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Leidos Holdings Beneish M-Score

: -2.30 (As of Today)
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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 -2.3 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

NYSE:LDOS' s Beneish M-Score Range Over the Past 10 Years
Min: -3.5   Med: -2.55   Max: -1.53
Current: -2.3

-3.5
-1.53

During the past 13 years, the highest Beneish M-Score of Leidos Holdings was -1.53. The lowest was -3.50. And the median was -2.55.


Leidos Holdings Beneish M-Score Historical Data

The historical data trend for Leidos Holdings'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.

Leidos Holdings Annual Data
Trend Jan11 Jan12 Jan13 Jan14 Jan15 Dec16 Dec17 Dec18 Dec19 Dec20
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.22 -2.56 -2.23 -2.59 -2.53

Leidos Holdings Quarterly Data
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
Beneish M-Score 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 Premium Member Only Premium Member Only Premium Member Only -2.75 -2.53 -2.49 -2.27 -2.30

Competitive Comparison

For the Information Technology Services subindustry, Leidos Holdings'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.

   

Leidos Holdings Beneish M-Score Distribution

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

* The bar in red indicates where Leidos Holdings's Beneish M-Score falls into.



Leidos Holdings 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 Leidos Holdings 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 * 1.0865+0.528 * 0.9424+0.404 * 0.9815+0.892 * 1.1249+0.115 * 0.9886
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9355+4.679 * 0.002-0.327 * 0.983
=-2.30

* 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 (Sep21) TTM:Last Year (Sep20) TTM:
Accounts Receivable was $2,288 Mil.
Revenue was 3483 + 3448 + 3315 + 3252 = $13,498 Mil.
Gross Profit was 541 + 498 + 467 + 491 = $1,997 Mil.
Total Current Assets was $3,569 Mil.
Total Assets was $13,281 Mil.
Property, Plant and Equipment(Net PPE) was $1,300 Mil.
Depreciation, Depletion and Amortization(DDA) was $312 Mil.
Selling, General, & Admin. Expense(SGA) was $803 Mil.
Total Current Liabilities was $3,347 Mil.
Long-Term Debt & Capital Lease Obligation was $5,231 Mil.
Net Income was 205 + 169 + 205 + 197 = $776 Mil.
Non Operating Income was -1 + -5 + -1 + -13 = $-20 Mil.
Cash Flow from Operations was 565 + 17 + 239 + -52 = $769 Mil.
Accounts Receivable was $1,872 Mil.
Revenue was 3242 + 2914 + 2889 + 2954 = $11,999 Mil.
Gross Profit was 468 + 383 + 395 + 427 = $1,673 Mil.
Total Current Assets was $3,199 Mil.
Total Assets was $12,285 Mil.
Property, Plant and Equipment(Net PPE) was $1,158 Mil.
Depreciation, Depletion and Amortization(DDA) was $274 Mil.
Selling, General, & Admin. Expense(SGA) was $763 Mil.
Total Current Liabilities was $3,398 Mil.
Long-Term Debt & Capital Lease Obligation was $4,674 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Accounts Receivable 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)
=(2288 / 13498) / (1872 / 11999)
=0.16950659 / 0.156013
=1.0865

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)
=(1673 / 11999) / (1997 / 13498)
=0.13942829 / 0.14794784
=0.9424

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 - (3569 + 1300) / 13281) / (1 - (3199 + 1158) / 12285)
=0.63338604 / 0.64533985
=0.9815

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
=13498 / 11999
=1.1249

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))
=(274 / (274 + 1158)) / (312 / (312 + 1300))
=0.19134078 / 0.19354839
=0.9886

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)
=(803 / 13498) / (763 / 11999)
=0.05949029 / 0.06358863
=0.9355

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)
=((5231 + 3347) / 13281) / ((4674 + 3398) / 12285)
=0.6458851 / 0.65706146
=0.983

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
=(776 - -20 - 769) / 13281
=0.002

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.

Leidos Holdings has a M-score of -2.30 suggests that the company is unlikely to be a manipulator.


Leidos Holdings Beneish M-Score Related Terms

Thank you for viewing the detailed overview of Leidos Holdings's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


Leidos Holdings Business Description

Leidos Holdings logo
Industry
Technology » Software NAICS : 541513 SIC : 7373
Traded in Other Exchanges
Address
11951 Freedom Drive, Reston, VA, USA, 20190
Leidos Holdings Inc is engaged in scientific, engineering, system integration, technical services, and solutions to various government entities and highly regulated industries, including the U.S. Department of Defense, Intelligence Community and the British Ministry of Defense. Areas of focus include intelligence and surveillance, cybersecurity, complex logistics, energy, and health.
Executives
John Miriam E director 7011 EAST AVENUE LIVERMORE CA 94550
Moos James Robert officer: Group President 11951 FREEDOM DRIVE RESTON VA 20190
Kraemer Harry M Jansen Jr director DENTSPLY SIRONA INC. 13320 BALLANTYNE CORPORATE PLACE CHARLOTTE NC 28277
Krone Roger A director, officer: CEO PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: KRONE ROGER A a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Cage Christopher R officer: SVP and Corporate Controller 11951 FREEDOM DRIVE RESTON VA 20190
Kendall Frank Iii director 11951 FREEDOM DRIVE RESTON VA 20190
Reagan James officer: EVP, Chief Financial Officer C/O DELTEK 13880 DULLES CORNER LANE HERNDON VA 20171
Howe Jerald S Jr officer: Executive VP & General Counsel PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: HOWE JERALD S JR a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Williams Noel B director ONE PARK PLAZA NASHVILLE TN 37203
Schmanske Mary Vicki officer: Group President 11951 FREEDOM DRIVE RESTON VA 20190
Porter Elizabeth A officer: Group President 1750 PRESIDENTS STREET RESTON VA 20190
Stevens Roy E officer: Chief of Business Development 11951 FREEDOM DRIVE RESTON VA 20190
May Gary Stephen director 11951 FREEDOM DRIVE RESTON VA 20190
Fubini David G director D.G. FUBINI CONSULTANTS, LLC 80 SEARS ROAD BROOKLINE MA 02445
Stalnecker Susan M director TWO N NINTHST ALLENTOWN PA 18101

Leidos Holdings Headlines

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