Switch to:
Symantec Corp (NAS:SYMC)
Beneish M-Score
-2.56 (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 -2.56 suggests that the company is not a manipulator.

SYMC' s 10-Year Beneish M-Score Range
Min: -6.36   Max: -1.11
Current: -2.56

-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 -2.77.


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 * 1.0104+0.528 * 1.0024+0.404 * 1.041+0.892 * 0.9667+0.115 * 1.1864
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9307+4.679 * -0.0316-0.327 * 0.8953
=-2.56

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

This Year (Mar14) TTM:Last Year (Mar13) TTM:
Accounts Receivable was $1,007 Mil.
Revenue was 1625 + 1705 + 1637 + 1709 = $6,676 Mil.
Gross Profit was 1343 + 1422 + 1353 + 1409 = $5,527 Mil.
Total Current Assets was $5,652 Mil.
Total Assets was $13,539 Mil.
Property, Plant and Equipment(Net PPE) was $1,116 Mil.
Depreciation, Depletion and Amortization(DDA) was $491 Mil.
Selling, General & Admin. Expense(SGA) was $2,881 Mil.
Total Current Liabilities was $4,306 Mil.
Long-Term Debt was $2,095 Mil.
Net Income was 217 + 283 + 241 + 157 = $898 Mil.
Non Operating Income was 8 + -1 + 20 + 18 = $45 Mil.
Cash Flow from Operations was 449 + 329 + 191 + 312 = $1,281 Mil.
Accounts Receivable was $1,031 Mil.
Revenue was 1748 + 1791 + 1699 + 1668 = $6,906 Mil.
Gross Profit was 1440 + 1492 + 1415 + 1384 = $5,731 Mil.
Total Current Assets was $6,416 Mil.
Total Assets was $14,508 Mil.
Property, Plant and Equipment(Net PPE) was $1,122 Mil.
Depreciation, Depletion and Amortization(DDA) was $638 Mil.
Selling, General & Admin. Expense(SGA) was $3,202 Mil.
Total Current Liabilities was $5,567 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)
=(1007 / 6676) / (1031 / 6906)
=0.15083883 / 0.14929047
=1.0104

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)
=(1422 / 6906) / (1343 / 6676)
=0.82985809 / 0.82789095
=1.0024

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 - (5652 + 1116) / 13539) / (1 - (6416 + 1122) / 14508)
=0.50011079 / 0.48042459
=1.041

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
=6676 / 6906
=0.9667

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))
=(638 / (638 + 1122)) / (491 / (491 + 1116))
=0.3625 / 0.30553827
=1.1864

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)
=(2881 / 6676) / (3202 / 6906)
=0.43154584 / 0.46365479
=0.9307

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 + 4306) / 13539) / ((2094 + 5567) / 14508)
=0.47278233 / 0.52805349
=0.8953

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
=(898 - 45 - 1281) / 13539
=-0.0316

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 -2.56 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 0.99991.08120.99590.96710.98970.98170.9810.99041.01131.0024
AQI 0.99112.65210.97271.04140.81060.88231.06930.9910.85841.041
SGI 1.38111.60421.25491.12981.04690.97321.03431.08721.02620.9667
DEPI 0.94690.61930.94640.94440.92211.12331.14851.01861.02761.1864
SGAI 0.92221.12021.07171.0520.94351.02381.07110.99270.95980.9304
LVGI 0.71550.64071.57231.06831.52181.01221.07690.92921.05060.8953
TATA -0.1197-0.0768-0.072-0.0784-0.7957-0.0921-0.0903-0.0939-0.0596-0.0316
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

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
DSRI 0.93020.85350.88281.03531.0531.06891.15210.76580.831.0104
GMI 0.98180.99041.00241.00771.01241.01131.00881.00781.00491.0024
AQI 0.99780.9910.85520.85330.84480.85840.97931.00021.02551.041
SGI 1.11141.08721.05231.0231.01741.02621.02991.0180.99420.9667
DEPI 1.03421.01861.02321.0321.03711.02761.01551.06011.12421.1864
SGAI 1.01540.99310.99390.98510.98870.95980.95190.94980.92540.9307
LVGI 0.94290.92921.05651.05681.06731.05060.90090.8810.86780.8953
TATA -0.0871-0.0939-0.0812-0.0726-0.0776-0.0596-0.0657-0.0654-0.0469-0.0316
M-score -2.84-2.96-2.99-2.83-2.85-2.73-2.58-2.93-2.78-2.56
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Email Hide