Switch to:
Maxim Integrated Products Inc (NAS:MXIM)
Beneish M-Score
-2.82 (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.

Maxim Integrated Products Inc has a M-score of -2.82 suggests that the company is not a manipulator.

MXIM' s 10-Year Beneish M-Score Range
Min: -3.66   Max: -1.67
Current: -2.82

-3.66
-1.67

During the past 13 years, the highest Beneish M-Score of Maxim Integrated Products Inc was -1.67. The lowest was -3.66. And the median was -2.93.


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 * 1.0312+0.528 * 1.0861+0.404 * 1.4162+0.892 * 1.005+0.115 * 0.8446
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9964+4.679 * -0.0958-0.327 * 1.3764
=-2.82

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
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.
Net Income was 84.793 + 122.544 + 44.353 + 103.12 = $355 Mil.
Non Operating Income was 0 + 0 + 0 + 0.837 = $1 Mil.
Cash Flow from Operations was 234.084 + 211.698 + 234.431 + 95.894 = $776 Mil.
Accounts Receivable was $285 Mil.
Revenue was 608.194 + 604.884 + 605.306 + 623.075 = $2,441 Mil.
Gross Profit was 371.399 + 376.102 + 363.375 + 385.691 = $1,497 Mil.
Total Current Assets was $1,940 Mil.
Total Assets was $3,936 Mil.
Property, Plant and Equipment(Net PPE) was $1,373 Mil.
Depreciation, Depletion and Amortization(DDA) was $207 Mil.
Selling, General & Admin. Expense(SGA) was $324 Mil.
Total Current Liabilities was $405 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)
=(295.828 / 2453.663) / (285.438 / 2441.459)
=0.12056586 / 0.11691288
=1.0312

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)
=(339.937 / 2441.459) / (368.96 / 2453.663)
=0.6129806 / 0.56436642
=1.0861

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 - (2086.702 + 1331.519) / 4405.618) / (1 - (1939.906 + 1373.124) / 3935.91)
=0.22412225 / 0.15825565
=1.4162

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
=2453.663 / 2441.459
=1.005

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))
=(207.136 / (207.136 + 1373.124)) / (244.593 / (244.593 + 1331.519))
=0.13107716 / 0.15518758
=0.8446

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)
=(324.734 / 2453.663) / (324.282 / 2441.459)
=0.13234662 / 0.13282304
=0.9964

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)
=((1001.026 + 398.635) / 4405.618) / ((503.573 + 404.893) / 3935.91)
=0.31769913 / 0.23081473
=1.3764

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
=(354.81 - 0.837 - 776.107) / 4405.618
=-0.0958

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 -2.82 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
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK