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Citrix Systems Inc (NAS:CTXS)
Beneish M-Score
-3.10 (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 -3.10 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: -3.1

-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 -2.71.


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 * 0.9419+0.528 * 1.0061+0.404 * 0.9098+0.892 * 1.069+0.115 * 0.8763
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9196+4.679 * -0.1264-0.327 * 1.0047
=-3.10

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $504 Mil.
Revenue was 842.98 + 825.678 + 904.763 + 813.27 = $3,387 Mil.
Gross Profit was 698.658 + 686.586 + 702.01 + 667.016 = $2,754 Mil.
Total Current Assets was $2,002 Mil.
Total Assets was $5,714 Mil.
Property, Plant and Equipment(Net PPE) was $366 Mil.
Depreciation, Depletion and Amortization(DDA) was $391 Mil.
Selling, General & Admin. Expense(SGA) was $1,553 Mil.
Total Current Liabilities was $1,627 Mil.
Long-Term Debt was $1,329 Mil.
Net Income was 120.898 + 83.463 + 131.274 + 55.925 = $392 Mil.
Non Operating Income was -0.272 + -1.003 + 7.75 + -2.369 = $4 Mil.
Cash Flow from Operations was 228.362 + 339.965 + 281.735 + 259.795 = $1,110 Mil.
Accounts Receivable was $501 Mil.
Revenue was 796.759 + 760.802 + 851.483 + 758.994 = $3,168 Mil.
Gross Profit was 664.008 + 628.196 + 676.831 + 623.009 = $2,592 Mil.
Total Current Assets was $1,589 Mil.
Total Assets was $5,502 Mil.
Property, Plant and Equipment(Net PPE) was $371 Mil.
Depreciation, Depletion and Amortization(DDA) was $307 Mil.
Selling, General & Admin. Expense(SGA) was $1,579 Mil.
Total Current Liabilities was $1,524 Mil.
Long-Term Debt was $1,309 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)
=(504.42 / 3386.691) / (500.976 / 3168.038)
=0.14894184 / 0.15813447
=0.9419

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)
=(2592.044 / 3168.038) / (2754.27 / 3386.691)
=0.81818589 / 0.81326286
=1.0061

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 - (2001.791 + 365.804) / 5714.214) / (1 - (1589.283 + 370.767) / 5501.975)
=0.58566568 / 0.6437552
=0.9098

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
=3386.691 / 3168.038
=1.069

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))
=(306.655 / (306.655 + 370.767)) / (390.938 / (390.938 + 365.804))
=0.45267942 / 0.51660672
=0.8763

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)
=(1552.578 / 3386.691) / (1579.31 / 3168.038)
=0.45843509 / 0.49851359
=0.9196

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)
=((1329.478 + 1626.683) / 5714.214) / ((1308.852 + 1524.318) / 5501.975)
=0.51733467 / 0.51493691
=1.0047

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
=(391.56 - 4.106 - 1109.857) / 5714.214
=-0.1264

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 -3.10 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 1.02541.01311.01321.00621.0091.01061.02751.01931.03120.988
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 1.01731.01350.99350.97290.88570.98781.01421.0021.00610.9222
LVGI 0.970.97581.0510.9951.02031.04430.97341.00331.86211.0484
TATA -0.0717-0.0825-0.1038-0.0951-0.0912-0.0787-0.0992-0.1128-0.1064-0.1294
M-score -2.41-2.72-2.94-2.62-2.71-2.57-2.69-2.93-3.23-3.11

Citrix Systems Inc Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 1.00930.93730.95420.95640.81510.95160.96480.95220.96930.9419
GMI 1.01481.02451.02331.03121.02720.99350.99230.9880.98731.0061
AQI 0.96240.96740.97230.98730.97141.00340.92950.99620.97170.9098
SGI 1.12241.09441.08331.07691.05221.03951.04151.04221.05951.069
DEPI 0.96460.93120.91550.93220.94781.05660.94560.92330.92810.8763
SGAI 0.98740.9770.99421.00611.011.00120.94320.92220.90450.9196
LVGI 1.02241.93992.00741.86211.95590.98191.0091.04840.99171.0047
TATA -0.1154-0.1174-0.1115-0.1064-0.1127-0.1013-0.1193-0.1294-0.1286-0.1264
M-score -2.92-3.31-3.31-3.23-3.45-2.95-3.07-3.11-3.06-3.10
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