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Symantec Corp (NAS:SYMC)
Beneish M-Score
-2.62 (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 -2.62 suggests that the company is not a manipulator.

SYMC' s 10-Year Beneish M-Score Range
Min: -6.34   Max: -1.11
Current: -2.62

-6.34
-1.11

During the past 13 years, the highest Beneish M-Score of Symantec Corp was -1.11. The lowest was -6.34. 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 * 1.0116+0.528 * 1.0061+0.404 * 0.9982+0.892 * 0.9748+0.115 * 1.1442
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9607+4.679 * -0.0336-0.327 * 0.9908
=-2.62

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
Accounts Receivable was $993 Mil.
Revenue was 1518 + 1638 + 1617 + 1735 = $6,508 Mil.
Gross Profit was 1231 + 1359 + 1339 + 1426 = $5,355 Mil.
Total Current Assets was $5,422 Mil.
Total Assets was $13,233 Mil.
Property, Plant and Equipment(Net PPE) was $1,205 Mil.
Depreciation, Depletion and Amortization(DDA) was $439 Mil.
Selling, General & Admin. Expense(SGA) was $2,702 Mil.
Total Current Liabilities was $4,453 Mil.
Long-Term Debt was $1,746 Mil.
Net Income was 176 + 222 + 244 + 236 = $878 Mil.
Non Operating Income was 7 + 2 + 1 + 1 = $11 Mil.
Cash Flow from Operations was 488 + 358 + 173 + 293 = $1,312 Mil.
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 $2,885 Mil.
Total Current Liabilities was $4,306 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)
=(993 / 6508) / (1007 / 6676)
=0.15258144 / 0.15083883
=1.0116

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)
=(1359 / 6676) / (1231 / 6508)
=0.82789095 / 0.82283344
=1.0061

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 - (5422 + 1205) / 13233) / (1 - (5652 + 1116) / 13539)
=0.49920653 / 0.50011079
=0.9982

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
=6508 / 6676
=0.9748

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))
=(491 / (491 + 1116)) / (439 / (439 + 1205))
=0.30553827 / 0.26703163
=1.1442

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)
=(2702 / 6508) / (2885 / 6676)
=0.41518132 / 0.432145
=0.9607

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)
=((1746 + 4453) / 13233) / ((2095 + 4306) / 13539)
=0.46845009 / 0.47278233
=0.9908

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
=(878 - 11 - 1312) / 13233
=-0.0336

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 -2.62 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 1.46580.79221.00621.05451.05091.14420.86891.04991.01041.0116
GMI 1.08120.99590.96710.98970.98170.9810.99041.01131.00241.0061
AQI 2.65210.97271.04140.81060.88231.06930.9910.85841.0410.9982
SGI 1.60421.25491.12981.04690.97321.03431.08721.02620.96670.9748
DEPI 0.61930.94640.94440.92211.12331.14851.01861.02761.18641.1442
SGAI 1.12021.07171.0520.94351.02381.07110.99270.95980.9320.9607
LVGI 0.64071.57231.06831.52181.01221.07690.92921.05060.89530.9908
TATA -0.0768-0.072-0.0784-0.7957-0.0921-0.0903-0.0939-0.0596-0.0316-0.0336
M-score -1.11-3.00-2.76-6.36-2.94-2.74-2.94-2.75-2.56-2.62

Symantec Corp Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 1.0531.04991.15210.76580.831.01040.95441.29831.13151.0116
GMI 1.01241.01131.00881.00781.00491.00241.00160.99931.00091.0061
AQI 0.84480.85840.97931.00021.02551.0410.97950.97480.98660.9982
SGI 1.01741.02621.02991.0180.99420.96670.96470.97050.97290.9748
DEPI 1.03711.02761.01551.06011.12421.18641.28831.26031.18471.1442
SGAI 0.98870.95980.95190.94980.92630.9320.92820.92750.94880.9607
LVGI 1.06731.05060.90090.8810.86780.89530.96330.96720.9690.9908
TATA -0.0776-0.0596-0.0657-0.0654-0.0469-0.0316-0.0238-0.0212-0.0279-0.0336
M-score -2.85-2.75-2.58-2.93-2.78-2.56-2.61-2.29-2.48-2.62
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