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Maxim Integrated Products Inc. (NAS:MXIM)
Beneish M-Score
-2.88 (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 -2.88 suggests that the company is not a manipulator.

MXIM' s 10-Year Beneish M-Score Range
Min: -4.05   Max: -1.62
Current: -2.88

-4.05
-1.62

During the past 13 years, the highest Beneish M-Score of Maxim Integrated Products Inc. was -1.62. The lowest was -4.05. 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 * 1.0834+0.528 * 1.0292+0.404 * 1.3829+0.892 * 1.0058+0.115 * 0.9903
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0151+4.679 * -0.0841-0.327 * 1.7698
=-2.88

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

This Year (Dec13) TTM:Last Year (Dec12) TTM:
Accounts Receivable was $288 Mil.
Revenue was 620.274 + 585.241 + 608.194 + 604.884 = $2,419 Mil.
Gross Profit was 328.672 + 347.196 + 371.399 + 376.102 = $1,423 Mil.
Total Current Assets was $1,890 Mil.
Total Assets was $4,307 Mil.
Property, Plant and Equipment(Net PPE) was $1,372 Mil.
Depreciation, Depletion and Amortization(DDA) was $217 Mil.
Selling, General & Admin. Expense(SGA) was $325 Mil.
Total Current Liabilities was $381 Mil.
Long-Term Debt was $1,001 Mil.
Net Income was 44.353 + 103.12 + 119.014 + 131.388 = $398 Mil.
Non Operating Income was 0 + 0.837 + 1.609 + 1.131 = $4 Mil.
Cash Flow from Operations was 234.431 + 95.894 + 214.4 + 211.693 = $756 Mil.
Accounts Receivable was $265 Mil.
Revenue was 605.306 + 623.075 + 604.956 + 571.212 = $2,405 Mil.
Gross Profit was 363.375 + 385.691 + 371.989 + 335.43 = $1,456 Mil.
Total Current Assets was $1,724 Mil.
Total Assets was $3,739 Mil.
Property, Plant and Equipment(Net PPE) was $1,359 Mil.
Depreciation, Depletion and Amortization(DDA) was $213 Mil.
Selling, General & Admin. Expense(SGA) was $318 Mil.
Total Current Liabilities was $674 Mil.
Long-Term Debt was $4 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)
=(288.285 / 2418.593) / (264.545 / 2404.549)
=0.11919533 / 0.11001855
=1.0834

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)
=(347.196 / 2404.549) / (328.672 / 2418.593)
=0.60572066 / 0.58851117
=1.0292

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 - (1890.136 + 1372.393) / 4306.882) / (1 - (1723.995 + 1359.014) / 3738.553)
=0.2424847 / 0.17534699
=1.3829

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
=2418.593 / 2404.549
=1.0058

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))
=(212.584 / (212.584 + 1359.014)) / (217.119 / (217.119 + 1372.393))
=0.13526614 / 0.13659475
=0.9903

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)
=(324.938 / 2418.593) / (318.236 / 2404.549)
=0.13435001 / 0.13234748
=1.0151

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)
=((1000.871 + 381.116) / 4306.882) / ((3.997 + 673.819) / 3738.553)
=0.32087877 / 0.18130437
=1.7698

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
=(397.875 - 3.577 - 756.418) / 4306.882
=-0.0841

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 -2.88 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

Jun04Jun05Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13
DSRI 1.25910.86271.34090.76171.08671.01261.57850.56931.09540.8852
GMI 1.04710.95091.06851.08371.00361.16980.86350.96511.02520.9848
AQI 0.81011.24961.48871.36721.63710.89093.05391.07411.31650.8636
SGI 1.24921.16051.11081.0821.02170.80181.21361.23770.97221.0158
DEPI 1.17960.86170.99321.05650.69310.7521.16420.8291.0041.0293
SGAI 1.24180.79711.31021.05721.12291.05871.00190.9761.12980.9937
LVGI 1.37110.92731.29750.83850.89620.77162.74120.8471.00541.1338
TATA -0.1509-0.0964-0.0845-0.1086-0.0697-0.1413-0.105-0.1056-0.099-0.0922
M-score -2.92-2.80-2.38-2.89-2.47-3.22-2.04-3.11-2.76-3.11

Maxim Integrated Products Inc. Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DSRI 0.7810.78780.9661.09540.99121.09941.00730.88520.9361.0834
GMI 0.98460.99931.01261.02521.02871.0110.9870.98480.99371.0292
AQI 1.24271.30331.29011.31650.93550.89520.79330.86360.88231.3829
SGI 1.14151.06341.00550.97220.96310.97721.00541.01581.00541.0058
DEPI 0.90981.00421.04111.0040.98810.96380.99681.02931.04390.9903
SGAI 1.05171.10641.15361.12981.09371.04571.01460.99371.00241.0151
LVGI 0.99811.03571.01571.00540.93640.92731.37351.13381.19641.7698
TATA -0.0905-0.1107-0.1128-0.0975-0.1035-0.1071-0.0778-0.0922-0.0931-0.0841
M-score -2.91-3.04-2.94-2.76-3.01-2.93-3.05-3.11-3.08-2.88
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