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Maxim Integrated Products Inc (NAS:MXIM)
Beneish M-Score
-3.26 (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 -3.26 suggests that the company is not a manipulator.

MXIM' s Beneish M-Score Range Over the Past 10 Years
Min: -4   Max: -1.71
Current: -3.26

-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 -2.96.


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 * 0.9592+0.528 * 1.0602+0.404 * 1.028+0.892 * 0.9323+0.115 * 0.6239
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9743+4.679 * -0.1449-0.327 * 1.0326
=-3.26

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

This Year (Dec15) TTM:Last Year (Dec14) TTM:
Accounts Receivable was $231 Mil.
Revenue was 510.831 + 562.51 + 582.517 + 577.263 = $2,233 Mil.
Gross Profit was 292.169 + 286.351 + 303.701 + 315.268 = $1,197 Mil.
Total Current Assets was $2,327 Mil.
Total Assets was $3,937 Mil.
Property, Plant and Equipment(Net PPE) was $771 Mil.
Depreciation, Depletion and Amortization(DDA) was $315 Mil.
Selling, General & Admin. Expense(SGA) was $294 Mil.
Total Current Liabilities was $315 Mil.
Long-Term Debt was $1,000 Mil.
Net Income was 67.469 + -72.143 + 98.659 + 79.433 = $173 Mil.
Non Operating Income was 0 + 0 + 40.435 + 0 = $40 Mil.
Cash Flow from Operations was 182.489 + 117.339 + 221.79 + 182.064 = $704 Mil.
Accounts Receivable was $259 Mil.
Revenue was 566.809 + 580.275 + 642.467 + 605.681 = $2,395 Mil.
Gross Profit was 314.077 + 338.821 + 368.96 + 339.937 = $1,362 Mil.
Total Current Assets was $2,073 Mil.
Total Assets was $4,125 Mil.
Property, Plant and Equipment(Net PPE) was $1,195 Mil.
Depreciation, Depletion and Amortization(DDA) was $264 Mil.
Selling, General & Admin. Expense(SGA) was $324 Mil.
Total Current Liabilities was $334 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)
=(231.18 / 2233.121) / (258.506 / 2395.232)
=0.10352328 / 0.10792524
=0.9592

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)
=(286.351 / 2395.232) / (292.169 / 2233.121)
=0.56854409 / 0.53624009
=1.0602

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 - (2326.629 + 770.548) / 3937.481) / (1 - (2072.99 + 1195.323) / 4124.527)
=0.21341157 / 0.20759083
=1.028

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
=2233.121 / 2395.232
=0.9323

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))
=(264.374 / (264.374 + 1195.323)) / (315.213 / (315.213 + 770.548))
=0.18111567 / 0.29031527
=0.6239

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)
=(293.936 / 2233.121) / (323.6 / 2395.232)
=0.13162565 / 0.13510174
=0.9743

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 + 315.251) / 3937.481) / ((1000 + 334.239) / 4124.527)
=0.33403361 / 0.32348897
=1.0326

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
=(173.418 - 40.435 - 703.682) / 3937.481
=-0.1449

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 -3.26 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 1.06851.08371.00361.16980.86350.96511.02520.98481.08611.0236
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 0.99321.05650.69310.7521.16420.8291.0041.02930.84460.7206
SGAI 1.31021.05721.12291.08330.97920.9761.12980.99370.99641.009
LVGI 1.29750.83850.89621.13011.87170.8471.00541.13381.37641.0296
TATA -0.0845-0.1086-0.0697-0.1413-0.105-0.1056-0.099-0.0922-0.0956-0.1249
M-score -2.38-2.89-2.47-3.40-1.97-2.98-2.76-3.11-2.82-3.20

Maxim Integrated Products Inc Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 0.9361.08341.02151.03120.9290.90540.93581.00261.07180.9592
GMI 0.99371.02921.07091.08611.07921.03511.01491.02361.05521.0602
AQI 0.88231.38291.61341.41621.40060.85610.85170.86220.96441.028
SGI 1.00541.00580.99231.0051.01880.99030.97830.94020.93480.9323
DEPI 1.04390.99030.91010.84460.78650.75420.76740.72060.55760.6239
SGAI 1.00241.01511.01240.99640.99921.00561.00651.0090.98070.9743
LVGI 1.19641.76981.14471.37641.39691.00811.01711.02961.09931.0326
TATA -0.0931-0.0841-0.0849-0.0958-0.1035-0.1213-0.1233-0.1249-0.1776-0.1449
M-score -3.08-2.88-2.64-2.82-2.96-3.21-3.22-3.20-3.37-3.26
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