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Maxim Integrated Products Inc (NAS:MXIM)
Beneish M-Score
-2.64 (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.

Maxim Integrated Products Inc has a M-score of -2.64 suggests that the company is not a manipulator.

MXIM' s 10-Year Beneish M-Score Range
Min: -4.05   Max: -1.62
Current: -2.64

-4.05
-1.62

During the past 13 years, the highest Beneish M-Score of Maxim Integrated Products Inc was -1.62. The lowest was -4.05. And the median was -2.92.


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 Maxim Integrated Products Inc 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 * 1.0215+0.528 * 1.0709+0.404 * 1.6134+0.892 * 0.9923+0.115 * 0.9101
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0124+4.679 * -0.0846-0.327 * 1.1447
=-2.64

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

This Year (Mar14) TTM:Last Year (Mar13) TTM:
Accounts Receivable was $304 Mil.
Revenue was 605.681 + 620.274 + 585.241 + 608.194 = $2,419 Mil.
Gross Profit was 339.937 + 328.672 + 347.196 + 371.399 = $1,387 Mil.
Total Current Assets was $1,979 Mil.
Total Assets was $4,355 Mil.
Property, Plant and Equipment(Net PPE) was $1,355 Mil.
Depreciation, Depletion and Amortization(DDA) was $231 Mil.
Selling, General & Admin. Expense(SGA) was $324 Mil.
Total Current Liabilities was $391 Mil.
Long-Term Debt was $1,001 Mil.
Net Income was 122.544 + 44.353 + 103.12 + 119.014 = $389 Mil.
Non Operating Income was 0 + 0 + 0.837 + 0 = $1 Mil.
Cash Flow from Operations was 211.698 + 234.431 + 95.894 + 214.4 = $756 Mil.
Accounts Receivable was $300 Mil.
Revenue was 604.884 + 605.306 + 623.075 + 604.956 = $2,438 Mil.
Gross Profit was 376.102 + 363.375 + 385.691 + 371.989 = $1,497 Mil.
Total Current Assets was $2,336 Mil.
Total Assets was $4,334 Mil.
Property, Plant and Equipment(Net PPE) was $1,369 Mil.
Depreciation, Depletion and Amortization(DDA) was $209 Mil.
Selling, General & Admin. Expense(SGA) was $322 Mil.
Total Current Liabilities was $707 Mil.
Long-Term Debt was $504 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)
=(304.128 / 2419.39) / (300.046 / 2438.221)
=0.12570441 / 0.12305939
=1.0215

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)
=(328.672 / 2438.221) / (339.937 / 2419.39)
=0.61403663 / 0.57336932
=1.0709

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 - (1979.278 + 1355.268) / 4354.565) / (1 - (2335.958 + 1368.905) / 4334.118)
=0.23424131 / 0.1451864
=1.6134

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
=2419.39 / 2438.221
=0.9923

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))
=(209.499 / (209.499 + 1368.905)) / (231.393 / (231.393 + 1355.268))
=0.13272838 / 0.14583645
=0.9101

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)
=(323.664 / 2419.39) / (322.179 / 2438.221)
=0.13377918 / 0.13213691
=1.0124

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)
=((1000.871 + 391.388) / 4354.565) / ((503.573 + 706.963) / 4334.118)
=0.31972401 / 0.27930389
=1.1447

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
=(389.031 - 0.837 - 756.423) / 4354.565
=-0.0846

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.

Maxim Integrated Products Inc has a M-score of -2.64 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.

Maxim Integrated Products Inc Annual Data

Jun05Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14
DSRI 0.86271.34090.76171.08671.01261.57850.56931.09540.88521.0312
GMI 0.95091.06851.08371.00361.16980.86350.96511.02520.98481.0861
AQI 1.24961.48871.36721.63710.89093.05391.07411.31650.86361.4162
SGI 1.16051.11081.0821.02170.80181.21361.23770.97221.01581.005
DEPI 0.86170.99321.05650.69310.7521.16420.8291.0041.02930.8446
SGAI 0.79711.31021.05721.12291.05871.00190.9761.12980.99370.9964
LVGI 0.92731.29750.83850.89620.77162.74120.8471.00541.13381.3764
TATA -0.0964-0.0845-0.1086-0.0697-0.1413-0.105-0.1056-0.099-0.0922-0.0956
M-score -2.80-2.38-2.89-2.47-3.22-2.04-3.11-2.76-3.11-2.82

Maxim Integrated Products Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 0.9661.09540.99121.09941.00730.88520.9361.08341.02151.0312
GMI 1.01261.02521.02871.0110.9870.98480.99371.02921.07091.0861
AQI 1.29011.31650.93550.89520.79330.86360.88231.38291.61341.4162
SGI 1.00550.97220.96310.97721.00541.01581.00541.00580.99231.005
DEPI 1.04111.0040.98810.96380.99681.02931.04390.99030.91010.8446
SGAI 1.15361.12981.09371.04571.01460.99371.00241.01511.01240.9964
LVGI 1.01571.00540.93640.92731.37351.13381.19641.76981.14471.3764
TATA -0.1128-0.0975-0.1035-0.1071-0.0776-0.0915-0.0924-0.0834-0.0846-0.0958
M-score -2.94-2.76-3.01-2.93-3.05-3.10-3.08-2.87-2.64-2.82
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