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Bluelinx Holdings Inc (NYSE:BXC)
Beneish M-Score
-2.55 (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 -2.55 suggests that the company is not a manipulator.

BXC' s 10-Year Beneish M-Score Range
Min: -3.97   Max: -2.04
Current: -2.55

-3.97
-2.04

During the past 13 years, the highest Beneish M-Score of Bluelinx Holdings Inc was -2.04. The lowest was -3.97. And the median was -2.63.


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 * 1.0455+0.528 * 0.9173+0.404 * 1.064+0.892 * 0.9198+0.115 * 0.9184
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.931+4.679 * -0.0023-0.327 * 1.0328
=-2.55

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
Accounts Receivable was $145 Mil.
Revenue was 454.11 + 549.845 + 531.494 + 443.944 = $1,979 Mil.
Gross Profit was 49.815 + 64.58 + 62.033 + 52.676 = $229 Mil.
Total Current Assets was $415 Mil.
Total Assets was $539 Mil.
Property, Plant and Equipment(Net PPE) was $105 Mil.
Depreciation, Depletion and Amortization(DDA) was $9 Mil.
Selling, General & Admin. Expense(SGA) was $206 Mil.
Total Current Liabilities was $117 Mil.
Long-Term Debt was $403 Mil.
Net Income was -7.641 + -0.859 + 3.236 + -8.608 = $-14 Mil.
Non Operating Income was -0.012 + -0.193 + 0.04 + -0.16 = $-0 Mil.
Cash Flow from Operations was 41.127 + 14.901 + -22.214 + -46.115 = $-12 Mil.
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.



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)
=(144.537 / 1979.393) / (150.297 / 2151.972)
=0.07302087 / 0.06984152
=1.0455

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)
=(64.58 / 2151.972) / (49.815 / 1979.393)
=0.10617424 / 0.11574457
=0.9173

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 - (414.894 + 105.267) / 538.982) / (1 - (401.725 + 111.119) / 530.246)
=0.03491953 / 0.03281873
=1.064

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
=1979.393 / 2151.972
=0.9198

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))
=(9.117 / (9.117 + 111.119)) / (9.473 / (9.473 + 105.267))
=0.07582588 / 0.08256057
=0.9184

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)
=(206.095 / 1979.393) / (240.667 / 2151.972)
=0.1041203 / 0.11183556
=0.931

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)
=((403.274 + 117.242) / 538.982) / ((388.995 + 106.826) / 530.246)
=0.96573912 / 0.9350773
=1.0328

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
=(-13.872 - -0.325 - -12.301) / 538.982
=-0.0023

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 -2.55 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 0.82821.21341.30072.36170.95021.23730.49910.65651.03671.064
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 0.95540.96371.00690.9911.05811.10770.96031.04061.00231.0328
TATA -0.0692-0.042-0.1224-0.3038-0.0726-0.05170.01960.094-0.0008-0.0023
M-score -2.70-2.87-3.10-3.97-2.76-2.63-2.41-2.05-2.43-2.55

Bluelinx Holdings Inc Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 0.96731.04331.02731.03430.95710.84620.81520.8931.03651.0455
GMI 0.98090.99271.01061.11131.13131.13581.10540.95670.9250.9173
AQI 0.74550.65650.61560.55460.86851.03670.99780.90981.00231.064
SGI 1.0731.08681.07631.11451.13311.1281.06920.98770.95520.9198
DEPI 1.07911.1431.08511.07021.01390.91150.89280.90170.87730.9184
SGAI 0.91550.95610.94580.95911.01050.98780.99450.94180.9320.931
LVGI 1.03641.04060.97591.00621.00931.00231.05161.01441.02351.0328
TATA 0.05490.09720.08330.07910.0144-0.0008-0.0753-0.05730.0226-0.0023
M-score -2.29-2.04-2.12-2.08-2.32-2.43-2.91-2.92-2.43-2.55
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