Switch to:
Symantec Corp (NAS:SYMC)
Beneish M-Score
-2.48 (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 -2.48 suggests that the company is not a manipulator.

SYMC' s 10-Year Beneish M-Score Range
Min: -6.57   Max: -1.01
Current: -2.48

-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 * 1.1315+0.528 * 1.0009+0.404 * 0.9866+0.892 * 0.9729+0.115 * 1.1847
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9471+4.679 * -0.0279-0.327 * 0.969
=-2.48

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
Accounts Receivable was $982 Mil.
Revenue was 1638 + 1617 + 1735 + 1625 = $6,615 Mil.
Gross Profit was 1359 + 1339 + 1426 + 1343 = $5,467 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 $448 Mil.
Selling, General & Admin. Expense(SGA) was $2,757 Mil.
Total Current Liabilities was $4,233 Mil.
Long-Term Debt was $1,745 Mil.
Net Income was 222 + 244 + 236 + 217 = $919 Mil.
Non Operating Income was 2 + 1 + 1 + 8 = $12 Mil.
Cash Flow from Operations was 358 + 173 + 293 + 449 = $1,273 Mil.
Accounts Receivable was $892 Mil.
Revenue was 1705 + 1637 + 1709 + 1748 = $6,799 Mil.
Gross Profit was 1422 + 1353 + 1409 + 1440 = $5,624 Mil.
Total Current Assets was $5,316 Mil.
Total Assets was $13,258 Mil.
Property, Plant and Equipment(Net PPE) was $1,110 Mil.
Depreciation, Depletion and Amortization(DDA) was $534 Mil.
Selling, General & Admin. Expense(SGA) was $2,992 Mil.
Total Current Liabilities was $4,149 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)
=(982 / 6615) / (892 / 6799)
=0.14845049 / 0.13119576
=1.1315

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)
=(1339 / 6799) / (1359 / 6615)
=0.82718047 / 0.82645503
=1.0009

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 - (5255 + 1186) / 13102) / (1 - (5316 + 1110) / 13258)
=0.50839566 / 0.51531151
=0.9866

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
=6615 / 6799
=0.9729

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))
=(534 / (534 + 1110)) / (448 / (448 + 1186))
=0.32481752 / 0.27417381
=1.1847

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)
=(2757 / 6615) / (2992 / 6799)
=0.41678005 / 0.44006472
=0.9471

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)
=((1745 + 4233) / 13102) / ((2094 + 4149) / 13258)
=0.45626622 / 0.4708855
=0.969

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
=(919 - 12 - 1273) / 13102
=-0.0279

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 -2.48 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 0.79721.46580.79221.00621.05451.05091.14420.86891.04991.0104
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 -2.79-1.11-3.00-2.76-6.36-2.94-2.74-2.94-2.75-2.56

Symantec Corp Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 1.03531.0531.04991.15210.76580.831.01040.95441.29831.1315
GMI 1.00771.01241.01131.00881.00781.00491.00241.00160.99931.0009
AQI 0.85330.84480.85840.97931.00021.02551.0410.97950.97480.9866
SGI 1.0231.01741.02621.02991.0180.99420.96670.96470.97050.9729
DEPI 1.0321.03711.02761.01551.06011.12421.18641.28831.26031.1847
SGAI 0.98510.98870.95980.95190.94980.92630.93040.92660.92590.9471
LVGI 1.05681.06731.05060.90090.8810.86780.89530.96330.96720.969
TATA -0.0726-0.0776-0.0596-0.0657-0.0654-0.0469-0.0316-0.0238-0.0212-0.0279
M-score -2.83-2.85-2.75-2.58-2.93-2.78-2.56-2.61-2.29-2.48
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