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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: -0.95
Current: -2.77

-6.57
-0.95

During the past 13 years, the highest Beneish M-Score of Symantec Corp was -0.95. 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 * 0.83+0.528 * 1.0049+0.404 * 1.0255+0.892 * 0.9942+0.115 * 1.1242
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9198+4.679 * -0.0462-0.327 * 0.8678
=-2.77

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

This Year (Dec13) TTM:Last Year (Dec12) TTM:
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 $2,971 Mil.
Total Current Liabilities was $4,149 Mil.
Long-Term Debt was $2,094 Mil.
Net Income was 283 + 241 + 157 + 200 = $881 Mil.
Non Operating Income was -1 + 20 + 18 + 12 = $49 Mil.
Cash Flow from Operations was 329 + 191 + 312 + 612 = $1,444 Mil.
Accounts Receivable was $1,081 Mil.
Revenue was 1791 + 1699 + 1668 + 1681 = $6,839 Mil.
Gross Profit was 1492 + 1415 + 1384 + 1394 = $5,685 Mil.
Total Current Assets was $5,816 Mil.
Total Assets was $13,962 Mil.
Property, Plant and Equipment(Net PPE) was $1,130 Mil.
Depreciation, Depletion and Amortization(DDA) was $650 Mil.
Selling, General & Admin. Expense(SGA) was $3,249 Mil.
Total Current Liabilities was $5,482 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)
=(892 / 6799) / (1081 / 6839)
=0.13119576 / 0.15806404
=0.83

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)
=(1353 / 6839) / (1422 / 6799)
=0.83126188 / 0.82718047
=1.0049

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 - (5316 + 1110) / 13258) / (1 - (5816 + 1130) / 13962)
=0.51531151 / 0.5025068
=1.0255

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
=6799 / 6839
=0.9942

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))
=(650 / (650 + 1130)) / (534 / (534 + 1110))
=0.36516854 / 0.32481752
=1.1242

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)
=(2971 / 6799) / (3249 / 6839)
=0.43697603 / 0.47506945
=0.9198

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)
=((2094 + 4149) / 13258) / ((2094 + 5482) / 13962)
=0.4708855 / 0.54261567
=0.8678

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
=(881 - 49 - 1444) / 13258
=-0.0462

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

Mar04Mar05Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13
DSRI 1.30270.79721.46580.79221.00621.05451.05091.14420.85351.0689
GMI 0.99680.99991.08120.99590.96710.98970.98170.9810.99041.0113
AQI 0.95920.99112.65210.97271.04140.81060.88231.06930.9910.8626
SGI 1.32921.38111.60421.25491.12981.04690.97321.03431.08721.0262
DEPI 0.94340.94690.61930.94640.94440.92211.12331.14851.01861.0276
SGAI 0.94780.92221.12021.07171.0520.94351.02381.07110.99270.9547
LVGI 0.92520.71550.64071.57231.06831.52181.01221.07690.92921.0594
TATA -0.1188-0.1197-0.0768-0.072-0.0784-0.7957-0.0921-0.0903-0.0939-0.0595
M-score -2.45-2.79-1.11-3.00-2.76-6.36-2.94-2.74-2.96-2.73

Symantec Corp Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DSRI 0.92230.93020.85350.88281.03531.0531.06891.15210.76580.83
GMI 0.98290.98180.99041.00241.00771.01241.01131.00881.00781.0049
AQI 0.99760.99780.9910.85520.85330.84480.86260.97931.00021.0255
SGI 1.10331.11141.08721.05231.0231.01741.02621.02991.0180.9942
DEPI 0.98891.03421.01861.02321.0321.03711.02761.01551.06011.1242
SGAI 1.04261.01540.99310.99390.98510.98870.95470.94650.94430.9198
LVGI 0.95210.94290.92921.05651.05681.06731.05940.90090.8810.8678
TATA -0.1022-0.0871-0.0939-0.0812-0.0726-0.0776-0.0595-0.0649-0.0646-0.0462
M-score -2.94-2.84-2.96-2.99-2.83-2.85-2.73-2.58-2.92-2.77
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