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Symantec Corp (NAS:SYMC)
Beneish M-Score
-2.01 (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 -2.01 signals that the company is a manipulator.

SYMC' s Beneish M-Score Range Over the Past 10 Years
Min: -6.57   Max: -1.01
Current: -2.01

-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 * 0.5491+0.528 * 0.9893+0.404 * 0.6467+0.892 * 0.9468+0.115 * 0.8403
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9009+4.679 * 0.2398-0.327 * 1.1321
=-2.01

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $314 Mil.
Revenue was 884 + 873 + 909 + 1498 = $4,164 Mil.
Gross Profit was 735 + 726 + 759 + 1234 = $3,454 Mil.
Total Current Assets was $6,799 Mil.
Total Assets was $11,530 Mil.
Property, Plant and Equipment(Net PPE) was $904 Mil.
Depreciation, Depletion and Amortization(DDA) was $294 Mil.
Selling, General & Admin. Expense(SGA) was $1,746 Mil.
Total Current Liabilities was $3,322 Mil.
Long-Term Debt was $2,605 Mil.
Net Income was 135 + 2045 + 170 + 156 = $2,506 Mil.
Non Operating Income was 13 + 3 + -1 + 2 = $17 Mil.
Cash Flow from Operations was -772 + 250 + 112 + 134 = $-276 Mil.
Accounts Receivable was $604 Mil.
Revenue was 912 + 899 + 970 + 1617 = $4,398 Mil.
Gross Profit was 754 + 723 + 793 + 1339 = $3,609 Mil.
Total Current Assets was $5,022 Mil.
Total Assets was $12,784 Mil.
Property, Plant and Equipment(Net PPE) was $1,201 Mil.
Depreciation, Depletion and Amortization(DDA) was $312 Mil.
Selling, General & Admin. Expense(SGA) was $2,047 Mil.
Total Current Liabilities was $4,064 Mil.
Long-Term Debt was $1,741 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)
=(314 / 4164) / (604 / 4398)
=0.07540826 / 0.13733515
=0.5491

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)
=(3609 / 4398) / (3454 / 4164)
=0.82060027 / 0.82949087
=0.9893

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 - (6799 + 904) / 11530) / (1 - (5022 + 1201) / 12784)
=0.33191674 / 0.51321965
=0.6467

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
=4164 / 4398
=0.9468

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))
=(312 / (312 + 1201)) / (294 / (294 + 904))
=0.20621282 / 0.24540902
=0.8403

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)
=(1746 / 4164) / (2047 / 4398)
=0.41930836 / 0.46543884
=0.9009

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)
=((2605 + 3322) / 11530) / ((1741 + 4064) / 12784)
=0.5140503 / 0.45408323
=1.1321

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
=(2506 - 17 - -276) / 11530
=0.2398

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 -2.01 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 0.79221.00621.05451.05091.14420.86891.04991.61250.7350.8728
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

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 1.61251.51962.0712.16710.55690.84391.00070.40860.98930.5491
GMI 1.02341.0231.02041.03290.9890.9870.98970.97340.98970.9893
AQI 1.0410.97950.97480.98661.03671.0031.01380.62240.63120.6467
SGI 0.60570.60590.60840.5081.24811.04491.02151.22120.80290.9468
DEPI 1.46481.63841.60611.83550.91731.08091.05630.73981.13330.8403
SGAI 1.11531.10511.09991.2360.86860.90610.92570.81070.94330.9009
LVGI 0.89530.96330.96720.9690.99080.98410.97661.02221.1321.1321
TATA -0.0309-0.0231-0.0205-0.0272-0.0336-0.0441-0.0493-0.0350.1440.2398
M-score -2.32-2.39-1.88-1.89-2.80-2.76-2.66-3.16-2.16-2.01
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