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TIBCO Software Inc (NAS:TIBX)
Beneish M-Score
-2.53 (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.

TIBCO Software Inc has a M-score of -2.53 suggests that the company is not a manipulator.

TIBX' s 10-Year Beneish M-Score Range
Min: -3.97   Max: -1.14
Current: -2.53

-3.97
-1.14

During the past 13 years, the highest Beneish M-Score of TIBCO Software Inc was -1.14. The lowest was -3.97. And the median was -2.66.


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 TIBCO Software 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 * 1.0736+0.528 * 1.0069+0.404 * 1.1869+0.892 * 1.0544+0.115 * 1.0013
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0031+4.679 * -0.0545-0.327 * 0.9684
=-2.53

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

This Year (May14) TTM:Last Year (May13) TTM:
Accounts Receivable was $212 Mil.
Revenue was 252.299 + 252.879 + 315.455 + 270.859 = $1,091 Mil.
Gross Profit was 172.842 + 175.347 + 233.591 + 192.886 = $775 Mil.
Total Current Assets was $894 Mil.
Total Assets was $2,007 Mil.
Property, Plant and Equipment(Net PPE) was $108 Mil.
Depreciation, Depletion and Amortization(DDA) was $58 Mil.
Selling, General & Admin. Expense(SGA) was $423 Mil.
Total Current Liabilities was $417 Mil.
Long-Term Debt was $548 Mil.
Net Income was 1.552 + 12.15 + 44.549 + 21.251 = $80 Mil.
Non Operating Income was -0.684 + -0.323 + 0.841 + 0.153 = $-0 Mil.
Cash Flow from Operations was 19.156 + 51.762 + 59.617 + 58.326 = $189 Mil.
Accounts Receivable was $188 Mil.
Revenue was 245.846 + 237.79 + 296.527 + 255.021 = $1,035 Mil.
Gross Profit was 171.875 + 164.153 + 220.938 + 182.772 = $740 Mil.
Total Current Assets was $979 Mil.
Total Assets was $1,859 Mil.
Property, Plant and Equipment(Net PPE) was $96 Mil.
Depreciation, Depletion and Amortization(DDA) was $51 Mil.
Selling, General & Admin. Expense(SGA) was $400 Mil.
Total Current Liabilities was $391 Mil.
Long-Term Debt was $532 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)
=(212.489 / 1091.492) / (187.703 / 1035.184)
=0.19467756 / 0.18132332
=1.0736

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)
=(175.347 / 1035.184) / (172.842 / 1091.492)
=0.71459567 / 0.70973127
=1.0069

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 - (893.512 + 107.904) / 2006.595) / (1 - (978.665 + 95.959) / 1859.365)
=0.50093766 / 0.42204785
=1.1869

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
=1091.492 / 1035.184
=1.0544

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))
=(51.285 / (51.285 + 95.959)) / (57.558 / (57.558 + 107.904))
=0.34829942 / 0.34786235
=1.0013

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)
=(423.467 / 1091.492) / (400.388 / 1035.184)
=0.38797078 / 0.38677955
=1.0031

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)
=((548.123 + 417.021) / 2006.595) / ((532.139 + 391.348) / 1859.365)
=0.48098595 / 0.49666795
=0.9684

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
=(79.502 - -0.013 - 188.861) / 2006.595
=-0.0545

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.

TIBCO Software Inc has a M-score of -2.53 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.

TIBCO Software Inc Annual Data

Nov04Nov05Nov06Nov07Nov08Nov09Nov10Nov11Nov12Nov13
DSRI 1.31370.94031.06111.16350.61611.2050.98920.86651.07040.9457
GMI 1.00051.05240.97291.02311.00110.9731.00861.00891.011.0159
AQI 2.16491.03250.91611.59760.97080.99811.06260.97470.80111.0462
SGI 1.46561.15161.16011.11621.11620.96421.21341.22051.11341.0442
DEPI 0.93680.85930.96750.80340.82751.01990.9110.98351.02450.9836
SGAI 0.79731.01131.05231.02820.99940.9370.95140.9771.00871.0228
LVGI 1.03040.93921.06521.2131.14191.01241.07541.11021.5260.9567
TATA -0.025-0.0077-0.0282-0.0411-0.0912-0.047-0.0574-0.0704-0.0592-0.0606
M-score -1.40-2.39-2.50-2.26-3.23-2.55-2.56-2.78-2.84-2.74

TIBCO Software Inc Quarterly Data

May12Aug12Nov12Feb13May13Aug13Nov13Feb14May14Aug14
DSRI 0.85521.03221.07040.82561.02480.85660.94571.17041.07361.0393
GMI 1.00141.00181.011.01231.02161.02071.01591.00961.00691.0151
AQI 0.87850.85610.80110.81260.91790.98631.04621.03551.18691.1845
SGI 1.19831.1671.11341.07921.0441.03281.04421.04661.05441.024
DEPI 1.1041.06141.02450.95650.950.9750.98360.98811.00130.9927
SGAI 0.98820.98521.00871.0041.02251.02141.02281.01361.00311.0558
LVGI 1.73741.62611.5261.39660.97030.95650.95670.97750.96840.9902
TATA -0.0662-0.055-0.0592-0.0765-0.0604-0.0672-0.0606-0.0542-0.0545-0.0309
M-score -3.02-2.81-2.84-3.13-2.72-2.88-2.74-2.51-2.53-2.49
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