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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: -4.76   Max: -1.73
Current: -2.43

-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 -2.67.


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 * 1.0365+0.528 * 0.925+0.404 * 1.0023+0.892 * 0.9552+0.115 * 0.8773
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.932+4.679 * 0.0226-0.327 * 1.0235
=-2.43

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $206 Mil.
Revenue was 549.845 + 531.494 + 443.944 + 486.275 = $2,012 Mil.
Gross Profit was 64.58 + 62.033 + 52.676 + 54.349 = $234 Mil.
Total Current Assets was $504 Mil.
Total Assets was $627 Mil.
Property, Plant and Equipment(Net PPE) was $106 Mil.
Depreciation, Depletion and Amortization(DDA) was $10 Mil.
Selling, General & Admin. Expense(SGA) was $213 Mil.
Total Current Liabilities was $218 Mil.
Long-Term Debt was $383 Mil.
Net Income was -0.859 + 3.236 + -8.608 + -2.457 = $-9 Mil.
Non Operating Income was -0.193 + 0.04 + -0.16 + -0.054 = $-0 Mil.
Cash Flow from Operations was 14.901 + -22.214 + -46.115 + 30.913 = $-23 Mil.
Accounts Receivable was $208 Mil.
Revenue was 557.952 + 604.592 + 503.153 + 440.298 = $2,106 Mil.
Gross Profit was 62.492 + 55.185 + 56.458 + 52.119 = $226 Mil.
Total Current Assets was $504 Mil.
Total Assets was $629 Mil.
Property, Plant and Equipment(Net PPE) was $108 Mil.
Depreciation, Depletion and Amortization(DDA) was $9 Mil.
Selling, General & Admin. Expense(SGA) was $240 Mil.
Total Current Liabilities was $211 Mil.
Long-Term Debt was $377 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)
=(205.845 / 2011.558) / (207.927 / 2105.995)
=0.10233113 / 0.098731
=1.0365

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)
=(62.033 / 2105.995) / (64.58 / 2011.558)
=0.1074333 / 0.11614778
=0.925

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 - (503.691 + 106.35) / 627.425) / (1 - (504.214 + 107.651) / 629.26)
=0.0277069 / 0.02764358
=1.0023

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
=2011.558 / 2105.995
=0.9552

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))
=(8.559 / (8.559 + 107.651)) / (9.746 / (9.746 + 106.35))
=0.07365115 / 0.08394777
=0.8773

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)
=(213.489 / 2011.558) / (239.822 / 2105.995)
=0.10613117 / 0.11387586
=0.932

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)
=((382.514 + 217.977) / 627.425) / ((377.014 + 211.379) / 629.26)
=0.95707216 / 0.93505546
=1.0235

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
=(-8.688 - -0.367 - -22.515) / 627.425
=0.0226

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

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.92310.96731.04331.02731.03430.95710.84620.81520.8931.0365
GMI 0.94310.98090.99271.01061.11131.13131.13581.10540.95670.925
AQI 1.57640.74550.65650.61560.55460.86851.03670.99780.90981.0023
SGI 1.06421.0731.08681.07631.11451.13311.1281.06920.98770.9552
DEPI 1.07291.07911.1431.08511.07021.01390.91150.89280.90170.8773
SGAI 0.9530.91550.95610.94580.95911.01050.98780.99450.94180.932
LVGI 0.95951.03641.04060.97591.00621.00931.00231.05161.01441.0235
TATA 0.04530.05130.0940.08160.07670.0145-0.0008-0.0753-0.05730.0226
M-score -2.05-2.31-2.05-2.13-2.10-2.32-2.43-2.91-2.92-2.43
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