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Marvell Technology Group Ltd (NAS:MRVL)
Beneish M-Score
-1.82 (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 -1.95 signals that the company is a manipulator.

MRVL' s Beneish M-Score Range Over the Past 10 Years
Min: -3.85   Max: -1.82
Current: -1.82

-3.85
-1.82

During the past 13 years, the highest Beneish M-Score of Marvell Technology Group Ltd was -1.82. The lowest was -3.85. And the median was -2.63.


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 * 1.0942+0.528 * 0.9538+0.404 * 1.2214+0.892 * 0.7629+0.115 * 0.9109
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.2165+4.679 * 0.0964-0.327 * 0.4426
=-1.95

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Jul16) TTM:Last Year (Jul15) TTM:
Accounts Receivable was $349 Mil.
Revenue was 626.404 + 540.822 + 616.158 + 674.89 = $2,458 Mil.
Gross Profit was 338.796 + 281.612 + 313.548 + 295.636 = $1,230 Mil.
Total Current Assets was $2,230 Mil.
Total Assets was $4,717 Mil.
Property, Plant and Equipment(Net PPE) was $275 Mil.
Depreciation, Depletion and Amortization(DDA) was $115 Mil.
Selling, General & Admin. Expense(SGA) was $263 Mil.
Total Current Liabilities was $504 Mil.
Long-Term Debt was $0 Mil.
Net Income was 51.305 + -22.679 + 4.2 + -57.75 = $-25 Mil.
Non Operating Income was 3.188 + -1.836 + -2.779 + 0.867 = $-1 Mil.
Cash Flow from Operations was 10.859 + -609.601 + 53.306 + 66.594 = $-479 Mil.
Accounts Receivable was $418 Mil.
Revenue was 710.492 + 724.288 + 857.452 + 930.136 = $3,222 Mil.
Gross Profit was 248.773 + 373.135 + 440.321 + 475.162 = $1,537 Mil.
Total Current Assets was $3,169 Mil.
Total Assets was $5,666 Mil.
Property, Plant and Equipment(Net PPE) was $322 Mil.
Depreciation, Depletion and Amortization(DDA) was $118 Mil.
Selling, General & Admin. Expense(SGA) was $283 Mil.
Total Current Liabilities was $1,369 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)
=(348.683 / 2458.274) / (417.721 / 3222.368)
=0.14184058 / 0.12963169
=1.0942

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)
=(1537.391 / 3222.368) / (1229.592 / 2458.274)
=0.47709976 / 0.50018509
=0.9538

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 - (2230.279 + 274.774) / 4716.676) / (1 - (3168.577 + 322.262) / 5665.956)
=0.46889441 / 0.38389232
=1.2214

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
=2458.274 / 3222.368
=0.7629

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))
=(118.27 / (118.27 + 322.262)) / (114.819 / (114.819 + 274.774))
=0.26847085 / 0.29471525
=0.9109

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)
=(262.806 / 2458.274) / (283.191 / 3222.368)
=0.10690672 / 0.08788289
=1.2165

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 + 504.488) / 4716.676) / ((0 + 1369.239) / 5665.956)
=0.10695837 / 0.24166072
=0.4426

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
=(-24.924 - -0.56 - -478.842) / 4716.676
=0.0964

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 -1.95 signals that the company is likely to 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 local exchange's 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 1.74420.93180.75751.20880.65111.06341.11310.8860.97781.3645
LVGI 2.43960.86670.43431.14430.94621.01121.13021.08020.89042.0271
TATA -0.0772-0.0641-0.1208-0.0886-0.0457-0.0271-0.081-0.0277-0.0521-0.1873
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

Jul14Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16
DSRI 0.94750.81910.85250.79550.98361.09081.04450.97371.09421.1573
GMI 1.06571.04841.01720.97541.03541.08491.11291.13840.95380.8567
AQI 0.86770.89310.90340.94851.00891.03441.09321.27341.22141.1935
SGI 1.22111.16421.08890.95740.85190.78470.73530.73190.76290.8216
DEPI 0.99671.04331.08971.09061.07011.01620.97850.9770.91090.9062
SGAI 0.78650.82980.97931.13341.28261.36381.36251.26741.21651.1233
LVGI 1.04320.85210.89040.75931.78981.982.02710.98630.44260.4433
TATA -0.0442-0.0434-0.0522-0.0372-0.1749-0.1903-0.1873-0.08250.09640.1117
M-score -2.53-2.64-2.76-2.85-3.72-3.80-3.85-2.99-1.95-1.82
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