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Marvell Technology Group Ltd (NAS:MRVL)
Beneish M-Score
-3.86 (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 -3.86 suggests that the company is not a manipulator.

MRVL' s Beneish M-Score Range Over the Past 10 Years
Min: -3.86   Max: -1.87
Current: -3.86

-3.86
-1.87

During the past 13 years, the highest Beneish M-Score of Marvell Technology Group Ltd was -1.87. The lowest was -3.86. And the median was -2.57.


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 * 1.0445+0.528 * 1.1129+0.404 * 1.0932+0.892 * 0.7353+0.115 * 0.9785
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.3952+4.679 * -0.1875-0.327 * 2.0271
=-3.86

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

This Year (Jan16) TTM:Last Year (Jan15) TTM:
Accounts Receivable was $323 Mil.
Revenue was 616.158 + 674.89 + 710.492 + 724.288 = $2,726 Mil.
Gross Profit was 313.548 + 295.636 + 248.773 + 373.135 = $1,231 Mil.
Total Current Assets was $2,919 Mil.
Total Assets was $5,442 Mil.
Property, Plant and Equipment(Net PPE) was $300 Mil.
Depreciation, Depletion and Amortization(DDA) was $113 Mil.
Selling, General & Admin. Expense(SGA) was $276 Mil.
Total Current Liabilities was $1,226 Mil.
Long-Term Debt was $0 Mil.
Net Income was 4.2 + -57.75 + -771.94 + 14.09 = $-811 Mil.
Non Operating Income was 0 + 0.867 + 3.011 + 0 = $4 Mil.
Cash Flow from Operations was 53.306 + 66.594 + 26.584 + 58.868 = $205 Mil.
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 $269 Mil.
Total Current Liabilities was $637 Mil.
Long-Term Debt was $16 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)
=(323.3 / 2725.828) / (420.955 / 3706.963)
=0.11860616 / 0.11355792
=1.0445

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)
=(1863.257 / 3706.963) / (1231.092 / 2725.828)
=0.50263706 / 0.45163965
=1.1129

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 - (2918.626 + 299.54) / 5442.127) / (1 - (3344.04 + 340.639) / 5884.387)
=0.40865658 / 0.3738211
=1.0932

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
=2725.828 / 3706.963
=0.7353

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))
=(124.585 / (124.585 + 340.639)) / (112.864 / (112.864 + 299.54))
=0.26779573 / 0.27367339
=0.9785

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)
=(276.186 / 2725.828) / (269.199 / 3706.963)
=0.10132187 / 0.07261982
=1.3952

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 + 1225.785) / 5442.127) / ((16.468 + 637.376) / 5884.387)
=0.22524006 / 0.11111506
=2.0271

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
=(-811.4 - 3.878 - 205.352) / 5442.127
=-0.1875

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 -3.86 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

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 1.21260.95570.96520.8190.78281.11721.09550.94520.90341.0932
SGI 1.33961.29371.01930.95161.28640.93940.93391.07441.08890.7353
DEPI 1.22850.77220.95261.07621.15761.23080.94980.95321.08970.9785
SGAI 1.74420.93180.74511.22880.65111.06341.11310.8860.95931.4215
LVGI 2.43960.86670.43431.14430.94621.01121.13021.08020.89042.0271
TATA -0.0772-0.0641-0.1208-0.0886-0.0457-0.0271-0.0803-0.0277-0.0521-0.1868
M-score -3.00-2.68-3.17-2.50-2.46-2.63-3.03-2.30-2.76-3.86

Marvell Technology Group Ltd Quarterly Data

Jan14Apr14Jul14Oct14Jan15Apr15Jul15Oct15Jan16Apr16
DSRI 1.27811.19560.94750.81910.85250.79550.98361.09081.04450.9737
GMI 1.0341.06321.06571.04841.01720.97541.03541.08491.11291.1384
AQI 0.94520.88660.86770.89310.90340.94851.00891.03441.09321.2734
SGI 1.07441.16781.22111.16421.08890.95740.85190.78470.73530.7319
DEPI 0.95320.92660.99671.04331.08971.09061.07011.01620.97850.977
SGAI 0.8860.82180.78650.82980.96081.11491.26181.34141.39521.3097
LVGI 1.08021.16081.04320.85210.89040.75931.78981.982.02710.9863
TATA -0.0307-0.0479-0.0442-0.0434-0.0522-0.037-0.1746-0.19-0.1875-0.0835
M-score -2.32-2.42-2.53-2.64-2.76-2.84-3.72-3.80-3.86-3.00
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