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Maxim Integrated Products Inc (NAS:MXIM)
Beneish M-Score
-3.03 (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 -3.03 suggests that the company is not a manipulator.

MXIM' s Beneish M-Score Range Over the Past 10 Years
Min: -3.79   Max: -1.59
Current: -3.03

-3.79
-1.59

During the past 13 years, the highest Beneish M-Score of Maxim Integrated Products Inc was -1.59. The lowest was -3.79. And the median was -2.95.


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 * 0.9366+0.528 * 0.8963+0.404 * 0.744+0.892 * 0.9583+0.115 * 1.4588
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0007+4.679 * -0.0696-0.327 * 1.0644
=-3.03

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

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $254 Mil.
Revenue was 561.396 + 566.126 + 555.252 + 510.831 = $2,194 Mil.
Gross Profit was 345.732 + 347.027 + 318.841 + 292.169 = $1,304 Mil.
Total Current Assets was $2,834 Mil.
Total Assets was $4,193 Mil.
Property, Plant and Equipment(Net PPE) was $678 Mil.
Depreciation, Depletion and Amortization(DDA) was $186 Mil.
Selling, General & Admin. Expense(SGA) was $288 Mil.
Total Current Liabilities was $532 Mil.
Long-Term Debt was $991 Mil.
Net Income was 137.614 + 92.339 + 139.81 + 67.469 = $437 Mil.
Non Operating Income was 0 + 0.962 + 0 + 0 = $1 Mil.
Cash Flow from Operations was 123.402 + 254.071 + 167.986 + 182.489 = $728 Mil.
Accounts Receivable was $282 Mil.
Revenue was 562.51 + 582.517 + 577.263 + 566.809 = $2,289 Mil.
Gross Profit was 286.351 + 303.701 + 315.268 + 314.077 = $1,219 Mil.
Total Current Assets was $2,279 Mil.
Total Assets was $3,945 Mil.
Property, Plant and Equipment(Net PPE) was $806 Mil.
Depreciation, Depletion and Amortization(DDA) was $369 Mil.
Selling, General & Admin. Expense(SGA) was $300 Mil.
Total Current Liabilities was $346 Mil.
Long-Term Debt was $1,000 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)
=(253.518 / 2193.605) / (282.471 / 2289.099)
=0.1155714 / 0.12339833
=0.9366

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)
=(1219.397 / 2289.099) / (1303.769 / 2193.605)
=0.53269736 / 0.59434994
=0.8963

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 - (2833.914 + 678.447) / 4192.616) / (1 - (2279.046 + 805.58) / 3944.886)
=0.16225073 / 0.21806967
=0.744

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
=2193.605 / 2289.099
=0.9583

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))
=(368.712 / (368.712 + 805.58)) / (186.069 / (186.069 + 678.447))
=0.31398664 / 0.2152291
=1.4588

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)
=(287.756 / 2193.605) / (300.071 / 2289.099)
=0.1311795 / 0.13108695
=1.0007

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)
=((990.685 + 531.967) / 4192.616) / ((1000 + 345.954) / 3944.886)
=0.36317469 / 0.34118958
=1.0644

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
=(437.232 - 0.962 - 727.948) / 4192.616
=-0.0696

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 -3.03 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 local exchange's currency.

Maxim Integrated Products Inc Annual Data

Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15Jun16
DSRI 0.76171.08670.95271.34550.70871.09720.88521.03121.00260.967
GMI 1.08371.00361.16980.86350.96511.02520.98481.08611.02360.9724
AQI 1.36721.63710.89093.05391.07411.31650.86361.41620.85290.908
SGI 1.0821.02170.80181.21361.23770.97221.01581.0050.94020.9514
DEPI 1.05650.69310.7521.16420.8291.0041.02930.84460.72060.8251
SGAI 1.05721.12291.05871.00190.9761.12980.99370.99641.0090.9857
LVGI 0.83850.89620.77162.74120.8471.00541.13381.37641.02351.1617
TATA -0.0916-0.0544-0.1413-0.105-0.1056-0.099-0.0914-0.0987-0.1253-0.117
M-score -2.81-2.40-3.28-2.26-2.98-2.76-3.10-2.84-3.21-3.22

Maxim Integrated Products Inc Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 1.03120.9290.90540.93581.00261.07180.95921.07070.9670.9366
GMI 1.08611.07921.03511.01491.02361.05521.06021.040.97240.8963
AQI 1.41621.40060.85610.85170.85290.96441.0280.97040.9080.744
SGI 1.0051.01880.99030.97830.94020.93480.93230.93420.95140.9583
DEPI 0.84460.78650.75420.70370.66760.52470.58430.74080.89061.4588
SGAI 0.99640.99921.00561.00651.0090.98070.97430.97390.98571.0007
LVGI 1.37641.39691.00811.01711.02351.09931.03261.03651.16171.0644
TATA -0.0987-0.1066-0.1246-0.11-0.109-0.1602-0.1275-0.1246-0.117-0.0696
M-score -2.84-2.98-3.23-3.17-3.14-3.29-3.19-3.08-3.22-3.03
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