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Symantec Corp (NAS:SYMC)
Beneish M-Score
-2.61 (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 -2.61 suggests that the company is not a manipulator.

SYMC' s 10-Year Beneish M-Score Range
Min: -6.57   Max: -1.01
Current: -2.61

-6.57
-1.01

During the past 13 years, the highest Beneish M-Score of Symantec Corp was -1.01. The lowest was -6.57. 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 * 0.9544+0.528 * 1.0016+0.404 * 0.9795+0.892 * 0.9647+0.115 * 1.2883
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9269+4.679 * -0.0238-0.327 * 0.9633
=-2.61

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was $685 Mil.
Revenue was 1735 + 1625 + 1705 + 1637 = $6,702 Mil.
Gross Profit was 1426 + 1343 + 1422 + 1353 = $5,544 Mil.
Total Current Assets was $5,288 Mil.
Total Assets was $13,164 Mil.
Property, Plant and Equipment(Net PPE) was $1,140 Mil.
Depreciation, Depletion and Amortization(DDA) was $451 Mil.
Selling, General & Admin. Expense(SGA) was $2,857 Mil.
Total Current Liabilities was $3,979 Mil.
Long-Term Debt was $2,095 Mil.
Net Income was 236 + 217 + 283 + 241 = $977 Mil.
Non Operating Income was 1 + 8 + -1 + 20 = $28 Mil.
Cash Flow from Operations was 293 + 449 + 329 + 191 = $1,262 Mil.
Accounts Receivable was $744 Mil.
Revenue was 1709 + 1748 + 1791 + 1699 = $6,947 Mil.
Gross Profit was 1409 + 1440 + 1492 + 1415 = $5,756 Mil.
Total Current Assets was $5,179 Mil.
Total Assets was $13,151 Mil.
Property, Plant and Equipment(Net PPE) was $1,102 Mil.
Depreciation, Depletion and Amortization(DDA) was $634 Mil.
Selling, General & Admin. Expense(SGA) was $3,195 Mil.
Total Current Liabilities was $4,205 Mil.
Long-Term Debt was $2,094 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)
=(685 / 6702) / (744 / 6947)
=0.1022083 / 0.10709659
=0.9544

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)
=(1343 / 6947) / (1426 / 6702)
=0.82855909 / 0.82721576
=1.0016

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 - (5288 + 1140) / 13164) / (1 - (5179 + 1102) / 13151)
=0.51169857 / 0.52239373
=0.9795

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
=6702 / 6947
=0.9647

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))
=(634 / (634 + 1102)) / (451 / (451 + 1140))
=0.36520737 / 0.28346952
=1.2883

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)
=(2857 / 6702) / (3195 / 6947)
=0.42629066 / 0.45991075
=0.9269

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)
=((2095 + 3979) / 13164) / ((2094 + 4205) / 13151)
=0.46140991 / 0.47897498
=0.9633

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
=(977 - 28 - 1262) / 13164
=-0.0238

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 -2.61 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

Mar05Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14
DSRI 0.79721.46580.79221.00621.05451.05091.14420.85351.06891.0104
GMI 0.99991.08120.99590.96710.98970.98180.9810.99041.01131.0024
AQI 0.99112.65210.97271.04140.81050.88231.06930.9910.85841.041
SGI 1.38111.60421.25491.12981.04690.97321.03431.08721.02620.9667
DEPI 0.94690.61930.94640.94440.9760.98681.22921.02351.02761.1864
SGAI 0.92221.12021.07171.0520.94341.02391.07110.99270.95980.9304
LVGI 0.71550.64071.57231.06831.61740.95241.07690.92921.05060.8953
TATA -0.1197-0.0768-0.072-0.0784-0.7898-0.0921-0.0927-0.0939-0.0596-0.0316
M-score -2.79-1.11-3.00-2.76-6.36-2.94-2.74-2.96-2.73-2.56

Symantec Corp Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 0.85350.88281.03531.0531.06891.15210.76580.831.01040.9544
GMI 0.99041.00241.00771.01241.01131.00881.00781.00491.00241.0016
AQI 0.9910.85520.85330.84480.85840.97931.00021.02551.0410.9795
SGI 1.08721.05231.0231.01741.02621.02991.0180.99420.96670.9647
DEPI 0.70170.91210.98291.04511.03061.01851.06111.12421.18641.2883
SGAI 0.99270.99360.98480.98840.95980.95190.94980.92540.93070.9269
LVGI 0.92921.05651.05681.06731.05060.90090.8810.86780.89530.9633
TATA -0.0959-0.0823-0.0726-0.0776-0.0596-0.0657-0.0654-0.0469-0.0316-0.0238
M-score -3.00-3.01-2.84-2.85-2.73-2.58-2.93-2.78-2.56-2.61
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