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Marvell Technology Group Ltd (NAS:MRVL)
Piotroski F-Score
5 (As of Today)

The zones of discrimination were as such:

Good or high score = 8 or 9
Bad or low score = 0 or 1

Marvell Technology Group Ltd has an F-score of 5 indicating the company's financial situation is typical for a stable company.

MRVL' s 10-Year Piotroski F-Score Range
Min: 3   Max: 8
Current: 5

3
8

During the past 13 years, the highest Piotroski F-Score of Marvell Technology Group Ltd was 8. The lowest was 3. And the median was 5.


Definition

How is the Piotroski F-Score calculated?

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

This Year (Apr14) TTM:Last Year (Apr13) TTM:
Net Income was 99.479 + 97.129 + 103.156 + 61.826 = $362 Mil.
Cash Flow from Operations was 235.137 + 100.489 + 177.199 + 86.496 = $599 Mil.
Revenue was 957.83 + 931.749 + 931.226 + 807.056 = $3,628 Mil.
Gross Profit was 463.97 + 454.497 + 466.245 + 420.997 = $1,806 Mil.
Total Assets at the begining of this year (Apr13) was $5,121 Mil.
Total Assets was $5,683 Mil.
Long-Term Debt was $0 Mil.
Total Current Assets was $3,087 Mil.
Total Current Liabilities was $790 Mil.
Net Income was 53.209 + 50.152 + 68.816 + 93.074 = $265 Mil.

Revenue was 734.369 + 775.294 + 780.881 + 816.104 = $3,107 Mil.
Gross Profit was 398.931 + 404.461 + 406.378 + 434.265 = $1,644 Mil.
Total Assets at the begining of last year (Apr12) was $5,719 Mil.
Total Assets was $5,121 Mil.
Long-Term Debt was $0 Mil.
Total Current Assets was $2,453 Mil.
Total Current Liabilities was $613 Mil.

Profitability

Q1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by total assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Marvell Technology Group Ltd's current net income was 362. ==> Positive ==> Score 1.

Q2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by total assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Marvell Technology Group Ltd's current cash flow from operations was 599. ==> Positive ==> Score 1.

Q3. Change in Return on Assets

Compare this year’s return on assets (1) to last year’s return on assets.

Score 1 if it’s higher, 0 if it’s lower.

ROA (This Year)=Net Income/Total Assets at the beginning of this year (Apr13)
=361.59/5121.167
=0.07060695

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (Apr12)
=265.251/5718.525
=0.04638451

Marvell Technology Group Ltd's return on assets of this year was 0.07060695. Marvell Technology Group Ltd's return on assets of last year was 0.04638451. ==> This year is higher. ==> Score 1.

Q4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA =< ROA.

Marvell Technology Group Ltd's current net income was 362. Marvell Technology Group Ltd's current cash flow from operations was 599. ==> 599 > 362 ==> CFROA > ROA ==> Score 1.

Funding

Q5. Change in Gearing or Leverage

Compare this year’s gearing (long-term debt divided by average total assets) to last year’s gearing.

Score 1 if gearing is lower, 0 if it’s higher.

Gearing (This Year)=Long-Term Debt/Total Assets
=0/5682.972
=0

Gearing (Last Year)=Long-Term Debt/Total Assets
=0/5121.167
=0

Marvell Technology Group Ltd's gearing of this year was 0. Marvell Technology Group Ltd's gearing of last year was 0. ==> Last year is lower ==> Score 0.

Q6. Change in Working Capital (Liquidity)

Compare this year’s current ratio (current assets divided by current liabilities) to last year’s current ratio.

Score 1 if this year’s current ratio is higher, 0 if it’s lower

Current Ratio (This Year)=Total Current Assets/Total Current Liabilities
=3086.983/789.76
=3.90876089

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=2452.914/613.095
=4.00087099

Marvell Technology Group Ltd's current ratio of this year was 3.90876089. Marvell Technology Group Ltd's current ratio of last year was 4.00087099. ==> Last year's current ratio is higher ==> Score 0.

Q7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 1 if there is fewer number of shares in issue this year. Score 0 otherwise.

Marvell Technology Group Ltd's number of shares in issue this year was 520.8. Marvell Technology Group Ltd's number of shares in issue last year was 505.4. ==> There is more number of shares in issue this year. ==> Score 0.

Efficiency

Q8. Change in Gross Margin

Compare this year’s gross margin (gross profit divided by sales) to last year’s.

Score 1 if this year’s gross margin is higher, 0 if it’s lower.

Gross Margin (This Year)=Gross Profit/Revenue
=1805.709/3627.861
=0.49773379

Gross Margin (Last Year)=Gross Profit/Revenue
=1644.035/3106.648
=0.529199

Marvell Technology Group Ltd's gross margin of this year was 0.49773379. Marvell Technology Group Ltd's gross margin of last year was 0.529199. ==> Last year's gross margin is higher ==> Score 0.

Q9. Change in asset turnover

Compare this year’s asset turnover (total sales divided by total assets at the beginning of the year) to last year’s asset turnover ratio.

Score 1 if this year’s asset turnover ratio is higher, 0 if it’s lower

Asset Turnover (This Year)=Revenue/Total Assets at the beginning of this year (Apr13)
=3627.861/5121.167
=0.70840514

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (Apr12)
=3106.648/5718.525
=0.54326037

Marvell Technology Group Ltd's asset turnover of this year was 0.70840514. Marvell Technology Group Ltd's asset turnover of last year was 0.54326037. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score=Q1+Q2+Q3+Q4+Q5+Q6+Q7+Q8+Q9
=1+1+1+1+0+0+0+0+1
=5

Good or high score = 8 or 9

Bad or low score = 0 or 1

Marvell Technology Group Ltd has an F-score of 5 indicating the company's financial situation is typical for a stable company.


Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Related Terms

Net Income, Cash Flow from Operations, Revenue, Gross Profit, Total Assets, Long-Term Debt, Total Current Assets, Total Current Liabilities


Historical Data

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

Marvell Technology Group Ltd Annual Data

Jan05Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14
Q1 1100111111
Q2 1111111111
Q3 1100111001
Q4 1111111111
Q5 1001111000
Q6 1001111001
Q7 0010000111
Q8 0100111000
Q9 1111101011
F-score 7645878457

Marvell Technology Group Ltd Quarterly Data

Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14
Q1 1111111111
Q2 1111111111
Q3 0000000011
Q4 1111111111
Q5 0000000000
Q6 0000000010
Q7 1111111110
Q8 0000000000
Q9 0000100111
F-score 4444544575
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