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Marvell Technology Group Ltd (NAS:MRVL)
Beneish M-Score
-2.27 (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 -2.27 suggests that the company is not a manipulator.

MRVL' s 10-Year Beneish M-Score Range
Min: -3.19   Max: -1.83
Current: -2.27

-3.19
-1.83

During the past 13 years, the highest Beneish M-Score of Marvell Technology Group Ltd was -1.83. The lowest was -3.19. And the median was -2.49.


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 * 1.2781+0.528 * 1.034+0.404 * 0.9452+0.892 * 1.0744+0.115 * 0.9532
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8923+4.679 * -0.0243-0.327 * 1.0342
=-2.27

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

This Year (Jan14) TTM:Last Year (Jan13) TTM:
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 $0 Mil.
Net Income was 97.129 + 103.156 + 61.826 + 53.209 = $315 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 100.489 + 177.199 + 86.496 + 83.855 = $448 Mil.
Accounts Receivable was $330 Mil.
Revenue was 775.294 + 780.881 + 816.104 + 796.351 = $3,169 Mil.
Gross Profit was 404.461 + 406.378 + 434.265 + 430.029 = $1,675 Mil.
Total Current Assets was $2,585 Mil.
Total Assets was $5,262 Mil.
Property, Plant and Equipment(Net PPE) was $373 Mil.
Depreciation, Depletion and Amortization(DDA) was $144 Mil.
Selling, General & Admin. Expense(SGA) was $270 Mil.
Total Current Liabilities was $608 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)
=(453.496 / 3404.4) / (330.238 / 3168.63)
=0.13320879 / 0.10422107
=1.2781

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)
=(466.245 / 3168.63) / (454.497 / 3404.4)
=0.5286616 / 0.51130008
=1.034

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 - (2839.22 + 356.165) / 5451.01) / (1 - (2585.346 + 372.971) / 5261.764)
=0.41379946 / 0.43777087
=0.9452

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
=3404.4 / 3168.63
=1.0744

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))
=(143.728 / (143.728 + 372.971)) / (146.758 / (146.758 + 356.165))
=0.27816582 / 0.29181008
=0.9532

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)
=(259.169 / 3404.4) / (270.331 / 3168.63)
=0.07612766 / 0.08531479
=0.8923

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 + 651.306) / 5451.01) / ((0 + 607.888) / 5261.764)
=0.11948355 / 0.11552932
=1.0342

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
=(315.32 - 0 - 448.039) / 5451.01
=-0.0243

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 -2.27 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 1.01680.98111.05261.05330.93430.91750.95081.04241.07441.034
AQI 0.85050.86441.21260.95570.96520.8190.78281.11721.09550.9452
SGI 1.49381.3641.33961.29371.01930.95161.28640.93940.93391.0744
DEPI 1.00561.20331.22850.77220.95261.07621.15761.23080.94980.9532
SGAI 0.89520.83711.74420.93180.75751.20880.65111.06341.11310.8923
LVGI 0.96981.25252.43960.86670.43431.14430.94621.01121.13021.0342
TATA -0.0278-0.0257-0.0802-0.0635-0.1208-0.0886-0.0457-0.0271-0.0803-0.0243
M-score -2.21-2.47-3.01-2.65-3.19-2.50-2.46-2.63-3.03-2.27

Marvell Technology Group Ltd Quarterly Data

Oct11Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14
DSRI 0.96480.94371.03071.03710.94070.86830.96741.17671.20251.2781
GMI 1.02751.04241.05531.07291.0851.07441.05411.03671.02441.034
AQI 1.00831.11721.00821.04711.09361.09551.11131.0771.01480.9452
SGI 0.99910.93940.95170.92860.88320.93390.91720.93711.03571.0744
DEPI 1.25591.23081.21981.13821.01450.94980.95860.9170.93020.9532
SGAI 1.04371.06341.05541.08581.11241.11311.12331.08421.01040.8923
LVGI 0.98821.01121.02811.03950.98121.13021.08061.15381.2791.0342
TATA -0.0334-0.0271-0.0402-0.0457-0.0473-0.0803-0.0681-0.0533-0.0531-0.0243
M-score -2.63-2.63-2.64-2.68-2.79-3.03-2.88-2.65-2.59-2.27
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