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GuruFocus has detected 4 Warning Signs with Citrix Systems Inc $CTXS.
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Citrix Systems Inc (NAS:CTXS)
Beneish M-Score
-2.94 (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 -2.94 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: -2.94

-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 -2.72.


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 * 1.0524+0.528 * 0.9731+0.404 * 0.9252+0.892 * 1.0257+0.115 * 1.0266
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.007+4.679 * -0.1017-0.327 * 1.0449
=-2.94

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Mar17) TTM:Last Year (Mar16) TTM:
Accounts Receivable was $486 Mil.
Revenue was 662.677 + 908.356 + 841.251 + 842.98 = $3,255 Mil.
Gross Profit was 560.219 + 770.204 + 703.276 + 698.658 = $2,732 Mil.
Total Current Assets was $2,085 Mil.
Total Assets was $5,361 Mil.
Property, Plant and Equipment(Net PPE) was $260 Mil.
Depreciation, Depletion and Amortization(DDA) was $245 Mil.
Selling, General & Admin. Expense(SGA) was $1,503 Mil.
Total Current Liabilities was $1,631 Mil.
Long-Term Debt was $1,358 Mil.
Net Income was 27.621 + 199.85 + 131.901 + 120.898 = $480 Mil.
Non Operating Income was 3.326 + -3.35 + 0.494 + -0.272 = $0 Mil.
Cash Flow from Operations was 249.284 + 259.047 + 288.456 + 228.362 = $1,025 Mil.
Accounts Receivable was $450 Mil.
Revenue was 658.773 + 904.763 + 813.27 + 796.759 = $3,174 Mil.
Gross Profit was 558.962 + 702.01 + 667.016 + 664.008 = $2,592 Mil.
Total Current Assets was $1,788 Mil.
Total Assets was $5,519 Mil.
Property, Plant and Equipment(Net PPE) was $376 Mil.
Depreciation, Depletion and Amortization(DDA) was $372 Mil.
Selling, General & Admin. Expense(SGA) was $1,455 Mil.
Total Current Liabilities was $1,624 Mil.
Long-Term Debt was $1,320 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)
=(485.769 / 3255.264) / (450 / 3173.565)
=0.14922568 / 0.14179637
=1.0524

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)
=(2591.996 / 3173.565) / (2732.357 / 3255.264)
=0.81674584 / 0.83936572
=0.9731

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 - (2085.157 + 260.149) / 5360.566) / (1 - (1787.57 + 376.012) / 5518.689)
=0.56248911 / 0.60795363
=0.9252

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
=3255.264 / 3173.565
=1.0257

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))
=(372.428 / (372.428 + 376.012)) / (244.708 / (244.708 + 260.149))
=0.49760569 / 0.48470755
=1.0266

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)
=(1502.831 / 3255.264) / (1454.99 / 3173.565)
=0.46166179 / 0.45847178
=1.007

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)
=((1357.58 + 1630.987) / 5360.566) / ((1320.24 + 1624.264) / 5518.689)
=0.5575096 / 0.53355136
=1.0449

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
=(480.27 - 0.198 - 1025.149) / 5360.566
=-0.1017

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 -2.94 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 local exchange's currency.

Citrix Systems Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
DSRI 0.8980.90031.29321.06851.08771.11120.91970.95640.95221.0927
GMI 1.01341.01321.00621.0091.01061.02751.01931.03120.9880.9672
AQI 1.04490.96281.04850.91721.1160.971.0960.98730.99470.8745
SGI 1.22711.13751.01941.16141.1771.17211.12851.07691.04220.9926
DEPI 1.05191.18290.91211.00920.97480.87950.94020.93220.92331.2199
SGAI 1.02020.99350.97290.88570.98781.01421.0021.00610.91840.9811
LVGI 0.97581.0510.9951.02031.04430.97341.00331.86211.04620.886
TATA -0.0825-0.1038-0.0951-0.0912-0.0787-0.0992-0.1128-0.1064-0.1298-0.0901
M-score -2.72-2.94-2.62-2.71-2.57-2.69-2.93-3.23-3.11-2.83

Citrix Systems Inc Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
DSRI 0.95640.81510.95160.96480.95221.02030.99071.00761.09271.0524
GMI 1.03121.02720.99350.99230.9880.98421.00290.99770.96720.9731
AQI 0.98730.97141.00340.92950.99470.97170.90980.91280.87450.9252
SGI 1.07691.05221.03951.04151.04221.00661.01631.00790.99261.0257
DEPI 0.93220.94781.05660.94560.92330.94930.87631.06261.21991.0266
SGAI 1.00611.011.00120.94320.91840.90360.91860.95820.98111.007
LVGI 1.86211.95590.98191.0091.04620.99171.00470.93990.8861.0449
TATA -0.1064-0.1127-0.1013-0.1193-0.1298-0.1286-0.1264-0.1145-0.0901-0.1017
M-score -3.23-3.45-2.95-3.07-3.11-3.06-3.10-3.00-2.83-2.94
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