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Symantec Corp (NAS:SYMC)
Beneish M-Score
-2.77 (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 -2.77 suggests that the company is not a manipulator.

SYMC' s 10-Year Beneish M-Score Range
Min: -6.57   Max: -1.01
Current: -2.77

-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 -2.78.


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 * 0.9422+0.528 * 1.0028+0.404 * 1.003+0.892 * 0.9358+0.115 * 1.0845
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9616+4.679 * -0.0437-0.327 * 0.9841
=-2.77

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

This Year (Jun15) TTM:Last Year (Jun14) TTM:
Accounts Receivable was $604 Mil.
Revenue was 1499 + 1518 + 1638 + 1617 = $6,272 Mil.
Gross Profit was 1245 + 1231 + 1359 + 1339 = $5,174 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 $425 Mil.
Selling, General & Admin. Expense(SGA) was $2,572 Mil.
Total Current Liabilities was $4,064 Mil.
Long-Term Debt was $1,741 Mil.
Net Income was 117 + 176 + 222 + 244 = $759 Mil.
Non Operating Income was -11 + 7 + 2 + 1 = $-1 Mil.
Cash Flow from Operations was 300 + 488 + 358 + 173 = $1,319 Mil.
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 $2,858 Mil.
Total Current Liabilities was $3,979 Mil.
Long-Term Debt was $2,095 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)
=(604 / 6272) / (685 / 6702)
=0.09630102 / 0.1022083
=0.9422

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)
=(1231 / 6702) / (1245 / 6272)
=0.82721576 / 0.82493622
=1.0028

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 - (5022 + 1201) / 12784) / (1 - (5288 + 1140) / 13164)
=0.51321965 / 0.51169857
=1.003

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
=6272 / 6702
=0.9358

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))
=(451 / (451 + 1140)) / (425 / (425 + 1201))
=0.28346952 / 0.26137761
=1.0845

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)
=(2572 / 6272) / (2858 / 6702)
=0.41007653 / 0.42643987
=0.9616

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)
=((1741 + 4064) / 12784) / ((2095 + 3979) / 13164)
=0.45408323 / 0.46140991
=0.9841

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
=(759 - -1 - 1319) / 12784
=-0.0437

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 -2.77 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

Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14Mar15
DSRI 1.46580.79221.00621.05451.05091.14420.85351.08750.9931.0116
GMI 1.08120.99590.96710.98970.98170.9810.99041.01131.00241.0061
AQI 2.65210.97271.04140.81060.88231.06930.9910.86261.03590.9982
SGI 1.60421.25491.12981.04690.97321.03431.08721.02620.96670.9748
DEPI 0.61930.94640.94440.92211.04451.22921.02061.03061.18641.1442
SGAI 1.12021.07171.0520.94351.02381.07110.99270.95470.93540.9624
LVGI 0.64071.57231.06831.52181.01221.07690.92921.05940.88790.9908
TATA -0.0768-0.072-0.0784-0.7957-0.0921-0.0927-0.0959-0.0595-0.0316-0.0336
M-score -1.11-3.00-2.76-6.36-2.95-2.74-2.97-2.71-2.58-2.62

Symantec Corp Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 1.08751.15210.76580.830.9930.95441.29831.13151.01160.9422
GMI 1.01131.00881.00781.00491.00241.00160.99931.00091.00611.0028
AQI 0.86260.97931.00021.02551.03590.97950.97480.98660.99821.003
SGI 1.02621.02991.0180.99420.96670.96470.97050.97290.97480.9358
DEPI 1.03061.02251.06111.12421.18641.28581.26031.18471.14421.0845
SGAI 0.95470.95770.96050.93230.93570.92690.92390.94880.96210.9616
LVGI 1.05940.90090.8810.86780.88790.96330.96720.9690.99080.9841
TATA -0.0595-0.0659-0.0658-0.0471-0.0316-0.0238-0.0212-0.0279-0.0336-0.0437
M-score -2.71-2.58-2.93-2.78-2.58-2.61-2.29-2.48-2.62-2.77
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