212.249
=-0.1128

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 -2.93 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

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DSRI 1.05411.08771.11041.01061.15461.11120.99891.0480.85160.9197
GMI 1.0181.01061.01631.01631.01831.02751.02781.02861.02371.0193
AQI 1.10851.1161.07480.90451.08390.971.13441.32321.05431.096
SGI 1.17851.1771.18131.18081.16481.17211.15811.16541.15841.1285
DEPI 1.02130.97480.91120.87910.87940.87950.88670.87740.92080.9402
SGAI 0.9040.98781.00471.03161.04791.01421.01881.00941.00071.002
LVGI 1.06421.04431.08760.97640.95970.97340.95311.03191.00741.0033
TATA -0.0891-0.0787-0.0985-0.0931-0.0939-0.0991-0.1008-0.1114-0.1161-0.1128
M-score -2.64-2.57-2.68-2.79-2.60-2.69-2.74-2.69-3.00-2.93
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