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Marvell Technology earnings quality score

How much of the reported profit is backed by cash, and how many markers of managed earnings the filings show

Score33 / 100 · grade E · rank 995 of 1027

Marvell Technology (MRVL) scores 33 of 100 for earnings quality, grade E: rank 995 of 1027 companies and 196 of 203 in technology. It loses the most points on accruals of +4.3% of assets, higher than 95% of companies, Beneish M-score -1.62: flagged (above −1.78), Montier C-score 5 of 5 checks failed. It earns full or near-full marks for Piotroski F-score 8 of 9, profit about as variable as cash flow (smoothness 3.98). Revenue grew 31% in the year: fast growth raises accruals, the Beneish and Dechow scores and the C-score by construction, so a growing company scores lower than a steady one with the same accounting.

What earned and lost points

ComponentWhat the filings showPointsOf
Accrualsaccruals of +4.3% of assets, higher than 95% of companies120
Beneish M-scoreBeneish M-score -1.62: flagged (above −1.78)015
Dechow F-scoreDechow F-score 1.49 (above normal)1015
Montier C-scoreMontier C-score 5 of 5 checks failed015
Discretionary accrualsdiscretionary accruals of +11.7% of assets (modified Jones), larger than most110
Piotroski F-scorePiotroski F-score 8 of 9910
Non-GAAP gapadjusted earnings 8% below GAAP710
Earnings smoothnessprofit about as variable as cash flow (smoothness 3.98)55
MRVL: share of the available points, by componentMRVL: share of the available points, by componentAccruals5%Discretionary accruals8%Dechow F-score67%Piotroski F-score89%Non-GAAP gap73%Earnings smoothness100%

How the score is built

Eight published measures, each scored against the whole universe or on its own scale and weighted: accruals 20, discretionary accruals 10, Beneish M 15, Dechow F 15, Montier C 15, Piotroski F 10, the non-GAAP gap 10, smoothness 5. A measure that cannot be computed (Beneish for a bank, say) drops out and the rest is rescaled, so every company is scored on what applies to it.

Every company ranked → The full quality workbench, live → Marvell Technology: cash flow →

Computed from the companies’ own XBRL filings (latest fiscal year) by published formulas; a statistical screen, not an audit or an accusation. A low score means the reported profit shows more of the markers of managed or low-quality earnings than its peers. Not investment advice.