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Marvell Technology Group Ltd (NAS:MRVL)
Beneish M-Score
-2.99 (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 -2.99 suggests that the company is not a manipulator.

MRVL' s Beneish M-Score Range Over the Past 10 Years
Min: -3.85   Max: -1.87
Current: -2.99

-3.85
-1.87

During the past 13 years, the highest Beneish M-Score of Marvell Technology Group Ltd was -1.87. The lowest was -3.85. And the median was -2.64.


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 * 0.9737+0.528 * 1.1384+0.404 * 1.2734+0.892 * 0.7319+0.115 * 0.977
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.2666+4.679 * -0.0825-0.327 * 0.9863
=-2.99

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

This Year (Apr16) TTM:Last Year (Apr15) TTM:
Accounts Receivable was $281 Mil.
Revenue was 540.822 + 616.158 + 674.89 + 710.492 = $2,542 Mil.
Gross Profit was 281.612 + 313.548 + 295.636 + 248.773 = $1,140 Mil.
Total Current Assets was $2,150 Mil.
Total Assets was $4,657 Mil.
Property, Plant and Equipment(Net PPE) was $284 Mil.
Depreciation, Depletion and Amortization(DDA) was $108 Mil.
Selling, General & Admin. Expense(SGA) was $262 Mil.
Total Current Liabilities was $485 Mil.
Long-Term Debt was $0 Mil.
Net Income was -22.679 + 4.2 + -57.75 + -771.94 = $-848 Mil.
Non Operating Income was -1.836 + -2.779 + 0.867 + 3.011 = $-1 Mil.
Cash Flow from Operations was -609.601 + 53.306 + 66.594 + 26.584 = $-463 Mil.
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.



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)
=(280.658 / 2542.362) / (393.814 / 3473.421)
=0.11039262 / 0.11337929
=0.9737

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)
=(1772.422 / 3473.421) / (1139.569 / 2542.362)
=0.51028136 / 0.44823239
=1.1384

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 - (2149.776 + 283.584) / 4657.121) / (1 - (3325.739 + 325.754) / 5842.049)
=0.47749693 / 0.37496365
=1.2734

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
=2542.362 / 3473.421
=0.7319

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))
=(120.078 / (120.078 + 325.754)) / (107.925 / (107.925 + 283.584))
=0.26933464 / 0.27566416
=0.977

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)
=(261.673 / 2542.362) / (282.252 / 3473.421)
=0.10292515 / 0.08126052
=1.2666

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 + 484.699) / 4657.121) / ((0 + 616.488) / 5842.049)
=0.10407696 / 0.10552599
=0.9863

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
=(-848.169 - -0.737 - -463.117) / 4657.121
=-0.0825

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 -2.99 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

Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15Jan16
DSRI 0.99950.78180.65631.68821.00090.94370.86831.27810.85251.0445
GMI 1.05261.05330.93430.91750.95081.04241.07441.0341.01721.1129
AQI 1.21260.95570.96520.8190.78281.11721.08880.9510.90341.0932
SGI 1.33961.29371.01930.95161.28640.93940.93391.07441.08890.7353
DEPI 1.22850.77220.95261.07621.15761.23080.97560.9281.08970.9785
SGAI 1.74420.93180.75751.20880.65111.06341.11310.89230.97091.3645
LVGI 2.43960.86670.43431.17480.92171.01121.13021.08020.89042.0271
TATA -0.0772-0.0641-0.1208-0.0886-0.0457-0.0271-0.0803-0.0243-0.0521-0.1873
M-score -3.00-2.68-3.17-2.51-2.45-2.63-3.03-2.29-2.76-3.86

Marvell Technology Group Ltd Quarterly Data

Apr14Jul14Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16
DSRI 1.19560.94750.81910.85250.79550.98361.09081.04450.97371.0942
GMI 1.06321.06571.04841.01720.97541.03541.08491.11291.13840.9538
AQI 0.88660.86770.89310.90340.94851.00891.03441.09321.27341.2214
SGI 1.16781.22111.16421.08890.95740.85190.78470.73530.73190.7629
DEPI 0.92660.99671.04331.08971.09061.07011.01620.97850.9770.9109
SGAI 0.82760.79310.84020.97091.12611.27141.34091.36751.26661.2171
LVGI 1.16081.04320.85210.89040.75931.78981.982.02710.98630.4426
TATA -0.0418-0.0436-0.0446-0.0563-0.0411-0.1764-0.1898-0.187-0.08250.0964
M-score -2.39-2.53-2.65-2.78-2.86-3.73-3.80-3.85-2.99-1.95
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