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Bluelinx Holdings Inc (NYSE:BXC)
Beneish M-Score
-2.71 (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 -2.71 suggests that the company is not a manipulator.

BXC' s 10-Year Beneish M-Score Range
Min: -4.74   Max: -1.82
Current: -2.71

-4.74
-1.82

During the past 13 years, the highest Beneish M-Score of Bluelinx Holdings Inc was -1.82. The lowest was -4.74. 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 * 0.9791+0.528 * 0.943+0.404 * 0.8526+0.892 * 0.9511+0.115 * 0.9505
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9203+4.679 * -0.0166-0.327 * 1.0282
=-2.71

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
Accounts Receivable was $178 Mil.
Revenue was 454.949 + 454.11 + 549.845 + 531.494 = $1,990 Mil.
Gross Profit was 50.196 + 49.815 + 64.58 + 62.033 = $227 Mil.
Total Current Assets was $480 Mil.
Total Assets was $599 Mil.
Property, Plant and Equipment(Net PPE) was $106 Mil.
Depreciation, Depletion and Amortization(DDA) was $9 Mil.
Selling, General & Admin. Expense(SGA) was $204 Mil.
Total Current Liabilities was $151 Mil.
Long-Term Debt was $439 Mil.
Net Income was -8.945 + -7.641 + -0.86 + 3.236 = $-14 Mil.
Non Operating Income was -0.358 + -0.012 + -0.193 + 0.04 = $-1 Mil.
Cash Flow from Operations was -37.545 + 41.127 + 14.901 + -22.214 = $-4 Mil.
Accounts Receivable was $191 Mil.
Revenue was 443.944 + 486.275 + 557.952 + 604.592 = $2,093 Mil.
Gross Profit was 52.676 + 54.349 + 62.492 + 55.185 = $225 Mil.
Total Current Assets was $485 Mil.
Total Assets was $612 Mil.
Property, Plant and Equipment(Net PPE) was $110 Mil.
Depreciation, Depletion and Amortization(DDA) was $9 Mil.
Selling, General & Admin. Expense(SGA) was $233 Mil.
Total Current Liabilities was $176 Mil.
Long-Term Debt was $409 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)
=(177.635 / 1990.398) / (190.766 / 2092.763)
=0.08924597 / 0.09115509
=0.9791

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)
=(49.815 / 2092.763) / (50.196 / 1990.398)
=0.10737097 / 0.11385864
=0.943

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 - (479.536 + 105.679) / 598.789) / (1 - (485.107 + 110.442) / 611.816)
=0.02266909 / 0.02658806
=0.8526

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
=1990.398 / 2092.763
=0.9511

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))
=(9.296 / (9.296 + 110.442)) / (9.399 / (9.399 + 105.679))
=0.07763617 / 0.08167504
=0.9505

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)
=(204.145 / 1990.398) / (233.235 / 2092.763)
=0.10256491 / 0.11144836
=0.9203

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)
=((438.826 + 150.513) / 598.789) / ((409.294 + 176.349) / 611.816)
=0.98421815 / 0.9572208
=1.0282

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
=(-14.21 - -0.523 - -3.731) / 598.789
=-0.0166

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 -2.71 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 0.71690.88431.09360.68471.54250.91121.19751.04330.84621.0455
GMI 0.99540.93070.95790.90230.96551.00510.97530.99271.13580.9173
AQI 0.82821.21341.30072.36170.95021.23730.49910.65650.93521.1796
SGI 1.53070.87150.78250.7250.59221.09620.97291.08681.1280.9198
DEPI 0.57560.93671.07050.91391.07481.17871.1831.1430.91150.9184
SGAI 0.99461.15831.24841.12261.170.95990.9660.95610.98780.931
LVGI 0.95540.96371.00690.9911.05811.10770.96031.04061.00211.033
TATA -0.0692-0.042-0.1224-0.3038-0.0726-0.05170.01960.094-0.0008-0.0023
M-score -2.70-2.87-3.10-3.97-2.76-2.63-2.41-2.05-2.47-2.50

Bluelinx Holdings Inc Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 1.04331.02731.03430.95710.84620.81520.8931.03651.04550.9791
GMI 0.99271.01061.11131.13131.13581.10540.95670.9250.91730.943
AQI 0.65650.61560.55460.86850.93520.99780.90981.00231.17960.8526
SGI 1.08681.07631.11451.13311.1281.06920.98770.95520.91980.9511
DEPI 1.1431.08511.07021.01390.91150.89280.90170.87730.91840.9505
SGAI 0.95610.94580.95911.01050.98780.99450.94180.9320.9310.9203
LVGI 1.04060.97591.00621.00931.00211.05161.01441.02351.0331.0282
TATA 0.09720.08330.07910.0144-0.0008-0.0753-0.05730.0226-0.0023-0.0166
M-score -2.04-2.12-2.08-2.32-2.47-2.91-2.92-2.43-2.50-2.71
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