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Marvell Technology Group Ltd (NAS:MRVL)
Beneish M-Score
-2.39 (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 -2.39 suggests that the company is not a manipulator.

MRVL' s 10-Year Beneish M-Score Range
Min: -4.13   Max: -1.83
Current: -2.39

-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 -2.59.


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 * 1.1956+0.528 * 1.0577+0.404 * 0.8866+0.892 * 1.1678+0.115 * 0.9266
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8276+4.679 * -0.0402-0.327 * 1.1608
=-2.39

* 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:
Accounts Receivable was $517 Mil.
Revenue was 957.83 + 931.749 + 931.226 + 807.056 = $3,628 Mil.
Gross Profit was 463.97 + 463.997 + 466.245 + 420.997 = $1,815 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.
Net Income was 99.479 + 106.629 + 103.156 + 61.826 = $371 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 235.137 + 100.489 + 177.199 + 86.496 = $599 Mil.
Accounts Receivable was $370 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 Current Assets was $2,453 Mil.
Total Assets was $5,121 Mil.
Property, Plant and Equipment(Net PPE) was $385 Mil.
Depreciation, Depletion and Amortization(DDA) was $144 Mil.
Selling, General & Admin. Expense(SGA) was $271 Mil.
Total Current Liabilities was $613 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)
=(517.074 / 3627.861) / (370.35 / 3106.648)
=0.14252861 / 0.11921209
=1.1956

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)
=(463.997 / 3106.648) / (463.97 / 3627.861)
=0.529199 / 0.50035241
=1.0577

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 - (3086.983 + 349.321) / 5682.972) / (1 - (2452.914 + 384.612) / 5121.167)
=0.39533329 / 0.44592199
=0.8866

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
=3627.861 / 3106.648
=1.1678

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))
=(143.826 / (143.826 + 384.612)) / (145.286 / (145.286 + 349.321))
=0.27217195 / 0.29374028
=0.9266

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)
=(261.788 / 3627.861) / (270.872 / 3106.648)
=0.07216043 / 0.08719108
=0.8276

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 + 789.76) / 5682.972) / ((0 + 613.095) / 5121.167)
=0.13896954 / 0.11971783
=1.1608

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
=(371.09 - 0 - 599.321) / 5682.972
=-0.0402

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 -2.39 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

Jan05Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14
DSRI 0.98540.89450.99950.80590.63661.68821.00090.94370.86831.2781
GMI 1.01680.98111.05261.05330.93430.91750.95081.04241.07441.0283
AQI 0.85050.86441.21260.95570.96520.8190.78281.11721.08880.951
SGI 1.49381.3641.33961.29371.01930.95161.28640.93940.93391.0744
DEPI 1.00561.20331.22850.77220.95261.07621.15761.23080.97560.928
SGAI 0.89520.83711.74420.93180.74511.22880.65111.06341.11310.8923
LVGI 0.96981.25252.43960.86670.56430.90410.92171.01121.13021.0191
TATA -0.0278-0.0257-0.0802-0.0635-0.1208-0.0886-0.0457-0.0271-0.0803-0.0226
M-score -2.21-2.47-3.01-2.65-3.23-2.42-2.45-2.63-3.03-2.26

Marvell Technology Group Ltd Quarterly Data

Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14
DSRI 1.03071.03710.94070.86830.96741.17671.20251.27811.19560.9475
GMI 1.05531.07291.0851.07441.05411.03671.02441.02831.05771.0603
AQI 1.00821.04711.09361.08881.11131.0771.01480.9510.88660.8677
SGI 0.95170.92860.88320.93390.91720.93711.03571.07441.16781.2211
DEPI 1.21981.13821.01450.97560.95860.9170.93020.9280.92660.9967
SGAI 1.05541.08581.11241.11311.12331.08421.01040.89230.82760.7931
LVGI 1.02811.03950.98121.13021.08061.15381.2791.01911.16081.0432
TATA -0.0402-0.0457-0.0473-0.0803-0.0681-0.0533-0.0531-0.0226-0.0402-0.0378
M-score -2.64-2.68-2.79-3.03-2.88-2.65-2.59-2.26-2.39-2.51
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