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Maxim Integrated Products Piotroski F-Score

: 6 (As of Today)
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The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Maxim Integrated Products has an F-score of 6 indicating the company's financial situation is typical for a stable company.

NAS:MXIM' s Piotroski F-Score Range Over the Past 10 Years
Min: 1   Med: 7   Max: 9
Current: 6

1
9

During the past 13 years, the highest Piotroski F-Score of Maxim Integrated Products was 9. The lowest was 1. And the median was 7.


Maxim Integrated Products Piotroski F-Score Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Maxim Integrated Products Annual Data
Jun11 Jun12 Jun13 Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20
Piotroski F-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.00 8.00 7.00 6.00 6.00

Maxim Integrated Products Quarterly Data
Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20
Piotroski F-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.00 6.00 7.00 6.00 6.00

Competitive Comparison
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap.


Maxim Integrated Products Piotroski F-Score Distribution

* The bar in red indicates where Maxim Integrated Products's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Jun20) TTM:Last Year (Jun19) TTM:
Net Income was 140.156 + 146.05 + 161.19 + 207.298 = USD655 Mil.
Cash Flow from Operations was 141.27 + 237.465 + 209.791 + 212.329 = USD801 Mil.
Revenue was 533.04 + 551.07 + 561.916 + 545.369 = USD2,191 Mil.
Gross Profit was 343.323 + 360.524 + 366.437 + 362.368 = USD1,433 Mil.
Average Total Assets from the begining of this year (Jun19)
to the end of this year (Jun20) was
(3743.982 + 3680.787 + 3626.829 + 3548.935 + 3629.303) / 5 = USD3645.9672 Mil.
Total Assets at the begining of this year (Jun19) was USD3,744 Mil.
Long-Term Debt & Capital Lease Obligation was USD994 Mil.
Total Current Assets was USD2,318 Mil.
Total Current Liabilities was USD453 Mil.
Net Income was 197.423 + 131.892 + 130.613 + 367.558 = USD827 Mil.

Revenue was 638.495 + 576.906 + 542.383 + 556.545 = USD2,314 Mil.
Gross Profit was 430.236 + 373.048 + 340.831 + 356.391 = USD1,501 Mil.
Average Total Assets from the begining of last year (Jun18)
to the end of last year (Jun19) was
(4451.561 + 4548.552 + 3888.927 + 3803.854 + 3743.982) / 5 = USD4087.3752 Mil.
Total Assets at the begining of last year (Jun18) was USD4,452 Mil.
Long-Term Debt & Capital Lease Obligation was USD993 Mil.
Total Current Assets was USD2,540 Mil.
Total Current Liabilities was USD371 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Maxim Integrated Products's current Net Income (TTM) was 655. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Maxim Integrated Products's current Cash Flow from Operations (TTM) was 801. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Jun19)
=654.694/3743.982
=0.17486569

ROA (Last Year)=Net Income/Total Assets (Jun18)
=827.486/4451.561
=0.1858867

Maxim Integrated Products's return on assets of this year was 0.17486569. Maxim Integrated Products's return on assets of last year was 0.1858867. ==> Last year is higher ==> Score 0.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Maxim Integrated Products's current Net Income (TTM) was 655. Maxim Integrated Products's current Cash Flow from Operations (TTM) was 801. ==> 801 > 655 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Jun20)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun19 to Jun20
=994.022/3645.9672
=0.27263602

Gearing (Last Year: Jun19)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun18 to Jun19
=992.584/4087.3752
=0.24284142

Maxim Integrated Products's gearing of this year was 0.27263602. Maxim Integrated Products's gearing of last year was 0.24284142. ==> Last year is lower than this year ==> Score 0.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Jun20)=Total Current Assets/Total Current Liabilities
=2317.829/453.334
=5.11285057

Current Ratio (Last Year: Jun19)=Total Current Assets/Total Current Liabilities
=2539.5/371.167
=6.84193368

Maxim Integrated Products's current ratio of this year was 5.11285057. Maxim Integrated Products's current ratio of last year was 6.84193368. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Maxim Integrated Products's number of shares in issue this year was 268.551. Maxim Integrated Products's number of shares in issue last year was 276.068. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=1432.652/2191.395
=0.65376256

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=1500.506/2314.329
=0.64835466

Maxim Integrated Products's gross margin of this year was 0.65376256. Maxim Integrated Products's gross margin of last year was 0.64835466. ==> This year's gross margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Jun19)
=2191.395/3743.982
=0.58531131

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Jun18)
=2314.329/4451.561
=0.51989156

Maxim Integrated Products's asset turnover of this year was 0.58531131. Maxim Integrated Products's asset turnover of last year was 0.51989156. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+0+1+0+0+1+1+1
=6

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Maxim Integrated Products has an F-score of 6 indicating the company's financial situation is typical for a stable company.

Maxim Integrated Products  (NAS:MXIM) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


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