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Science Applications International (LTS:0V9N) Beneish M-Score : -2.78 (As of Oct. 31, 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 -2.78 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:

LTS:0V9N' s Beneish M-Score Range Over the Past 10 Years
Min: -3.26   Med: -2.69   Max: -1.76
Current: -2.78

During the past 13 years, the highest Beneish M-Score of Science Applications International was -1.76. The lowest was -3.26. And the median was -2.69.


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.

* Premium members only.

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
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.69 -2.97 -2.58 -2.72 -2.84

Science Applications International Quarterly Data
Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.74 -2.69 -2.84 -2.86 -2.78

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:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1.0405+0.528 * 1.0052+0.404 * 1.0341+0.892 * 0.949+0.115 * 1.1324
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0596+4.679 * -0.064571-0.327 * 1.0364
=-2.78

* 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.

This Year (Jul24) TTM:Last Year (Jul23) TTM:
Total Receivables was $946 Mil.
Revenue was 1818 + 1847 + 1737 + 1895 = $7,297 Mil.
Gross Profit was 210 + 213 + 192 + 229 = $844 Mil.
Total Current Assets was $1,103 Mil.
Total Assets was $5,250 Mil.
Property, Plant and Equipment(Net PPE) was $263 Mil.
Depreciation, Depletion and Amortization(DDA) was $139 Mil.
Selling, General, & Admin. Expense(SGA) was $363 Mil.
Total Current Liabilities was $1,292 Mil.
Long-Term Debt & Capital Lease Obligation was $2,128 Mil.
Net Income was 81 + 77 + 39 + 93 = $290 Mil.
Non Operating Income was -3 + -2 + 232 + 2 = $229 Mil.
Cash Flow from Operations was 138 + 98 + 63 + 101 = $400 Mil.
Total Receivables was $958 Mil.
Revenue was 1784 + 2028 + 1968 + 1909 = $7,689 Mil.
Gross Profit was 216 + 235 + 222 + 221 = $894 Mil.
Total Current Assets was $1,384 Mil.
Total Assets was $5,672 Mil.
Property, Plant and Equipment(Net PPE) was $230 Mil.
Depreciation, Depletion and Amortization(DDA) was $148 Mil.
Selling, General, & Admin. Expense(SGA) was $361 Mil.
Total Current Liabilities was $1,212 Mil.
Long-Term Debt & Capital Lease Obligation was $2,353 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)
=(946 / 7297) / (958 / 7689)
=0.129642 / 0.124594
=1.0405

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)
=(894 / 7689) / (844 / 7297)
=0.11627 / 0.115664
=1.0052

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 - (1103 + 263) / 5250) / (1 - (1384 + 230) / 5672)
=0.73981 / 0.715444
=1.0341

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
=7297 / 7689
=0.949

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))
=(148 / (148 + 230)) / (139 / (139 + 263))
=0.391534 / 0.345771
=1.1324

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)
=(363 / 7297) / (361 / 7689)
=0.049746 / 0.04695
=1.0596

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)
=((2128 + 1292) / 5250) / ((2353 + 1212) / 5672)
=0.651429 / 0.628526
=1.0364

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
=(290 - 229 - 400) / 5250
=-0.064571

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 -2.78 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 Business Description

Traded in Other Exchanges
Address
12010 Sunset Hills Road, Reston, VA, USA, 20190
Science Applications International Corp provides technical, engineering, and enterprise IT services mainly 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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