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Maxim Integrated Products Inc (NAS:MXIM)
Beneish M-Score
-3.22 (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 -3.22 suggests that the company is not a manipulator.

MXIM' s Beneish M-Score Range Over the Past 10 Years
Min: -3.72   Max: -1.59
Current: -3.22

-3.72
-1.59

During the past 13 years, the highest Beneish M-Score of Maxim Integrated Products Inc was -1.59. The lowest was -3.72. 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 * 0.967+0.528 * 0.9724+0.404 * 0.908+0.892 * 0.9514+0.115 * 0.8251
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9857+4.679 * -0.117-0.327 * 1.1617
=-3.22

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $257 Mil.
Revenue was 566.126 + 555.252 + 510.831 + 562.51 = $2,195 Mil.
Gross Profit was 347.027 + 318.841 + 292.169 + 286.351 = $1,244 Mil.
Total Current Assets was $2,807 Mil.
Total Assets was $4,235 Mil.
Property, Plant and Equipment(Net PPE) was $693 Mil.
Depreciation, Depletion and Amortization(DDA) was $245 Mil.
Selling, General & Admin. Expense(SGA) was $289 Mil.
Total Current Liabilities was $609 Mil.
Long-Term Debt was $990 Mil.
Net Income was 92.339 + 139.81 + 67.469 + -72.143 = $227 Mil.
Non Operating Income was 0.962 + 0 + 0 + 0 = $1 Mil.
Cash Flow from Operations was 254.071 + 167.986 + 182.489 + 117.339 = $722 Mil.
Accounts Receivable was $279 Mil.
Revenue was 582.517 + 577.263 + 566.809 + 580.275 = $2,307 Mil.
Gross Profit was 303.701 + 315.268 + 314.077 + 338.821 = $1,272 Mil.
Total Current Assets was $2,319 Mil.
Total Assets was $4,216 Mil.
Property, Plant and Equipment(Net PPE) was $1,091 Mil.
Depreciation, Depletion and Amortization(DDA) was $299 Mil.
Selling, General & Admin. Expense(SGA) was $308 Mil.
Total Current Liabilities was $383 Mil.
Long-Term Debt was $988 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)
=(256.531 / 2194.719) / (278.844 / 2306.864)
=0.11688558 / 0.12087579
=0.967

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)
=(1271.867 / 2306.864) / (1244.388 / 2194.719)
=0.55134026 / 0.56699195
=0.9724

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 - (2807.048 + 692.551) / 4234.616) / (1 - (2319.403 + 1090.739) / 4216.071)
=0.17357347 / 0.19115641
=0.908

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
=2194.719 / 2306.864
=0.9514

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))
=(299.396 / (299.396 + 1090.739)) / (244.637 / (244.637 + 692.551))
=0.21537189 / 0.26103301
=0.8251

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)
=(288.899 / 2194.719) / (308.065 / 2306.864)
=0.13163371 / 0.13354277
=0.9857

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)
=((990.09 + 609.403) / 4234.616) / ((987.687 + 383.177) / 4216.071)
=0.37771855 / 0.32515202
=1.1617

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
=(227.475 - 0.962 - 721.885) / 4234.616
=-0.117

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 -3.22 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

Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15Jun16
DSRI 0.76171.08670.95271.34550.70871.09720.88521.03121.00260.967
GMI 1.08371.00361.16980.86350.96511.02520.98481.08611.02360.9724
AQI 1.36721.63710.89093.05391.07411.31650.86361.41620.85290.908
SGI 1.0821.02170.80181.21361.23770.97221.01581.0050.94020.9514
DEPI 1.05650.69310.7521.16420.8291.0041.02930.84460.72060.8251
SGAI 1.05721.12291.05871.00190.9761.12980.99370.99641.0090.9857
LVGI 0.83850.89620.77162.74120.8471.00541.13381.37641.02351.1617
TATA -0.0916-0.0544-0.1413-0.105-0.1056-0.099-0.0914-0.0987-0.1253-0.117
M-score -2.81-2.40-3.28-2.26-2.98-2.76-3.10-2.84-3.21-3.22

Maxim Integrated Products Inc Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 1.02151.03120.9290.90540.93581.00261.07180.95921.07070.967
GMI 1.07091.08611.07921.03511.01491.02361.05521.06021.040.9724
AQI 1.61341.41621.40060.85610.85170.85290.96441.0280.97040.908
SGI 0.99231.0051.01880.99030.97830.94020.93480.93230.93420.9514
DEPI 0.91010.84460.78650.75420.76740.72060.55760.62390.67930.8251
SGAI 1.01240.99640.99921.00561.00651.0090.98070.97430.97390.9857
LVGI 1.14471.37641.39691.00811.01711.02351.09931.03261.03651.1617
TATA -0.0836-0.0987-0.1066-0.1246-0.1265-0.1253-0.1776-0.1449-0.1246-0.117
M-score -2.63-2.84-2.98-3.23-3.24-3.21-3.37-3.26-3.09-3.22
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