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Parsons (Parsons) Beneish M-Score : -2.45 (As of Apr. 30, 2024)


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What is Parsons 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 -2.45 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

PSN' s Beneish M-Score Range Over the Past 10 Years
Min: -2.78   Med: -2.47   Max: -2.41
Current: -2.45

During the past 8 years, the highest Beneish M-Score of Parsons was -2.41. The lowest was -2.78. And the median was -2.47.


Parsons Beneish M-Score Historical Data

The historical data trend for Parsons'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.

Parsons Beneish M-Score Chart

Parsons Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Get a 7-Day Free Trial -2.41 -2.78 -2.76 -2.47 -2.45

Parsons Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 -2.47 -2.46 -2.34 -2.40 -2.45

Competitive Comparison of Parsons's Beneish M-Score

For the Information Technology Services subindustry, Parsons'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.


Parsons's Beneish M-Score Distribution in the Software Industry

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

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



Parsons 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 Parsons 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 * 0.9543+0.528 * 1.0184+0.404 * 0.9449+0.892 * 1.2974+0.115 * 1.022
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8625+4.679 * -0.042422-0.327 * 1.0135
=-2.45

* 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 (Dec23) TTM:Last Year (Dec22) TTM:
Total Receivables was $1,673 Mil.
Revenue was 1494.226 + 1418.571 + 1356.486 + 1173.466 = $5,443 Mil.
Gross Profit was 367.204 + 294.266 + 288.266 + 256.278 = $1,206 Mil.
Total Current Assets was $2,138 Mil.
Total Assets was $4,804 Mil.
Property, Plant and Equipment(Net PPE) was $258 Mil.
Depreciation, Depletion and Amortization(DDA) was $120 Mil.
Selling, General, & Admin. Expense(SGA) was $870 Mil.
Total Current Liabilities was $1,411 Mil.
Long-Term Debt & Capital Lease Obligation was $869 Mil.
Net Income was 44.908 + 47.447 + 43.241 + 25.553 = $161 Mil.
Non Operating Income was -48.913 + 10.071 + 0.618 + -4.526 = $-43 Mil.
Cash Flow from Operations was 190.133 + 203.58 + 22.976 + -8.99 = $408 Mil.
Total Receivables was $1,351 Mil.
Revenue was 1103.112 + 1134.37 + 1008.721 + 949.069 = $4,195 Mil.
Gross Profit was 242.657 + 261.947 + 226.949 + 215.169 = $947 Mil.
Total Current Assets was $1,720 Mil.
Total Assets was $4,198 Mil.
Property, Plant and Equipment(Net PPE) was $251 Mil.
Depreciation, Depletion and Amortization(DDA) was $121 Mil.
Selling, General, & Admin. Expense(SGA) was $777 Mil.
Total Current Liabilities was $1,108 Mil.
Long-Term Debt & Capital Lease Obligation was $857 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)
=(1673.153 / 5442.749) / (1351.378 / 4195.272)
=0.30741 / 0.322119
=0.9543

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)
=(946.722 / 4195.272) / (1206.014 / 5442.749)
=0.225664 / 0.221582
=1.0184

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 - (2137.526 + 258.168) / 4804.061) / (1 - (1719.783 + 251.14) / 4198.142)
=0.501319 / 0.530525
=0.9449

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
=5442.749 / 4195.272
=1.2974

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))
=(120.501 / (120.501 + 251.14)) / (119.973 / (119.973 + 258.168))
=0.32424 / 0.317271
=1.022

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)
=(869.905 / 5442.749) / (777.403 / 4195.272)
=0.159828 / 0.185305
=0.8625

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)
=((868.597 + 1410.884) / 4804.061) / ((857.268 + 1108.119) / 4198.142)
=0.47449 / 0.468156
=1.0135

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
=(161.149 - -42.75 - 407.699) / 4804.061
=-0.042422

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.

Parsons has a M-score of -2.45 suggests that the company is unlikely to be a manipulator.


Parsons Beneish M-Score Related Terms

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Parsons (Parsons) Business Description

Traded in Other Exchanges
Address
5875 Trinity Parkway, Suite 300, Centreville, VA, USA, 21120
Parsons Corp is a provider of technology-driven solutions in the defense, intelligence, and critical infrastructure markets. The business activities of the group are carried out through Federal Solutions and Critical Infrastructure segments. The Federal Solutions segment is a high-end service and technology provider to the U.S. government, delivering timely, cost-effective solutions for mission-critical projects, whereas the Critical Infrastructure segment provides integrated design and engineering services for complex physical and digital infrastructure around the globe.
Executives
George L. Ball officer: Chief Financial Officer 10943 N. SAM HOUSTON PARKWAY W., HOUSTON TX 77064
Matthew Ofilos officer: Chief Financial Officer C/O PARSONS CORPORATION, 5875 TRINITY PARKWAY, #300, CENTREVILLE VA 20210
Ellen M. Lord director 1100 N. WOOD DALE ROAD, WOOD DALE IL 60191
Susan M. Balaguer officer: Chief Human Resources Officer C/O PARSONS, 5875 TRINITY PARKWAY #300, CENTREVILLE VA 20120
Carey A. Smith officer: Chief Operating Officer 6210 ARDREY KELL ROAD, CHARLOTTE NC 28277
Michael Richard Kolloway officer: See Remarks 5875 TRINITY PKWY #300, CENTREVILLE VA 20120
Harry T. Mcmahon director 9200 OAKDALE AVENUE, SUITE 900, LOS ANGELES CA 91311
David C Wajsgras director 870 WINTER STREET, WALTHAM MA 02451
Darren W Mcdew director 100 ABBOTT PARK ROAD, ABBOTT PARK IL 60064
Letitia A Long director C/O CORPORATE OFFICE PROPERTIES TRUST, 6711 COLUMBIA GATEWAY DRIVE, #300, COLUMBIA MD 21046
Debra Fiori officer: Chief People Officer C/O PARSONS CORPORATION, 5875 TRINITY PARKWAY, #300, CENTREVILLE VA 20120
Charles L. Harrington director, officer: See Remarks 5875 TRINITY PKWY #300, CENTREVILLE VA 20120
James F Mcgovern director
M Christian Mitchell director 355 S. GRAND AVE, SUITE 1750, LOS ANGELES CA 90071
Mark Holdsworth director 140 S. LAKE AVE., STE. 304, PASADENA CA 91101