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Maxim Integrated Products Inc (NAS:MXIM)
Beneish M-Score
-2.96 (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 -2.96 suggests that the company is not a manipulator.

MXIM' s 10-Year Beneish M-Score Range
Min: -4   Max: -1.71
Current: -2.96

-4
-1.71

During the past 13 years, the highest Beneish M-Score of Maxim Integrated Products Inc was -1.71. The lowest was -4.00. 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 * 0.929+0.528 * 1.0792+0.404 * 1.4006+0.892 * 1.0188+0.115 * 0.7865
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9992+4.679 * -0.1035-0.327 * 1.3969
=-2.96

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $282 Mil.
Revenue was 580.275 + 642.467 + 605.681 + 620.274 = $2,449 Mil.
Gross Profit was 338.821 + 368.96 + 339.937 + 328.672 = $1,376 Mil.
Total Current Assets was $2,028 Mil.
Total Assets was $4,305 Mil.
Property, Plant and Equipment(Net PPE) was $1,304 Mil.
Depreciation, Depletion and Amortization(DDA) was $257 Mil.
Selling, General & Admin. Expense(SGA) was $327 Mil.
Total Current Liabilities was $335 Mil.
Long-Term Debt was $1,001 Mil.
Net Income was 99.98 + 84.793 + 122.544 + 44.353 = $352 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 116.997 + 234.084 + 211.698 + 234.431 = $797 Mil.
Accounts Receivable was $298 Mil.
Revenue was 585.241 + 608.194 + 604.884 + 605.306 = $2,404 Mil.
Gross Profit was 347.196 + 371.399 + 376.102 + 363.375 = $1,458 Mil.
Total Current Assets was $1,782 Mil.
Total Assets was $3,764 Mil.
Property, Plant and Equipment(Net PPE) was $1,375 Mil.
Depreciation, Depletion and Amortization(DDA) was $205 Mil.
Selling, General & Admin. Expense(SGA) was $322 Mil.
Total Current Liabilities was $335 Mil.
Long-Term Debt was $501 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)
=(281.932 / 2448.697) / (297.888 / 2403.625)
=0.11513552 / 0.12393281
=0.929

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)
=(368.96 / 2403.625) / (338.821 / 2448.697)
=0.60661376 / 0.56209078
=1.0792

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 - (2027.779 + 1303.861) / 4305.125) / (1 - (1781.768 + 1374.544) / 3763.997)
=0.22612235 / 0.16144673
=1.4006

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
=2448.697 / 2403.625
=1.0188

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))
=(204.595 / (204.595 + 1374.544)) / (257.153 / (257.153 + 1303.861))
=0.12956111 / 0.16473459
=0.7865

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)
=(327.293 / 2448.697) / (321.525 / 2403.625)
=0.13366006 / 0.13376671
=0.9992

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 + 335.13) / 4305.125) / ((500.955 + 335.357) / 3763.997)
=0.31036404 / 0.22218721
=1.3969

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
=(351.67 - 0 - 797.21) / 4305.125
=-0.1035

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 -2.96 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 0.87241.34090.76171.08670.95271.34550.70871.09720.88521.0312
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 -2.79-2.38-2.89-2.47-3.28-2.26-2.98-2.76-3.11-2.82

Maxim Integrated Products Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 1.09720.9991.09941.00730.88520.9361.08341.02151.03120.929
GMI 1.02521.02871.0110.9870.98480.99371.02921.07091.08611.0792
AQI 1.31650.93550.89520.79330.86360.88231.38291.61341.41621.4006
SGI 0.97220.96310.97721.00541.01581.00541.00580.99231.0051.0188
DEPI 1.0040.98810.96380.99681.02931.04390.99030.91010.84460.7865
SGAI 1.12981.09371.04571.01460.99371.00241.01511.01240.99640.9992
LVGI 1.00540.93640.92731.37351.13381.19641.76981.14471.37641.3969
TATA -0.0975-0.1035-0.1071-0.0776-0.0915-0.0922-0.0832-0.0844-0.0956-0.1035
M-score -2.75-3.01-2.93-3.05-3.10-3.08-2.87-2.64-2.82-2.96
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