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Maxim Integrated Products Inc (NAS:MXIM)
Beneish M-Score
-3.09 (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 -3.09 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: -3.09

-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 -2.94.


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 * 1.0707+0.528 * 1.04+0.404 * 0.9704+0.892 * 0.9342+0.115 * 0.6793
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9739+4.679 * -0.1246-0.327 * 1.0365
=-3.09

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $279 Mil.
Revenue was 555.252 + 510.831 + 562.51 + 582.517 = $2,211 Mil.
Gross Profit was 318.841 + 292.169 + 286.351 + 303.701 = $1,201 Mil.
Total Current Assets was $2,462 Mil.
Total Assets was $3,981 Mil.
Property, Plant and Equipment(Net PPE) was $749 Mil.
Depreciation, Depletion and Amortization(DDA) was $291 Mil.
Selling, General & Admin. Expense(SGA) was $290 Mil.
Total Current Liabilities was $342 Mil.
Long-Term Debt was $1,000 Mil.
Net Income was 139.81 + 67.469 + -72.143 + 98.659 = $234 Mil.
Non Operating Income was 0 + 0 + 0 + 40.435 = $40 Mil.
Cash Flow from Operations was 167.986 + 182.489 + 117.339 + 221.79 = $690 Mil.
Accounts Receivable was $278 Mil.
Revenue was 577.263 + 566.809 + 580.275 + 642.467 = $2,367 Mil.
Gross Profit was 315.268 + 314.077 + 338.821 + 368.96 = $1,337 Mil.
Total Current Assets was $2,181 Mil.
Total Assets was $4,168 Mil.
Property, Plant and Equipment(Net PPE) was $1,156 Mil.
Depreciation, Depletion and Amortization(DDA) was $271 Mil.
Selling, General & Admin. Expense(SGA) was $319 Mil.
Total Current Liabilities was $355 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)
=(278.502 / 2211.11) / (278.427 / 2366.814)
=0.12595574 / 0.11763789
=1.0707

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)
=(1337.126 / 2366.814) / (1201.062 / 2211.11)
=0.56494765 / 0.54319414
=1.04

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 - (2461.91 + 748.781) / 3981.468) / (1 - (2180.688 + 1155.589) / 4167.717)
=0.19359116 / 0.19949531
=0.9704

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
=2211.11 / 2366.814
=0.9342

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))
=(271.148 / (271.148 + 1155.589)) / (290.862 / (290.862 + 748.781))
=0.19004764 / 0.27977104
=0.6793

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)
=(289.948 / 2211.11) / (318.686 / 2366.814)
=0.13113233 / 0.13464767
=0.9739

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 + 342.033) / 3981.468) / ((1000 + 355.334) / 4167.717)
=0.33706989 / 0.32519818
=1.0365

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
=(233.795 - 40.435 - 689.604) / 3981.468
=-0.1246

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 -3.09 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 1.10141.08371.00361.16980.86350.96511.02520.98481.08611.0236
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 0.98371.05650.69310.7521.16420.8291.0041.02930.84460.7206
SGAI 1.63361.05721.12291.08330.97920.9761.12980.99370.99641.009
LVGI 1.29750.83850.89620.77162.74120.8471.00541.13381.37641.0296
TATA -0.0704-0.0916-0.0544-0.1413-0.105-0.1056-0.099-0.0922-0.0956-0.1249
M-score -2.35-2.81-2.40-3.28-2.25-2.98-2.76-3.11-2.82-3.20

Maxim Integrated Products Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 1.08341.02151.03120.9290.90540.93581.00261.07180.95921.0707
GMI 1.02921.07091.08611.07921.03511.01491.02361.05521.06021.04
AQI 1.38291.61341.41621.40060.85610.85170.86220.96441.0280.9704
SGI 1.00580.99231.0051.01880.99030.97830.94020.93480.93230.9342
DEPI 0.99030.91010.84460.78650.75420.76740.72060.55760.62390.6793
SGAI 1.01511.01240.99640.99921.00561.00651.0090.98070.97430.9739
LVGI 1.76981.14471.37641.39691.00811.01711.02961.09931.03261.0365
TATA -0.0825-0.0836-0.0987-0.1066-0.1246-0.1265-0.1249-0.1776-0.1449-0.1246
M-score -2.87-2.63-2.84-2.98-3.23-3.24-3.20-3.37-3.26-3.09
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