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BlueLinx Holdings Inc (NYSE:BXC)
Beneish M-Score
-3.24 (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 -3.24 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: -3.24

-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 -2.73.


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 * 0.9419+0.528 * 0.9655+0.404 * 1.0527+0.892 * 0.9771+0.115 * 0.8344
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0104+4.679 * -0.1411-0.327 * 1.0308
=-3.24

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $182 Mil.
Revenue was 509.011 + 474.326 + 428.15 + 517.831 = $1,929 Mil.
Gross Profit was 57.387 + 57.596 + 51.47 + 60.824 = $227 Mil.
Total Current Assets was $430 Mil.
Total Assets was $530 Mil.
Property, Plant and Equipment(Net PPE) was $90 Mil.
Depreciation, Depletion and Amortization(DDA) was $10 Mil.
Selling, General & Admin. Expense(SGA) was $202 Mil.
Total Current Liabilities was $197 Mil.
Long-Term Debt was $340 Mil.
Net Income was -3.144 + -6.145 + -6.062 + 0.561 = $-15 Mil.
Non Operating Income was -0.135 + 0.372 + -0.221 + -0.263 = $-0 Mil.
Cash Flow from Operations was 25.697 + -51.64 + 68.18 + 17.994 = $60 Mil.
Accounts Receivable was $197 Mil.
Revenue was 515.656 + 454.949 + 454.11 + 549.845 = $1,975 Mil.
Gross Profit was 59.983 + 50.196 + 49.815 + 64.58 = $225 Mil.
Total Current Assets was $508 Mil.
Total Assets was $624 Mil.
Property, Plant and Equipment(Net PPE) was $104 Mil.
Depreciation, Depletion and Amortization(DDA) was $9 Mil.
Selling, General & Admin. Expense(SGA) was $205 Mil.
Total Current Liabilities was $349 Mil.
Long-Term Debt was $264 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)
=(181.623 / 1929.318) / (197.345 / 1974.56)
=0.09413845 / 0.09994378
=0.9419

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)
=(224.574 / 1974.56) / (227.277 / 1929.318)
=0.11373369 / 0.11780173
=0.9655

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 - (430.227 + 89.923) / 529.934) / (1 - (508.231 + 104.399) / 623.566)
=0.01846268 / 0.01753784
=1.0527

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
=1929.318 / 1974.56
=0.9771

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))
=(9.416 / (9.416 + 104.399)) / (9.897 / (9.897 + 89.923))
=0.08273075 / 0.09914847
=0.8344

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)
=(202.324 / 1929.318) / (204.936 / 1974.56)
=0.10486815 / 0.10378819
=1.0104

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)
=((340.222 + 196.584) / 529.934) / ((264.113 + 348.658) / 623.566)
=1.01296765 / 0.98268828
=1.0308

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
=(-14.79 - -0.247 - 60.231) / 529.934
=-0.1411

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 -3.24 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 0.93671.07050.91391.07481.17871.1831.1430.91150.91840.9435
SGAI 1.15831.24841.12261.170.95990.9660.95611.00920.93450.9575
LVGI 0.96371.00690.9911.05811.10770.96031.04061.00231.03261.0252
TATA -0.042-0.1224-0.3038-0.0611-0.05170.0210.094-0.0008-0.0023-0.0987
M-score -2.87-3.10-3.97-2.71-2.63-2.40-2.05-2.44-2.61-3.14

BlueLinx Holdings Inc Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 0.81520.8931.03651.04550.97910.98220.94250.991.05050.9419
GMI 1.10540.95670.9250.91730.9431.0081.02180.99710.95890.9655
AQI 0.99780.90981.00230.89850.85260.75250.66390.63060.74771.0527
SGI 1.06920.98770.95520.91980.95110.97770.96570.96830.97270.9771
DEPI 0.89280.90170.87730.91840.95050.97321.01810.94350.88940.8344
SGAI 1.01670.98680.97680.93350.92240.93220.91960.95840.98641.0104
LVGI 1.05161.01441.02351.03261.02821.02971.03031.02521.02191.0308
TATA -0.0753-0.05730.0226-0.0023-0.0166-0.0381-0.0424-0.0987-0.0607-0.1411
M-score -2.92-2.93-2.44-2.61-2.71-2.79-2.88-3.14-2.88-3.24
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