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TIBCO Software Inc (NAS:TIBX)
Beneish M-Score
-2.51 (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 -2.52 suggests that the company is not a manipulator.

TIBX' s 10-Year Beneish M-Score Range
Min: -3.97   Max: -1.14
Current: -2.51

-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 -2.69.


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 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 * 1.1704+0.528 * 1.0096+0.404 * 1.0355+0.892 * 1.0466+0.115 * 0.9881
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0136+4.679 * -0.0548-0.327 * 0.9775
=-2.52

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

This Year (Feb14) TTM:Last Year (Feb13) TTM:
Accounts Receivable was $206 Mil.
Revenue was 252.879 + 315.455 + 270.859 + 245.846 = $1,085 Mil.
Gross Profit was 175.347 + 233.591 + 192.886 + 171.875 = $774 Mil.
Total Current Assets was $1,059 Mil.
Total Assets was $1,992 Mil.
Property, Plant and Equipment(Net PPE) was $103 Mil.
Depreciation, Depletion and Amortization(DDA) was $56 Mil.
Selling, General & Admin. Expense(SGA) was $418 Mil.
Total Current Liabilities was $414 Mil.
Long-Term Debt was $544 Mil.
Net Income was 12.15 + 44.549 + 21.251 + 8.715 = $87 Mil.
Non Operating Income was -0.323 + 0.841 + 0.153 + -0.569 = $0 Mil.
Cash Flow from Operations was 52.869 + 59.617 + 58.326 + 24.854 = $196 Mil.
Accounts Receivable was $168 Mil.
Revenue was 237.79 + 296.527 + 255.021 + 247.363 = $1,037 Mil.
Gross Profit was 164.153 + 220.938 + 182.772 + 178.476 = $746 Mil.
Total Current Assets was $1,048 Mil.
Total Assets was $1,916 Mil.
Property, Plant and Equipment(Net PPE) was $97 Mil.
Depreciation, Depletion and Amortization(DDA) was $51 Mil.
Selling, General & Admin. Expense(SGA) was $394 Mil.
Total Current Liabilities was $415 Mil.
Long-Term Debt was $528 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)
=(205.521 / 1085.039) / (167.783 / 1036.701)
=0.18941347 / 0.16184319
=1.1704

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)
=(233.591 / 1036.701) / (175.347 / 1085.039)
=0.71991731 / 0.71306101
=1.0096

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 - (1058.79 + 102.867) / 1992.324) / (1 - (1047.707 + 97.074) / 1916.38)
=0.41693369 / 0.40263361
=1.0355

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
=1085.039 / 1036.701
=1.0466

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))
=(51.476 / (51.476 + 97.074)) / (55.56 / (55.56 + 102.867))
=0.34652306 / 0.3506978
=0.9881

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)
=(417.514 / 1085.039) / (393.57 / 1036.701)
=0.3847917 / 0.37963694
=1.0136

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)
=((544.054 + 414.297) / 1992.324) / ((528.285 + 414.75) / 1916.38)
=0.48102166 / 0.49209186
=0.9775

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
=(86.665 - 0.102 - 195.666) / 1992.324
=-0.0548

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 -2.52 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

Nov11Feb12May12Aug12Nov12Feb13May13Aug13Nov13Feb14
DSRI 0.86651.0150.85521.03221.07040.82561.02480.85660.94571.1704
GMI 1.00891.0081.00141.00181.011.01231.02161.02071.01591.0096
AQI 0.97470.91610.87850.85610.80110.81260.91790.98631.04621.0355
SGI 1.22051.22481.19831.1671.11341.07921.0441.03281.04421.0466
DEPI 0.98351.0651.1041.06141.02450.95650.950.9750.98360.9881
SGAI 0.9770.98520.98820.98521.00871.0041.02251.02141.02281.0136
LVGI 1.11021.31591.73741.62611.5261.39660.97030.95650.95670.9775
TATA -0.0704-0.0695-0.0662-0.055-0.0592-0.0765-0.0604-0.0672-0.0606-0.0548
M-score -2.78-2.71-3.02-2.81-2.84-3.13-2.72-2.88-2.74-2.52
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