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Bluelinx Holdings Inc (NYSE:BXC)
Beneish M-Score
-2.92 (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 -2.92 suggests that the company is not a manipulator.

BXC' s 10-Year Beneish M-Score Range
Min: -4.76   Max: -1.73
Current: -2.92

-4.76
-1.73

During the past 13 years, the highest Beneish M-Score of Bluelinx Holdings Inc was -1.73. The lowest was -4.76. And the median was -2.69.


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 * 0.893+0.528 * 0.9567+0.404 * 0.9098+0.892 * 0.9877+0.115 * 0.9017
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9418+4.679 * -0.0573-0.327 * 1.0144
=-2.92

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was $206 Mil.
Revenue was 531.494 + 443.944 + 486.275 + 557.952 = $2,020 Mil.
Gross Profit was 62.033 + 52.676 + 54.349 + 62.492 = $232 Mil.
Total Current Assets was $511 Mil.
Total Assets was $634 Mil.
Property, Plant and Equipment(Net PPE) was $108 Mil.
Depreciation, Depletion and Amortization(DDA) was $9 Mil.
Selling, General & Admin. Expense(SGA) was $215 Mil.
Total Current Liabilities was $224 Mil.
Long-Term Debt was $381 Mil.
Net Income was 3.236 + -8.608 + -2.457 + -3.206 = $-11 Mil.
Non Operating Income was 0.04 + -0.16 + -0.054 + -0.017 = $-0 Mil.
Cash Flow from Operations was -22.214 + -46.115 + 30.913 + 62.863 = $25 Mil.
Accounts Receivable was $233 Mil.
Revenue was 604.592 + 503.153 + 440.298 + 496.81 = $2,045 Mil.
Gross Profit was 55.185 + 56.458 + 52.119 + 60.531 = $224 Mil.
Total Current Assets was $587 Mil.
Total Assets was $714 Mil.
Property, Plant and Equipment(Net PPE) was $109 Mil.
Depreciation, Depletion and Amortization(DDA) was $9 Mil.
Selling, General & Admin. Expense(SGA) was $231 Mil.
Total Current Liabilities was $290 Mil.
Long-Term Debt was $382 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)
=(205.506 / 2019.665) / (232.994 / 2044.853)
=0.10175252 / 0.11394169
=0.893

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)
=(52.676 / 2044.853) / (62.033 / 2019.665)
=0.10968661 / 0.11464773
=0.9567

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 - (510.593 + 108.358) / 633.72) / (1 - (587.16 + 108.843) / 714.3)
=0.02330525 / 0.02561529
=0.9098

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
=2019.665 / 2044.853
=0.9877

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))
=(8.52 / (8.52 + 108.843)) / (9.488 / (9.488 + 108.358))
=0.07259528 / 0.08051185
=0.9017

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)
=(214.609 / 2019.665) / (230.723 / 2044.853)
=0.1062597 / 0.11283109
=0.9418

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)
=((380.659 + 224.102) / 633.72) / ((381.579 + 290.432) / 714.3)
=0.95430316 / 0.94079658
=1.0144

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
=(-11.035 - -0.191 - 25.447) / 633.72
=-0.0573

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 -2.92 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

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 1.130.92310.96731.04331.02731.03430.95710.84620.81520.893
GMI 0.96740.94310.98090.99271.01061.11131.13131.13581.10540.9567
AQI 0.46021.57640.74550.65650.61560.55460.86851.03670.99780.9098
SGI 1.03091.06421.0731.08681.07631.11451.13311.1281.06920.9877
DEPI 1.18691.07291.07911.1431.08511.07021.01390.91150.89280.9017
SGAI 0.98080.9530.91550.95610.94580.95911.01050.98780.99450.9418
LVGI 0.97240.95951.03641.04060.97591.00621.00931.00231.05161.0144
TATA 0.06160.04530.05130.0940.08160.07670.0145-0.0008-0.0753-0.0573
M-score -2.25-2.05-2.31-2.05-2.13-2.10-2.32-2.43-2.91-2.92
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