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Symantec Corp (NAS:SYMC)
Beneish M-Score
-2.24 (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 -2.24 suggests that the company is not a manipulator.

SYMC' s Beneish M-Score Range Over the Past 10 Years
Min: -6.57   Max: -1.01
Current: -2.24

-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 * 0.6291+0.528 * 0.9975+0.404 * 1.0699+0.892 * 0.9886+0.115 * 0.6584
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9144+4.679 * 0.1504-0.327 * 1.3625
=-2.24

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $459 Mil.
Revenue was 979 + 884 + 873 + 909 = $3,645 Mil.
Gross Profit was 769 + 735 + 726 + 759 = $2,989 Mil.
Total Current Assets was $6,469 Mil.
Total Assets was $16,864 Mil.
Property, Plant and Equipment(Net PPE) was $933 Mil.
Depreciation, Depletion and Amortization(DDA) was $351 Mil.
Selling, General & Admin. Expense(SGA) was $1,619 Mil.
Total Current Liabilities was $3,509 Mil.
Long-Term Debt was $6,576 Mil.
Net Income was -144 + 135 + 2045 + 170 = $2,206 Mil.
Non Operating Income was 10 + 13 + 3 + -1 = $25 Mil.
Cash Flow from Operations was 55 + -772 + 250 + 112 = $-355 Mil.
Accounts Receivable was $738 Mil.
Revenue was 906 + 912 + 899 + 970 = $3,687 Mil.
Gross Profit was 746 + 754 + 723 + 793 = $3,016 Mil.
Total Current Assets was $4,664 Mil.
Total Assets was $12,460 Mil.
Property, Plant and Equipment(Net PPE) was $1,262 Mil.
Depreciation, Depletion and Amortization(DDA) was $277 Mil.
Selling, General & Admin. Expense(SGA) was $1,791 Mil.
Total Current Liabilities was $3,729 Mil.
Long-Term Debt was $1,740 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)
=(459 / 3645) / (738 / 3687)
=0.12592593 / 0.20016273
=0.6291

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)
=(3016 / 3687) / (2989 / 3645)
=0.81800922 / 0.82002743
=0.9975

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 - (6469 + 933) / 16864) / (1 - (4664 + 1262) / 12460)
=0.56107685 / 0.52439807
=1.0699

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
=3645 / 3687
=0.9886

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))
=(277 / (277 + 1262)) / (351 / (351 + 933))
=0.179987 / 0.27336449
=0.6584

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)
=(1619 / 3645) / (1791 / 3687)
=0.4441701 / 0.48576078
=0.9144

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)
=((6576 + 3509) / 16864) / ((1740 + 3729) / 12460)
=0.59801945 / 0.43892456
=1.3625

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
=(2206 - 25 - -355) / 16864
=0.1504

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 -2.24 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 local exchange's currency.

Symantec Corp Annual Data

Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14Mar15Mar16
DSRI 0.79221.00621.05451.05091.14420.86891.04991.61250.7350.8728
GMI 0.99590.96710.98970.98170.9810.99041.01131.02340.99350.9844
AQI 0.97271.04140.81060.88231.06930.9910.85841.0411.03670.6312
SGI 1.25491.12981.04690.97321.03431.08721.02620.60570.94570.91
DEPI 0.94640.94440.92211.12331.14851.01861.02761.46480.91731.1333
SGAI 1.07171.0520.94351.02381.07110.98510.97751.11530.97320.8668
LVGI 1.57231.06831.52181.01221.07690.92921.05060.89530.99081.132
TATA -0.072-0.0784-0.7957-0.0921-0.0903-0.0927-0.0596-0.0309-0.03390.1438
M-score -3.00-2.76-6.36-2.94-2.74-2.94-2.75-2.32-2.92-2.17

Symantec Corp Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 1.51962.0712.16710.55690.84391.16130.47531.15190.64010.6291
GMI 1.0231.02041.03290.9890.9870.99080.97380.98890.98830.9975
AQI 0.97950.97480.98661.03671.0031.01380.62240.63120.64671.0699
SGI 0.60590.60840.5081.24811.04490.88021.04980.68950.81220.9886
DEPI 1.63841.60611.83550.91731.08091.20480.73981.13330.84030.6584
SGAI 1.10511.09991.2360.86860.90610.96260.83880.97110.92510.9144
LVGI 0.96330.96720.9690.99080.98410.97661.02221.1321.13211.3625
TATA -0.0231-0.0205-0.0272-0.0336-0.0441-0.0494-0.03520.14380.23960.1504
M-score -2.39-1.88-1.89-2.80-2.76-2.63-3.26-2.12-2.06-2.24
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