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Citrix Systems Inc (NAS:CTXS)
Beneish M-Score
-3.11 (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 -3.11 suggests that the company is not a manipulator.

CTXS' s Beneish M-Score Range Over the Past 10 Years
Min: -3.36   Max: -0.11
Current: -3.11

-3.36
-0.11

During the past 13 years, the highest Beneish M-Score of Citrix Systems Inc was -0.11. The lowest was -3.36. And the median was -2.70.


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 * 0.9522+0.528 * 0.988+0.404 * 0.9962+0.892 * 1.0422+0.115 * 0.9233
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9222+4.679 * -0.1294-0.327 * 1.0484
=-3.11

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

This Year (Dec15) TTM:Last Year (Dec14) TTM:
Accounts Receivable was $669 Mil.
Revenue was 904.763 + 813.27 + 796.759 + 760.802 = $3,276 Mil.
Gross Profit was 702.01 + 667.016 + 664.008 + 628.196 = $2,661 Mil.
Total Current Assets was $1,684 Mil.
Total Assets was $5,481 Mil.
Property, Plant and Equipment(Net PPE) was $374 Mil.
Depreciation, Depletion and Amortization(DDA) was $393 Mil.
Selling, General & Admin. Expense(SGA) was $1,538 Mil.
Total Current Liabilities was $1,681 Mil.
Long-Term Debt was $1,325 Mil.
Net Income was 131.274 + 55.925 + 103.275 + 28.887 = $319 Mil.
Non Operating Income was 7.75 + -2.369 + -3.262 + -7.849 = $-6 Mil.
Cash Flow from Operations was 281.735 + 259.795 + 201.147 + 291.871 = $1,035 Mil.
Accounts Receivable was $674 Mil.
Revenue was 851.483 + 758.994 + 781.56 + 750.819 = $3,143 Mil.
Gross Profit was 676.831 + 623.009 + 606.304 + 616.493 = $2,523 Mil.
Total Current Assets was $1,688 Mil.
Total Assets was $5,512 Mil.
Property, Plant and Equipment(Net PPE) was $368 Mil.
Depreciation, Depletion and Amortization(DDA) was $330 Mil.
Selling, General & Admin. Expense(SGA) was $1,600 Mil.
Total Current Liabilities was $1,590 Mil.
Long-Term Debt was $1,293 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)
=(669.276 / 3275.594) / (674.401 / 3142.856)
=0.20432203 / 0.21458221
=0.9522

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)
=(667.016 / 3142.856) / (702.01 / 3275.594)
=0.80265752 / 0.81244196
=0.988

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 - (1683.951 + 373.817) / 5481.438) / (1 - (1688.324 + 367.779) / 5512.007)
=0.6245934 / 0.62697743
=0.9962

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
=3275.594 / 3142.856
=1.0422

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))
=(330.27 / (330.27 + 367.779)) / (392.879 / (392.879 + 373.817))
=0.47313297 / 0.51243126
=0.9233

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)
=(1538.027 / 3275.594) / (1600.187 / 3142.856)
=0.4695414 / 0.50915059
=0.9222

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)
=((1324.992 + 1680.969) / 5481.438) / ((1292.953 + 1590.109) / 5512.007)
=0.54838913 / 0.52305122
=1.0484

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
=(319.361 - -5.73 - 1034.548) / 5481.438
=-0.1294

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 -3.11 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 0.94020.96460.93120.91550.93220.96141.05660.94560.92330.9049
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 -0.1128-0.1154-0.1174-0.1115-0.1064-0.1127-0.1013-0.1193-0.1294-0.1286
M-score -2.93-2.92-3.31-3.31-3.23-3.45-2.95-3.07-3.11-3.07
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