Ansys Beneish M Score

ANSS
 Stock
  

USD 279.99  3.73  1.31%   

This module uses fundamental data of Ansys to approximate the value of its Beneish M Score. Ansys M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Please continue to Ansys Piotroski F Score and Ansys Altman Z Score analysis.
  
As of 08/17/2022, Total Debt is likely to drop to about 746.6 M. In addition to that, Debt Current is likely to drop to about 84.5 M. Ansys Total Assets Per Share are relatively stable at the moment as compared to the past year. Ansys reported last year Total Assets Per Share of 72.63. As of 08/17/2022, Net Current Assets as percentage of Total Assets is likely to grow to 18.41, while PPandE Turnover is likely to drop 18.35.
At this time, it appears that Ansys Inc is an unlikely manipulator. The earnings manipulation may begin if Ansys' top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Ansys executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Ansys' earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.64
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables0.92Focus
Asset Quality0.96Focus
Expense Coverage0.93Focus
Gross Margin Strengs1.1Focus
Accruals Factor0.93Focus
Depreciation Resistance0.94Focus
Net Sales Growth0.88Focus
Financial Leverage Condition0.97Focus

Ansys Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Ansys' auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Revenues1.7 B1.9 B
Fairly Down
Increasing
Slightly volatile
Selling General and Administrative Expense584.4 M715.4 M
Significantly Down
Increasing
Slightly volatile
Net Cash Flow from Operations530 M549.5 M
Sufficiently Down
Increasing
Slightly volatile
Depreciation Amortization and Accretion115.4 M129.1 M
Moderately Down
Increasing
Slightly volatile
Total Assets5.4 B6.3 B
Fairly Down
Increasing
Slightly volatile
Investments370.2 K361 K
Fairly Up
Decreasing
Slightly volatile
Investments Current370.2 K361 K
Fairly Up
Decreasing
Slightly volatile
Property Plant and Equipment Net168.3 M208.8 M
Significantly Down
Increasing
Slightly volatile
Trade and Non Trade Receivables783.1 M970.5 M
Significantly Down
Increasing
Slightly volatile
Total Liabilities1.5 B1.8 B
Significantly Down
Increasing
Slightly volatile
Current Assets1.6 B1.6 B
Sufficiently Down
Increasing
Slightly volatile
Assets Non Current3.8 B4.7 B
Significantly Down
Increasing
Slightly volatile
Current Liabilities735 M778.5 M
Notably Down
Increasing
Slightly volatile
Liabilities Non Current1.1 B1.1 B
Significantly Up
Increasing
Slightly volatile
Total Debt746.6 M858 M
Fairly Down
Increasing
Slightly volatile
Debt Current84.5 M86.2 M
Fairly Down
Increasing
Slightly volatile
Debt Non Current791 M858 M
Significantly Down
Increasing
Slightly volatile
Operating Income499.1 M513.3 M
Fairly Down
Increasing
Slightly volatile
Gross Margin0.950.865
Significantly Up
Increasing
Slightly volatile

Ansys Inc Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Ansys' different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Ansys in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Ansys' degree of accounting gimmicks and manipulations.

About Ansys Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Depreciation Amortization and Accretion

115.42 Million

Ansys Depreciation Amortization and Accretion is relatively stable at the moment as compared to the past year. Ansys reported last year Depreciation Amortization and Accretion of 129.06 Million

Ansys Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Ansys. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201720182019202020212022 (projected)
Revenues1.1 B1.29 B1.52 B1.68 B1.91 B1.67 B
Total Assets2.94 B3.27 B4.84 B5.94 B6.32 B5.4 B
Current Assets1.27 B1.31 B1.56 B1.72 B1.64 B1.58 B
Assets Non Current1.67 B1.95 B3.28 B4.22 B4.69 B3.83 B
Total Liabilities695.79 M616.42 M1.39 B1.84 B1.84 B1.49 B
Current Liabilities608.55 M524.77 M695.14 M728.83 M778.49 M735.03 M
Operating Income390.73 M476.57 M515.04 M496.36 M513.27 M499.14 M
Investments286 K225 K288 K479 K361 K370.21 K
Investments Current286 K225 K288 K479 K361 K370.21 K
Gross Margin0.850.860.880.890.870.95

Ansys ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Ansys' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Ansys' managers, analysts, and investors.
Environment Score
Governance Score
Social Score

About Ansys Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Ansys Inc's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Ansys using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Ansys Inc based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
ANSYS, Inc. develops and markets engineering simulation software and services worldwide. The company was founded in 1970 and is headquartered in Canonsburg, Pennsylvania. Ansys operates under SoftwareApplication classification in the United States and is traded on NASDAQ Exchange. It employs 5200 people.

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Our tools can tell you how much better you can do entering a position in Ansys without increasing your portfolio risk or giving up expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate.risk-adjusted returns of your individual positions relative to your overall portfolio.

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Pair Trading with Ansys

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Ansys position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Ansys will appreciate offsetting losses from the drop in the long position's value.

Moving together with Ansys

0.96ADSKAutodesk Earnings Call  This WeekPairCorr
0.94AMSWAAmer Software Earnings Call  This WeekPairCorr

Moving against Ansys

0.51AVYAAvaya Holdings Corp Fiscal Year End 28th of November 2022 PairCorr
The ability to find closely correlated positions to Ansys could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Ansys when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Ansys - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Ansys Inc to buy it.
The correlation of Ansys is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Ansys moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Ansys Inc moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Ansys can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching
Please continue to Ansys Piotroski F Score and Ansys Altman Z Score analysis. Note that the Ansys Inc information on this page should be used as a complementary analysis to other Ansys' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Bond Directory module to find actively traded corporate debentures issued by US companies.

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When running Ansys Inc price analysis, check to measure Ansys' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Ansys is operating at the current time. Most of Ansys' value examination focuses on studying past and present price action to predict the probability of Ansys' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Ansys' price. Additionally, you may evaluate how the addition of Ansys to your portfolios can decrease your overall portfolio volatility.
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Is Ansys' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Ansys. If investors know Ansys will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Ansys listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
0.066
Market Capitalization
24.7 B
Quarterly Revenue Growth YOY
0.061
Return On Assets
0.0585
Return On Equity
0.11
The market value of Ansys Inc is measured differently than its book value, which is the value of Ansys that is recorded on the company's balance sheet. Investors also form their own opinion of Ansys' value that differs from its market value or its book value, called intrinsic value, which is Ansys' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Ansys' market value can be influenced by many factors that don't directly affect Ansys' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Ansys' value and its price as these two are different measures arrived at by different means. Investors typically determine Ansys value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Ansys' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.