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Marvell Technology Group Ltd (NAS:MRVL)
Beneish M-Score
-2.86 (As of Today)

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

An M-Score of less than -2.22 suggests that the company is not an accounting manipulator.
An M-Score of greater than -2.22 signals that the company is likely an accounting manipulator.

Marvell Technology Group Ltd has a M-score of -2.86 suggests that the company is not a manipulator.

MRVL' s 10-Year Beneish M-Score Range
Min: -4.13   Max: -1.83
Current: -2.86

-4.13
-1.83

During the past 13 years, the highest Beneish M-Score of Marvell Technology Group Ltd was -1.83. The lowest was -4.13. And the median was -2.63.


Definition

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Z-Score) or business trend (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 Marvell Technology Group Ltd 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 * 0.7955+0.528 * 0.9754+0.404 * 0.9485+0.892 * 0.9574+0.115 * 1.0906
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1261+4.679 * -0.0395-0.327 * 0.7593
=-2.86

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

This Year (Apr15) TTM:Last Year (Apr14) TTM:
Accounts Receivable was $394 Mil.
Revenue was 724.288 + 857.452 + 930.136 + 961.545 = $3,473 Mil.
Gross Profit was 373.135 + 440.321 + 475.162 + 483.804 = $1,772 Mil.
Total Current Assets was $3,326 Mil.
Total Assets was $5,842 Mil.
Property, Plant and Equipment(Net PPE) was $326 Mil.
Depreciation, Depletion and Amortization(DDA) was $120 Mil.
Selling, General & Admin. Expense(SGA) was $282 Mil.
Total Current Liabilities was $616 Mil.
Long-Term Debt was $0 Mil.
Net Income was 14.09 + 81.693 + 115.304 + 138.87 = $350 Mil.
Non Operating Income was 0 + 3.32 + 0 + 24.526 = $28 Mil.
Cash Flow from Operations was 58.868 + 142.201 + 194.644 + 156.954 = $553 Mil.
Accounts Receivable was $517 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 Current Assets was $3,087 Mil.
Total Assets was $5,683 Mil.
Property, Plant and Equipment(Net PPE) was $349 Mil.
Depreciation, Depletion and Amortization(DDA) was $145 Mil.
Selling, General & Admin. Expense(SGA) was $262 Mil.
Total Current Liabilities was $790 Mil.
Long-Term Debt was $0 Mil.



1. DSRI = Days Sales in Receivables Index

Measured as the ratio of days’ sales in 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)
=(393.814 / 3473.421) / (517.074 / 3627.861)
=0.11337929 / 0.14252861
=0.7955

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)
=(440.321 / 3627.861) / (373.135 / 3473.421)
=0.49773379 / 0.51028136
=0.9754

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 plant, property and equipment to total assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (3325.739 + 325.754) / 5842.049) / (1 - (3086.983 + 349.321) / 5682.972)
=0.37496365 / 0.39533329
=0.9485

4. SGI = Sales Growth Index

Ratio of sales 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
=3473.421 / 3627.861
=0.9574

5. DEPI = Depreciation Index

Measured as the ratio of the rate of depreciation 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))
=(145.286 / (145.286 + 349.321)) / (120.078 / (120.078 + 325.754))
=0.29374028 / 0.26933464
=1.0906

6. SGAI = Sales, General and Administrative expenses Index

The ratio of SGA expenses 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)
=(282.252 / 3473.421) / (261.788 / 3627.861)
=0.08126052 / 0.07216043
=1.1261

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$sgai= in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((0 + 616.488) / 5842.049) / ((0 + 789.76) / 5682.972)
=0.10552599 / 0.13896954
=0.7593

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
=(349.957 - 27.846 - 552.667) / 5842.049
=-0.0395

An M-Score of less than -2.22 suggests that the company will not be a manipulator. An M-Score of greater than -2.22 signals that the company is likely to be a manipulator.

Marvell Technology Group Ltd has a M-score of -2.86 suggests that the company will not be a manipulator.


Related Terms

Altman Z-Score, Piotroski F-Score, Accounts Receivable, Revenue, Gross Profit, Total Current Assets, Total Assets, Property, Plant and Equipment, Depreciation, Depletion and Amortization, Selling, General & Admin. Expense, Total Current Liabilities, Long-Term Debt, Net Income, Non Operating Income, Cash Flow from Operations


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

Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15
DSRI 0.89450.99950.78180.65631.68821.00090.94370.86831.27810.8525
GMI 0.98111.05261.05330.93430.91750.95081.04241.07441.0341.0172
AQI 0.86441.21260.95570.96520.8190.78281.11721.09550.94520.9034
SGI 1.3641.33961.29371.01930.95161.28640.93940.93391.07441.0889
DEPI 1.20331.22850.77220.95261.07621.15761.23080.94980.95321.0897
SGAI 0.83711.74420.93180.75751.20880.65111.06341.11310.89230.9709
LVGI 1.25252.43960.86670.43431.14430.94621.01121.13021.08020.8904
TATA -0.0257-0.0802-0.0635-0.1208-0.0886-0.0457-0.0271-0.0803-0.0262-0.0505
M-score -2.47-3.01-2.68-3.17-2.50-2.46-2.63-3.03-2.30-2.75

Marvell Technology Group Ltd Quarterly Data

Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15Apr15
DSRI 0.86830.96741.17671.20251.27811.19560.94750.81910.85250.7955
GMI 1.07441.05411.03671.02441.0341.06321.06571.04841.01720.9754
AQI 1.09551.11131.0771.01480.94520.88660.86770.89310.90340.9485
SGI 0.93390.91720.93711.03571.07441.16781.22111.16421.08890.9574
DEPI 0.94980.95860.9170.93020.95320.92660.99671.04331.08971.0906
SGAI 1.11311.12331.08421.01040.89230.82760.79310.84020.97091.1261
LVGI 1.13021.08061.15381.2791.08021.16081.04320.85210.89040.7593
TATA -0.0803-0.0681-0.0565-0.0562-0.0292-0.0465-0.0453-0.0463-0.0546-0.0395
M-score -3.03-2.88-2.66-2.61-2.31-2.41-2.54-2.65-2.77-2.86
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