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Symantec Corp (NAS:SYMC)
Beneish M-Score
-3.13 (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.

Symantec Corp has a M-score of -3.13 suggests that the company is not a manipulator.

SYMC' s Beneish M-Score Range Over the Past 10 Years
Min: -6.56   Max: -1.01
Current: -3.13

-6.56
-1.01

During the past 13 years, the highest Beneish M-Score of Symantec Corp was -1.01. The lowest was -6.56. And the median was -2.79.


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 Symantec Corp 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 * 0.4033+0.528 * 0.9961+0.404 * 0.6224+0.892 * 1.2371+0.115 * 0.8421
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8597+4.679 * -0.0343-0.327 * 1.0222
=-3.13

* 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 $490 Mil.
Revenue was 909 + 1498 + 1499 + 3451 = $7,357 Mil.
Gross Profit was 759 + 1234 + 1245 + 2849 = $6,087 Mil.
Total Current Assets was $7,173 Mil.
Total Assets was $11,936 Mil.
Property, Plant and Equipment(Net PPE) was $986 Mil.
Depreciation, Depletion and Amortization(DDA) was $398 Mil.
Selling, General & Admin. Expense(SGA) was $2,764 Mil.
Total Current Liabilities was $3,827 Mil.
Long-Term Debt was $1,740 Mil.
Net Income was 170 + 156 + 117 + 176 = $619 Mil.
Non Operating Income was -1 + 2 + -11 + 5 = $-5 Mil.
Cash Flow from Operations was 112 + 134 + 300 + 488 = $1,034 Mil.
Accounts Receivable was $982 Mil.
Revenue was 970 + 1617 + 1735 + 1625 = $5,947 Mil.
Gross Profit was 793 + 1339 + 1426 + 1343 = $4,901 Mil.
Total Current Assets was $5,255 Mil.
Total Assets was $13,102 Mil.
Property, Plant and Equipment(Net PPE) was $1,186 Mil.
Depreciation, Depletion and Amortization(DDA) was $379 Mil.
Selling, General & Admin. Expense(SGA) was $2,599 Mil.
Total Current Liabilities was $4,233 Mil.
Long-Term Debt was $1,745 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)
=(490 / 7357) / (982 / 5947)
=0.06660324 / 0.16512527
=0.4033

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)
=(1234 / 5947) / (759 / 7357)
=0.824113 / 0.82737529
=0.9961

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 - (7173 + 986) / 11936) / (1 - (5255 + 1186) / 13102)
=0.31643767 / 0.50839566
=0.6224

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
=7357 / 5947
=1.2371

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))
=(379 / (379 + 1186)) / (398 / (398 + 986))
=0.24217252 / 0.28757225
=0.8421

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)
=(2764 / 7357) / (2599 / 5947)
=0.37569662 / 0.43702707
=0.8597

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)
=((1740 + 3827) / 11936) / ((1745 + 4233) / 13102)
=0.46640416 / 0.45626622
=1.0222

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
=(619 - -5 - 1034) / 11936
=-0.0343

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.

Symantec Corp has a M-score of -3.13 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.

Symantec Corp Annual Data

Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14Mar15
DSRI 1.46580.79221.00621.05451.05091.14420.86891.04991.01041.0116
GMI 1.08120.99590.96710.98970.98170.9810.99041.01131.00241.0061
AQI 2.65210.97271.04140.81060.88231.06930.9910.85841.0410.9982
SGI 1.60421.25491.12981.04690.97321.03431.08721.02620.96670.9748
DEPI 0.61930.94640.94440.92211.12331.14851.01861.02761.18641.1442
SGAI 1.12021.07171.0520.94351.02381.07110.98510.97750.92220.9607
LVGI 0.64071.57231.06831.52181.01221.07690.92921.05060.89530.9908
TATA -0.0768-0.072-0.0784-0.7957-0.0921-0.0903-0.0927-0.0596-0.0316-0.0336
M-score -1.11-3.00-2.76-6.36-2.94-2.74-2.94-2.75-2.56-2.62

Symantec Corp Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 0.76580.831.01040.95441.29831.25860.84690.78410.92070.4033
GMI 1.00781.00491.00241.00160.99931.00371.00441.00141.0030.9961
AQI 1.00021.02551.0410.97950.97480.98660.99821.0031.01380.6224
SGI 1.0180.99420.96670.96470.97050.87471.16431.12461.11011.2371
DEPI 1.06011.12421.18641.28831.26031.34131.14421.08451.11870.8421
SGAI 0.96760.94410.92220.91840.91750.98190.9110.91070.92290.8597
LVGI 0.8810.86780.89530.96330.96720.9690.99080.98410.97661.0222
TATA -0.0654-0.0469-0.0316-0.0238-0.0212-0.0279-0.0334-0.0435-0.0486-0.0343
M-score -2.93-2.78-2.56-2.61-2.29-2.44-2.59-2.74-2.64-3.13
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