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Buckeye Technologies, Inc. (NYSE:BKI)
Beneish M-Score
0.00 (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.

Buckeye Technologies, Inc. has a M-score of -2.59 suggests that the company is not a manipulator.

BKI' s 10-Year Beneish M-Score Range
Min: 0   Max: 0
Current: 0

During the past 13 years, the highest Beneish M-Score of Buckeye Technologies, Inc. was 0.00. The lowest was 0.00. And the median was 0.00.


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 Buckeye Technologies, 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 * 1.1448+0.528 * 0.9894+0.404 * 1.3944+0.892 * 0.8589+0.115 * 1.1793
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1526+4.679 * -0.0712-0.327 * 0.7825
=-2.59

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

This Year (Mar13) TTM:Last Year (Mar12) TTM:
Accounts Receivable was $128.6 Mil.
Revenue was 195.562 + 204.333 + 196.958 + 210.652 = $807.5 Mil.
Gross Profit was 43.358 + 47.319 + 50.12 + 53.379 = $194.2 Mil.
Total Current Assets was $299.8 Mil.
Total Assets was $884.4 Mil.
Property, Plant and Equipment(Net PPE) was $532.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $49.6 Mil.
Selling, General & Admin. Expense(SGA) was $49.0 Mil.
Total Current Liabilities was $64.1 Mil.
Long-Term Debt was $62.3 Mil.
Net Income was 28.262 + 12.909 + 29.491 + 28.515 = $99.2 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was 46.061 + 25.019 + 3.736 + 87.369 = $162.2 Mil.
Accounts Receivable was $130.8 Mil.
Revenue was 217.065 + 227.097 + 240.067 + 255.9 = $940.1 Mil.
Gross Profit was 52.819 + 54.435 + 56.852 + 59.567 = $223.7 Mil.
Total Current Assets was $324.9 Mil.
Total Assets was $842.1 Mil.
Property, Plant and Equipment(Net PPE) was $481.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $53.8 Mil.
Selling, General & Admin. Expense(SGA) was $49.5 Mil.
Total Current Liabilities was $83.6 Mil.
Long-Term Debt was $70.1 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)
=(128.624 / 807.505) / (130.803 / 940.129)
=0.1592857 / 0.13913303
=1.1448

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)
=(47.319 / 940.129) / (43.358 / 807.505)
=0.23791735 / 0.24046415
=0.9894

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 - (299.784 + 532.278) / 884.364) / (1 - (324.927 + 481.474) / 842.118)
=0.05914081 / 0.0424133
=1.3944

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
=807.505 / 940.129
=0.8589

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))
=(53.835 / (53.835 + 481.474)) / (49.621 / (49.621 + 532.278))
=0.10056808 / 0.08527425
=1.1793

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)
=(49.049 / 807.505) / (49.543 / 940.129)
=0.06074142 / 0.05269809
=1.1526

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)
=((62.271 + 64.08) / 884.364) / ((70.139 + 83.62) / 842.118)
=0.14287217 / 0.18258605
=0.7825

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
=(99.177 - 0 - 162.185) / 884.364
=-0.0712

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.

Buckeye Technologies, Inc. has a M-score of -2.59 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.

Buckeye Technologies, Inc. Annual Data

Jun03Jun04Jun05Jun06Jun07Jun08Jun09Jun10Jun11Jun12
DSRI 1.27480.86840.96960.94440.96991.01691.03531.58150.6140.9118
GMI 0.9411.09640.69991.22950.79950.94571.25030.90290.73470.8989
AQI 1.06771.1321.05351.05930.98960.98130.015911.55732.11490.8879
SGI 1.00921.02471.0851.0221.05611.0730.9141.00251.19680.9885
DEPI 0.92380.9490.98840.99570.97061.02071.03950.97830.94850.9323
SGAI 1.01211.09250.941.080.93220.9371.07191.0360.89810.9138
LVGI 0.97921.04140.93540.96640.88680.86861.02890.74730.64150.7037
TATA -0.0721-0.1075-0.0615-0.0598-0.0854-0.0448-0.2356-0.0128-0.1009-0.0976
M-score -2.56-3.01-2.83-2.65-2.92-2.59-3.912.29-2.69-3.02

Buckeye Technologies, Inc. Quarterly Data

Dec10Mar11Jun11Sep11Dec11Mar12Jun12Sep12Dec12Mar13
DSRI 0.64440.60470.6140.74030.84450.83450.91181.07381.17051.1448
GMI 0.81490.78410.730.73450.76630.84280.89890.93540.96740.9894
AQI 1.97342.56132.11491.68831.44010.67180.88790.8010.77391.3944
SGI 1.13861.17341.19681.20741.191.10020.98850.9030.86280.8589
DEPI 0.98530.96890.94850.90720.83550.8680.93231.01821.14641.1793
SGAI 0.94310.90840.89720.89850.8910.89970.91381.00551.08121.1526
LVGI 0.66450.64450.64150.73660.70510.70090.70370.78310.93240.7825
TATA -0.0898-0.0861-0.1009-0.0659-0.0973-0.0912-0.0976-0.0768-0.0562-0.0712
M-score -2.69-2.45-2.69-2.61-2.76-3.09-3.02-2.90-2.79-2.59
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