Science Applications International (FRA:85S) Beneish M-Score : -2.63 (As of Apr. 28, 2024)

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What is Science Applications International Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.63 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Science Applications International's Beneish M-Score or its related term are showing as below:

FRA:85S' s Beneish M-Score Range Over the Past 10 Years
Min: -3.13 Med: -2.66 Max: -1.76
Current: -2.63

During the past 13 years, the highest Beneish M-Score of Science Applications International was -1.76. The lowest was -3.13. And the median was -2.66.

Science Applications International Beneish M-Score Historical Data

The historical data trend for Science Applications International's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Science Applications International Beneish M-Score Chart

Science Applications International Annual Data

Trend

Jan15

Jan16

Jan17

Jan18

Jan19

Jan20

Jan21

Jan22

Jan23

Jan24

Beneish M-Score

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-2.69

-2.97

-2.58

-2.72

-2.63

Science Applications International Quarterly Data
	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
Beneish M-Score	Get a 7-Day Free Trial															-2.72	-2.73	-2.54	-2.50	-2.63

Competitive Comparison of Science Applications International's Beneish M-Score

For the Information Technology Services subindustry, Science Applications International's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Science Applications International's Beneish M-Score Distribution in the Software Industry

For the Software industry and Technology sector, Science Applications International's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Science Applications International's Beneish M-Score falls into.

Science Applications International Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski 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 Science Applications International for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 1.045

0.528 * 0.9844

0.404 * 1.0034

0.892 * 0.9244

0.115 * 1.0677

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0326

4.679 * -0.029889

0.327 * 0.9584

-2.64

This Year (Jan24) TTM:

Last Year (Jan23) TTM:

Total Receivables was €839 Mil.
Revenue was 1594.566 + 1794.565 + 1612.736 + 1849.536 = €6,851 Mil.
Gross Profit was 176.256 + 216.863 + 195.264 + 214.32 = €803 Mil.
Total Current Assets was €1,038 Mil.
Total Assets was €4,878 Mil.
Property, Plant and Equipment(Net PPE) was €223 Mil.
Depreciation, Depletion and Amortization(DDA) was €131 Mil.
Selling, General, & Admin. Expense(SGA) was €343 Mil.
Total Current Liabilities was €1,063 Mil.
Long-Term Debt & Capital Lease Obligation was €1,991 Mil.
Net Income was 35.802 + 88.071 + 223.288 + 89.376 = €437 Mil.
Non Operating Income was 212.976 + 1.894 + 4.52 + -0.912 = €218 Mil.
Cash Flow from Operations was 57.834 + 95.647 + 135.6 + 74.784 = €364 Mil.

Total Receivables was €869 Mil.
Revenue was 1826.304 + 1937.635 + 1799.873 + 1848.296 = €7,412 Mil.
Gross Profit was 206.016 + 224.315 + 215.277 + 209.276 = €855 Mil.
Total Current Assets was €1,111 Mil.
Total Assets was €5,144 Mil.
Property, Plant and Equipment(Net PPE) was €232 Mil.
Depreciation, Depletion and Amortization(DDA) was €151 Mil.
Selling, General, & Admin. Expense(SGA) was €360 Mil.
Total Current Liabilities was €1,045 Mil.
Long-Term Debt & Capital Lease Obligation was €2,315 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total 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)
	=	(839.052 / 6851.403)	/	(868.608 / 7412.108)
	=	0.122464	/	0.117188
	=	1.045

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)
	=	(854.884 / 7412.108)	/	(802.703 / 6851.403)
	=	0.115336	/	0.117159
	=	0.9844

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 Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (1038.258 + 223.074) / 4878.252)	/	(1 - (1110.816 + 232) / 5143.904)
	=	0.741438	/	0.73895
	=	1.0034

4. SGI = Sales Growth Index

Ratio of Revenue 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
	=	6851.403	/	7412.108
	=	0.9244

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization 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))
	=	(151.033 / (151.033 + 232))	/	(130.622 / (130.622 + 223.074))
	=	0.394308	/	0.369306
	=	1.0677

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales 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)
	=	(343.201 / 6851.403)	/	(359.572 / 7412.108)
	=	0.050092	/	0.048511
	=	1.0326

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 in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((1991.142 + 1063.044) / 4878.252)	/	((2315.36 + 1044.928) / 5143.904)
	=	0.626082	/	0.653256
	=	0.9584

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
	=	(436.537 - 218.478	-	363.865)	/	4878.252
	=	-0.029889

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Science Applications International has a M-score of -2.64 suggests that the company is unlikely to be a manipulator.

Science Applications International Beneish M-Score Related Terms

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Science Applications International (FRA:85S) Business Description

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SAIC:USA

Address

12010 Sunset Hills Road, Reston, VA, USA, 20190

Website

https://www.saic.com

Science Applications International Corp provides technical, engineering and enterprise IT services primarily to the U.S. government. Specifically, the company offers engineering, systems integration and information technology for large government projects and a broad range of services with an emphasis on higher-end technology services. The company's end-to-end enterprise IT offerings span the entire spectrum of customers' IT infrastructure.

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