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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: -1.71
Current: -2.88

-4.76
-1.71

During the past 13 years, the highest Beneish M-Score of Bluelinx Holdings Inc was -1.71. 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 * 0.9425+0.528 * 1.0218+0.404 * 0.6639+0.892 * 0.9657+0.115 * 1.0181
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9167+4.679 * -0.0424-0.327 * 1.0303
=-2.88

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $187 Mil.
Revenue was 517.831 + 515.656 + 454.949 + 454.11 = $1,943 Mil.
Gross Profit was 60.824 + 59.983 + 50.196 + 49.815 = $221 Mil.
Total Current Assets was $483 Mil.
Total Assets was $599 Mil.
Property, Plant and Equipment(Net PPE) was $105 Mil.
Depreciation, Depletion and Amortization(DDA) was $9 Mil.
Selling, General & Admin. Expense(SGA) was $193 Mil.
Total Current Liabilities was $343 Mil.
Long-Term Debt was $248 Mil.
Net Income was 0.561 + 2.87 + -8.945 + -7.641 = $-13 Mil.
Non Operating Income was -0.263 + -0.029 + -0.358 + -0.012 = $-1 Mil.
Cash Flow from Operations was 17.994 + -8.702 + -37.545 + 41.127 = $13 Mil.
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 $219 Mil.
Total Current Liabilities was $218 Mil.
Long-Term Debt was $383 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)
=(187.344 / 1942.546) / (205.845 / 2011.558)
=0.0964425 / 0.10233113
=0.9425

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)
=(59.983 / 2011.558) / (60.824 / 1942.546)
=0.11614778 / 0.11367453
=1.0218

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 - (482.631 + 105.183) / 598.829) / (1 - (503.691 + 106.35) / 627.425)
=0.01839423 / 0.0277069
=0.6639

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
=1942.546 / 2011.558
=0.9657

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))
=(9.746 / (9.746 + 106.35)) / (9.452 / (9.452 + 105.183))
=0.08394777 / 0.082453
=1.0181

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)
=(193.456 / 1942.546) / (218.531 / 2011.558)
=0.09958889 / 0.10863768
=0.9167

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)
=((247.855 + 342.623) / 598.829) / ((382.514 + 217.977) / 627.425)
=0.98605445 / 0.95707216
=1.0303

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
=(-13.155 - -0.662 - 12.874) / 598.829
=-0.0424

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

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 -0.0692-0.042-0.1224-0.3038-0.0611-0.05170.0210.094-0.0008-0.0023
M-score -2.70-2.87-3.10-3.97-2.71-2.63-2.40-2.05-2.47-2.50

Bluelinx Holdings Inc Quarterly Data

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
DSRI 1.03430.95710.84620.81520.8931.03651.04550.97910.98220.9425
GMI 1.11131.13131.13581.10540.95670.9250.91730.9431.0081.0218
AQI 0.55460.86850.93520.99780.90981.00231.17960.85260.75250.6639
SGI 1.11451.13311.1281.06920.98770.95520.91980.95110.97770.9657
DEPI 1.07021.01390.91150.89280.90170.87730.91840.95050.97321.0181
SGAI 0.95911.01050.98780.99450.96390.9540.93010.91930.92990.9167
LVGI 1.00621.00931.00211.05161.01441.02351.0331.02821.02971.0303
TATA 0.07670.0145-0.0008-0.0753-0.05730.0226-0.0023-0.0166-0.0381-0.0424
M-score -2.10-2.32-2.47-2.91-2.93-2.43-2.50-2.71-2.79-2.88
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