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Bluelinx Holdings, Inc. (NYSE:BXC)
Beneish M-Score
-2.43 (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.

Bluelinx Holdings, Inc. has a M-score of -2.43 suggests that the company is not a manipulator.

BXC' s 10-Year Beneish M-Score Range
Min: -3.97   Max: -2.05
Current: -2.43

-3.97
-2.05

During the past 13 years, the highest Beneish M-Score of Bluelinx Holdings, Inc. was -2.05. The lowest was -3.97. And the median was -2.67.


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 Bluelinx Holdings, 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 * 0.8462+0.528 * 1.1358+0.404 * 1.0367+0.892 * 1.128+0.115 * 0.9115
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9878+4.679 * -0.0008-0.327 * 1.0023
=-2.43

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

This Year (Dec13) TTM:Last Year (Dec12) TTM:
Accounts Receivable was $150 Mil.
Revenue was 486.275 + 557.952 + 604.592 + 503.153 = $2,152 Mil.
Gross Profit was 54.349 + 62.492 + 55.185 + 56.458 = $228 Mil.
Total Current Assets was $402 Mil.
Total Assets was $530 Mil.
Property, Plant and Equipment(Net PPE) was $111 Mil.
Depreciation, Depletion and Amortization(DDA) was $9 Mil.
Selling, General & Admin. Expense(SGA) was $241 Mil.
Total Current Liabilities was $107 Mil.
Long-Term Debt was $389 Mil.
Net Income was -2.457 + -3.206 + -22.306 + -12.649 = $-41 Mil.
Non Operating Income was -0.054 + -0.017 + -0.128 + -0.11 = $-0 Mil.
Cash Flow from Operations was 30.913 + 62.863 + -37.818 + -95.839 = $-40 Mil.
Accounts Receivable was $157 Mil.
Revenue was 440.298 + 496.81 + 517.026 + 453.708 = $1,908 Mil.
Gross Profit was 52.119 + 60.531 + 63.188 + 54.232 = $230 Mil.
Total Current Assets was $412 Mil.
Total Assets was $545 Mil.
Property, Plant and Equipment(Net PPE) was $115 Mil.
Depreciation, Depletion and Amortization(DDA) was $9 Mil.
Selling, General & Admin. Expense(SGA) was $216 Mil.
Total Current Liabilities was $140 Mil.
Long-Term Debt was $368 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)
=(150.297 / 2151.972) / (157.465 / 1907.842)
=0.06984152 / 0.08253566
=0.8462

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)
=(62.492 / 1907.842) / (54.349 / 2151.972)
=0.12059175 / 0.10617424
=1.1358

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 - (401.725 + 111.119) / 530.246) / (1 - (412.139 + 115.353) / 544.736)
=0.03281873 / 0.0316557
=1.0367

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
=2151.972 / 1907.842
=1.128

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))
=(8.565 / (8.565 + 115.353)) / (9.117 / (9.117 + 111.119))
=0.06911829 / 0.07582588
=0.9115

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)
=(240.667 / 2151.972) / (215.996 / 1907.842)
=0.11183556 / 0.11321483
=0.9878

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)
=((388.995 + 106.826) / 530.246) / ((368.446 + 139.736) / 544.736)
=0.9350773 / 0.93289593
=1.0023

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
=(-40.618 - -0.309 - -39.881) / 530.246
=-0.0008

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.

Bluelinx Holdings, Inc. has a M-score of -2.43 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.

Bluelinx Holdings, Inc. Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 0.71690.88431.09360.68471.54250.91121.19751.04330.8462
GMI 0.99540.93070.95790.90230.96551.00510.97530.99271.1358
AQI 0.82821.21341.30072.36170.95021.23730.49910.65651.0367
SGI 1.53070.87150.78250.7250.59221.09620.97291.08681.128
DEPI 0.57560.93671.07050.91391.07481.17871.1831.1430.9115
SGAI 0.99461.15831.24841.12261.170.95990.9660.95610.9878
LVGI 0.95540.96371.00690.9911.05811.10770.96031.04061.0023
TATA -0.0692-0.042-0.1224-0.3038-0.0611-0.05170.0210.094-0.0008
M-score -2.70-2.87-3.10-3.97-2.71-2.63-2.40-2.05-2.43

Bluelinx Holdings, Inc. Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DSRI 1.15371.19751.130.92310.96731.04331.02731.03430.95710.8462
GMI 0.98460.97530.96740.94310.98090.99271.01061.11131.13131.1358
AQI 0.49950.49910.46021.57640.74550.65650.61560.55460.86851.0367
SGI 0.96090.97291.03091.06421.0731.08681.07631.11451.13311.128
DEPI 1.20421.1831.18691.07291.07911.1431.08511.07021.01390.9115
SGAI 1.03610.9660.98080.9530.91550.95610.94580.95911.01050.9878
LVGI 0.98220.96030.97240.95951.03641.04060.97591.00621.00931.0023
TATA 0.02580.01950.06160.04530.05130.0940.08160.07670.0145-0.0008
M-score -2.44-2.41-2.25-2.05-2.31-2.05-2.13-2.10-2.32-2.43
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