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Symantec Corp (NAS:SYMC)
Beneish M-Score
-2.17 (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 -2.17 signals that the company is a manipulator.

SYMC' s Beneish M-Score Range Over the Past 10 Years
Min: -6.36   Max: -1.11
Current: -2.17

-6.36
-1.11

During the past 13 years, the highest Beneish M-Score of Symantec Corp was -1.11. The lowest was -6.36. And the median was -2.80.


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 * 0.8677+0.528 * 0.9885+0.404 * 0.6312+0.892 * 0.9153+0.115 * 1.1333
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9164+4.679 * 0.1444-0.327 * 1.132
=-2.17

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $556 Mil.
Revenue was 873 + 909 + 1498 + 1499 = $4,779 Mil.
Gross Profit was 726 + 759 + 1234 + 1245 = $3,964 Mil.
Total Current Assets was $6,959 Mil.
Total Assets was $11,767 Mil.
Property, Plant and Equipment(Net PPE) was $957 Mil.
Depreciation, Depletion and Amortization(DDA) was $299 Mil.
Selling, General & Admin. Expense(SGA) was $1,988 Mil.
Total Current Liabilities was $4,033 Mil.
Long-Term Debt was $2,207 Mil.
Net Income was 2045 + 170 + 156 + 117 = $2,488 Mil.
Non Operating Income was 3 + -1 + 2 + -11 = $-7 Mil.
Cash Flow from Operations was 250 + 112 + 134 + 300 = $796 Mil.
Accounts Receivable was $700 Mil.
Revenue was 899 + 970 + 1617 + 1735 = $5,221 Mil.
Gross Profit was 723 + 793 + 1339 + 1426 = $4,281 Mil.
Total Current Assets was $5,422 Mil.
Total Assets was $13,233 Mil.
Property, Plant and Equipment(Net PPE) was $950 Mil.
Depreciation, Depletion and Amortization(DDA) was $351 Mil.
Selling, General & Admin. Expense(SGA) was $2,370 Mil.
Total Current Liabilities was $4,453 Mil.
Long-Term Debt was $1,746 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)
=(556 / 4779) / (700 / 5221)
=0.11634233 / 0.13407393
=0.8677

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)
=(4281 / 5221) / (3964 / 4779)
=0.81995786 / 0.82946223
=0.9885

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 - (6959 + 957) / 11767) / (1 - (5422 + 950) / 13233)
=0.32727118 / 0.51847654
=0.6312

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
=4779 / 5221
=0.9153

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))
=(351 / (351 + 950)) / (299 / (299 + 957))
=0.26979247 / 0.23805732
=1.1333

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)
=(1988 / 4779) / (2370 / 5221)
=0.41598661 / 0.45393603
=0.9164

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)
=((2207 + 4033) / 11767) / ((1746 + 4453) / 13233)
=0.53029659 / 0.46845009
=1.132

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
=(2488 - -7 - 796) / 11767
=0.1444

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 -2.17 signals that the company is likely to 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

Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14Mar15Mar16
DSRI 0.79221.00621.05451.05091.14420.86891.04991.01040.71311.4359
GMI 0.99590.96710.98970.98180.9810.99041.01131.00241.00610.9924
AQI 0.97271.04140.81060.88231.06930.9910.85841.0411.03670.6312
SGI 1.25491.12981.04690.97321.03431.08721.02620.96670.97480.5532
DEPI 0.9320.94440.97580.9871.22921.02061.03061.18640.96671.3276
SGAI 1.06091.0520.94341.02391.07110.99270.95470.93540.96241.0618
LVGI 1.57231.06831.52181.01221.07690.92921.05060.89530.99081.132
TATA -0.072-0.0784-0.7904-0.0921-0.0927-0.0939-0.0589-0.0316-0.03360.1438
M-score -3.00-2.76-6.33-2.95-2.74-2.94-2.74-2.56-2.90-1.97

Symantec Corp Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 0.831.61251.51962.0712.16710.55690.74450.87990.35870.8677
GMI 1.00491.02341.0231.02041.03290.9890.98480.98720.97140.9885
AQI 1.02551.0410.97950.97480.98661.03671.0031.01380.62240.6312
SGI 0.99420.60570.60590.60840.5081.24811.18441.16161.39110.9153
DEPI 1.12421.46481.63841.60611.83550.91731.01731.05630.73981.1333
SGAI 0.94411.11531.10511.09991.2360.86860.87480.89260.78470.9164
LVGI 0.86780.89530.96330.96720.9690.99080.98410.97661.02221.132
TATA -0.0469-0.0309-0.0231-0.0205-0.0272-0.0336-0.0437-0.0489-0.03460.1444
M-score -2.78-2.32-2.39-1.88-1.89-2.80-2.73-2.64-3.05-2.17
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