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BlueLinx Holdings Inc (NYSE:BXC)
Beneish M-Score
-2.88 (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 -2.88 suggests that the company is not a manipulator.

BXC' s Beneish M-Score Range Over the Past 10 Years
Min: -4.76   Max: -1.73
Current: -2.88

-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 -2.71.


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 * 1.0505+0.528 * 0.9589+0.404 * 0.7477+0.892 * 0.9727+0.115 * 0.8894
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9864+4.679 * -0.0607-0.327 * 1.0219
=-2.88

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $182 Mil.
Revenue was 474.326 + 428.15 + 517.831 + 515.656 = $1,936 Mil.
Gross Profit was 57.596 + 51.47 + 60.824 + 59.983 = $230 Mil.
Total Current Assets was $460 Mil.
Total Assets was $568 Mil.
Property, Plant and Equipment(Net PPE) was $98 Mil.
Depreciation, Depletion and Amortization(DDA) was $10 Mil.
Selling, General & Admin. Expense(SGA) was $201 Mil.
Total Current Liabilities was $148 Mil.
Long-Term Debt was $424 Mil.
Net Income was -6.145 + -6.062 + 0.561 + 2.87 = $-9 Mil.
Non Operating Income was 0.372 + -0.221 + -0.263 + -0.029 = $-0 Mil.
Cash Flow from Operations was -51.64 + 68.18 + 17.994 + -8.702 = $26 Mil.
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 $209 Mil.
Total Current Liabilities was $151 Mil.
Long-Term Debt was $439 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)
=(181.507 / 1935.963) / (177.635 / 1990.398)
=0.09375541 / 0.08924597
=1.0505

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)
=(226.624 / 1990.398) / (229.873 / 1935.963)
=0.11385864 / 0.11873832
=0.9589

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 - (460.286 + 98.288) / 568.205) / (1 - (479.536 + 105.679) / 598.789)
=0.01694987 / 0.02266909
=0.7477

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
=1935.963 / 1990.398
=0.9727

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))
=(9.399 / (9.399 + 105.679)) / (9.939 / (9.939 + 98.288))
=0.08167504 / 0.09183475
=0.8894

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)
=(200.705 / 1935.963) / (209.186 / 1990.398)
=0.10367192 / 0.10509757
=0.9864

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)
=((423.625 + 147.854) / 568.205) / ((438.826 + 150.513) / 598.789)
=1.005762 / 0.98421815
=1.0219

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
=(-8.776 - -0.141 - 25.832) / 568.205
=-0.0607

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 -2.88 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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.88431.09360.68471.54250.91121.19751.04330.84621.04550.99
GMI 0.93070.95790.90230.96551.00510.97530.99271.13580.91730.9971
AQI 1.21341.30072.36170.95021.23730.49910.65651.03670.89850.6306
SGI 0.87150.78250.7250.59221.09620.97291.08681.1280.91980.9683
DEPI 0.93670.97111.00741.07481.17871.1831.1430.91150.91840.9435
SGAI 1.15831.24841.12261.170.95990.9660.95610.98780.9310.9819
LVGI 0.96371.00690.9911.05811.10770.96031.04061.00231.03261.0252
TATA -0.042-0.1224-0.2912-0.0611-0.05170.01960.094-0.0008-0.0023-0.0987
M-score -2.87-3.11-3.90-2.71-2.63-2.41-2.05-2.43-2.61-3.14

BlueLinx Holdings Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 0.84620.81520.8931.03651.04550.97910.98220.94250.991.0505
GMI 1.13581.10540.95670.9250.91730.9431.0081.02180.99710.9589
AQI 1.03670.99780.90981.00230.89850.85260.75250.66390.63060.7477
SGI 1.1281.06920.98770.95520.91980.95110.97770.96570.96830.9727
DEPI 0.91150.89280.90170.87730.91840.95050.97321.01810.94350.8894
SGAI 1.00921.01670.98680.97680.93350.92240.93220.91960.95840.9864
LVGI 1.00231.05161.01441.02351.03261.02821.02971.03031.02521.0219
TATA -0.0008-0.0753-0.05730.0226-0.0023-0.0166-0.0381-0.0424-0.0987-0.0607
M-score -2.44-2.92-2.93-2.44-2.61-2.71-2.79-2.88-3.14-2.88
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