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Marvell Technology Group Ltd (NAS:MRVL)
Beneish M-Score
-2.77 (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 -2.77 suggests that the company is not a manipulator.

MRVL' s 10-Year Beneish M-Score Range
Min: -3.17   Max: -1.83
Current: -2.77

-3.17
-1.83

During the past 13 years, the highest Beneish M-Score of Marvell Technology Group Ltd was -1.83. The lowest was -3.17. And the median was -2.50.


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 * 0.8525+0.528 * 1.0172+0.404 * 0.9034+0.892 * 1.0889+0.115 * 1.0897
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9709+4.679 * -0.0546-0.327 * 0.8904
=-2.77

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

This Year (Jan15) TTM:Last Year (Jan14) TTM:
Accounts Receivable was $421 Mil.
Revenue was 857.452 + 930.136 + 961.545 + 957.83 = $3,707 Mil.
Gross Profit was 440.321 + 475.162 + 483.804 + 463.97 = $1,863 Mil.
Total Current Assets was $3,344 Mil.
Total Assets was $5,884 Mil.
Property, Plant and Equipment(Net PPE) was $341 Mil.
Depreciation, Depletion and Amortization(DDA) was $125 Mil.
Selling, General & Admin. Expense(SGA) was $274 Mil.
Total Current Liabilities was $637 Mil.
Long-Term Debt was $16 Mil.
Net Income was 81.693 + 115.304 + 138.87 + 99.479 = $435 Mil.
Non Operating Income was 3.32 + 0 + 24.526 + 0 = $28 Mil.
Cash Flow from Operations was 142.201 + 194.644 + 156.954 + 235.137 = $729 Mil.
Accounts Receivable was $453 Mil.
Revenue was 931.749 + 931.226 + 807.056 + 734.369 = $3,404 Mil.
Gross Profit was 454.497 + 466.245 + 420.997 + 398.931 = $1,741 Mil.
Total Current Assets was $2,839 Mil.
Total Assets was $5,451 Mil.
Property, Plant and Equipment(Net PPE) was $356 Mil.
Depreciation, Depletion and Amortization(DDA) was $147 Mil.
Selling, General & Admin. Expense(SGA) was $259 Mil.
Total Current Liabilities was $651 Mil.
Long-Term Debt was $29 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)
=(420.955 / 3706.963) / (453.496 / 3404.4)
=0.11355792 / 0.13320879
=0.8525

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)
=(475.162 / 3404.4) / (440.321 / 3706.963)
=0.51130008 / 0.50263706
=1.0172

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 - (3344.04 + 340.639) / 5884.387) / (1 - (2839.22 + 356.165) / 5451.01)
=0.3738211 / 0.41379946
=0.9034

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
=3706.963 / 3404.4
=1.0889

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))
=(146.758 / (146.758 + 356.165)) / (124.585 / (124.585 + 340.639))
=0.29181008 / 0.26779573
=1.0897

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)
=(273.982 / 3706.963) / (259.169 / 3404.4)
=0.0739101 / 0.07612766
=0.9709

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)
=((16.468 + 637.376) / 5884.387) / ((28.959 + 651.306) / 5451.01)
=0.11111506 / 0.12479614
=0.8904

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
=(435.346 - 27.846 - 728.936) / 5884.387
=-0.0546

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 -2.77 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

Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15
DSRI 0.94070.86830.96741.17671.20251.27811.19560.94750.81910.8525
GMI 1.0851.07441.05411.03671.02441.0341.06321.06571.04841.0172
AQI 1.09361.09551.11131.0771.01480.94520.88660.86770.89310.9034
SGI 0.88320.93390.91720.93711.03571.07441.16781.22111.16421.0889
DEPI 1.01450.94980.95860.9170.93020.95320.92660.99671.04331.0897
SGAI 1.11241.11311.12331.08421.01040.89230.82760.79310.84020.9709
LVGI 0.98121.13021.08061.15381.2791.08021.16081.04320.85210.8904
TATA -0.0473-0.0803-0.0681-0.0565-0.0562-0.0292-0.0465-0.0453-0.0463-0.0546
M-score -2.79-3.03-2.88-2.66-2.61-2.31-2.41-2.54-2.65-2.77
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