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Marvell Technology Financial Strength

: 5 (As of Apr. 2022)
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Marvell Technology has the Financial Strength Rank of 5.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Marvell Technology's Interest Coverage for the quarter that ended in Apr. 2022 was 1.96. Marvell Technology's debt to revenue ratio for the quarter that ended in Apr. 2022 was 0.81. As of today, Marvell Technology's Altman Z-Score is 4.63.


Competitive Comparison

For the Semiconductors subindustry, Marvell Technology's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* 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. Note that "N/A" values will not show up in the chart.

   

Marvell Technology Financial Strength Distribution

For the Semiconductors industry and Technology sector, Marvell Technology's Financial Strength distribution charts can be found below:

* The bar in red indicates where Marvell Technology's Financial Strength falls into.



Marvell Technology Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Marvell Technology's Interest Expense for the months ended in Apr. 2022 was $-36 Mil. Its Operating Income for the months ended in Apr. 2022 was $71 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Apr. 2022 was $4,603 Mil.

Marvell Technology's Interest Coverage for the quarter that ended in Apr. 2022 is

Interest Coverage=-1*Operating Income (Q: Apr. 2022 )/Interest Expense (Q: Apr. 2022 )
=-1*71.1/-36.3
=1.96

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Marvell Technology's Debt to Revenue Ratio for the quarter that ended in Apr. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Apr. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(110.9 + 4602.5) / 5787.6
=0.81

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Marvell Technology has a Z-score of 4.63, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 4.63 is strong.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Marvell Technology  (NAS:MRVL) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Marvell Technology has the Financial Strength Rank of 5.


Marvell Technology Financial Strength Related Terms

Thank you for viewing the detailed overview of Marvell Technology's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


Marvell Technology Business Description

Marvell Technology logo
Address
1000 N. West Street, Suite 1200, Wilmington, DE, USA, 19801
Marvell Technology is a leading fabless chipmaker focused on networking and storage applications. Marvell serves the data center, carrier, enterprise, automotive, and consumer end markets with processors, optical interconnections, application-specific integrated circuits (ASICs), and merchant silicon for Ethernet applications. The firm is an active acquirer, with five large acquisitions since 2017 helping it pivot out of legacy consumer applications to focus on the cloud and 5G markets.
Executives
Andrews Sara C director C/O LOGMEIN, INC. 320 SUMMER STREET BOSTON MA 02210
Frank Edward H. director C/O FUSION-IO, INC. 2855 E. COTTONWOOD PARKWAY, SUITE 100 SALT LAKE CITY UT 84121
Nguyen Loi officer: Executive Vice President 1000 N. WEST STREET, SUITE 1200 WILMINGTON DE 19801
Yousefi Nariman officer: Executive Vice President 5300 CALIFORNIA AVENUE IRVINE CA 92617
Tamer Ford director 3945 FREEDOM CIRCLE SUITE 1100 SANTA CLARA CA 95054
Koopmans Chris officer: EVP, Chief Operations Officer 5488 MARVELL LANE SANTA CLARA CA 94061
Brown Tudor director C/O TESSERA TECHNOLOGIES, INC. 3025 ORCHARD PARKWAY SAN JOSE CA 95134
Knight Marachel director 5488 MARVELL LANE SANTA CLARA CA 95054
Strachan Michael G director LSI CORPORATION 1621 BARBER LANE MILPITAS CA 95035
Jarnac Dean E Jr. officer: EVP Worldwide Sales 5488 MARVELL LANE SANTA CLARA CA 95054
Christman Dan officer: EVP, Storage Business Group 5488 MARVELL LANE SANTA CLARA CA 95054
Hussain Muhammad Raghib officer: President, Products & Tech 5488 MARVELL LANE SANTA CLARA CA 95054
Meintjes Willem A officer: SVP, Chief Accounting Officer 5488 MARVELL LANE SANTA CLARA CA 95054
Buss Brad W director 198 CHAMPION COURT SAN JOSE CA 95134
Hill Richard director

Marvell Technology Headlines

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