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Maxim Integrated Products Inc (NAS:MXIM)
Beneish M-Score
-3.20 (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 -3.20 suggests that the company is not a manipulator.

MXIM' s 10-Year Beneish M-Score Range
Min: -3.83   Max: -1.71
Current: -3.2

-3.83
-1.71

During the past 13 years, the highest Beneish M-Score of Maxim Integrated Products Inc was -1.71. The lowest was -3.83. And the median was -2.96.


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 * 1.0026+0.528 * 1.0236+0.404 * 0.8622+0.892 * 0.9402+0.115 * 0.7206
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.009+4.679 * -0.1249-0.327 * 1.0296
=-3.20

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

This Year (Jun15) TTM:Last Year (Jun14) TTM:
Accounts Receivable was $279 Mil.
Revenue was 582.517 + 577.263 + 566.809 + 580.275 = $2,307 Mil.
Gross Profit was 303.701 + 315.268 + 314.077 + 338.821 = $1,272 Mil.
Total Current Assets was $2,321 Mil.
Total Assets was $4,228 Mil.
Property, Plant and Equipment(Net PPE) was $1,091 Mil.
Depreciation, Depletion and Amortization(DDA) was $299 Mil.
Selling, General & Admin. Expense(SGA) was $308 Mil.
Total Current Liabilities was $383 Mil.
Long-Term Debt was $1,000 Mil.
Net Income was 98.659 + 79.433 + -72.034 + 99.98 = $206 Mil.
Non Operating Income was 40.435 + 0 + 0 + 0 = $40 Mil.
Cash Flow from Operations was 221.79 + 182.064 + 172.855 + 116.997 = $694 Mil.
Accounts Receivable was $296 Mil.
Revenue was 642.467 + 605.681 + 620.274 + 585.241 = $2,454 Mil.
Gross Profit was 368.96 + 339.937 + 328.672 + 347.196 = $1,385 Mil.
Total Current Assets was $2,087 Mil.
Total Assets was $4,406 Mil.
Property, Plant and Equipment(Net PPE) was $1,332 Mil.
Depreciation, Depletion and Amortization(DDA) was $245 Mil.
Selling, General & Admin. Expense(SGA) was $325 Mil.
Total Current Liabilities was $399 Mil.
Long-Term Debt was $1,001 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)
=(278.844 / 2306.864) / (295.828 / 2453.663)
=0.12087579 / 0.12056586
=1.0026

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)
=(315.268 / 2453.663) / (303.701 / 2306.864)
=0.56436642 / 0.55134026
=1.0236

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 - (2320.581 + 1090.739) / 4228.384) / (1 - (2086.702 + 1331.519) / 4405.618)
=0.19323316 / 0.22412225
=0.8622

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
=2306.864 / 2453.663
=0.9402

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))
=(244.593 / (244.593 + 1331.519)) / (299.396 / (299.396 + 1090.739))
=0.15518758 / 0.21537189
=0.7206

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)
=(308.065 / 2306.864) / (324.734 / 2453.663)
=0.13354277 / 0.13234662
=1.009

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 + 383.177) / 4228.384) / ((1001.026 + 398.635) / 4405.618)
=0.32711717 / 0.31769913
=1.0296

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
=(206.038 - 40.435 - 693.706) / 4228.384
=-0.1249

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 -3.20 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

Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15
DSRI 1.34090.76171.08670.95271.34550.70871.09720.88521.03121.0026
GMI 1.06851.08371.00361.16980.86350.96511.02520.98481.08611.0236
AQI 1.48871.36721.63710.89093.05391.07411.31650.86361.41620.8622
SGI 1.11081.0821.02170.80181.21361.23770.97221.01581.0050.9402
DEPI 0.99321.05650.69310.7521.16420.8291.0041.02930.84460.7206
SGAI 1.31021.05721.12291.05871.00190.9761.12980.99370.99641.009
LVGI 1.29750.83850.89620.77162.74120.8471.00541.13381.37641.0296
TATA -0.0845-0.1086-0.0697-0.1413-0.105-0.1056-0.099-0.0922-0.0956-0.1249
M-score -2.38-2.89-2.47-3.28-2.26-2.98-2.76-3.11-2.82-3.20

Maxim Integrated Products Inc Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 1.00730.88520.9361.08341.02151.03120.9290.90540.93581.0026
GMI 0.9870.98480.99371.02921.07091.08611.07921.03511.01491.0236
AQI 0.79330.86360.88231.38291.61341.41621.40060.85610.85170.8622
SGI 1.00541.01581.00541.00580.99231.0051.01880.99030.97830.9402
DEPI 0.99681.02931.04390.99030.91010.84460.78650.75420.76740.7206
SGAI 1.01460.99371.00241.01511.01240.99640.99921.00561.00651.009
LVGI 1.37351.13381.19641.76981.14471.37641.39691.00811.01711.0296
TATA -0.0776-0.0915-0.0922-0.0832-0.0844-0.0987-0.1066-0.1246-0.1265-0.1249
M-score -3.05-3.10-3.08-2.87-2.64-2.84-2.98-3.23-3.24-3.20
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