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Boston Properties Inc (NYSE:BXP)
Beneish M-Score
-2.29 (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.

Boston Properties Inc has a M-score of -2.29 suggests that the company is not a manipulator.

BXP' s 10-Year Beneish M-Score Range
Min: -3.41   Max: 5.84
Current: -2.29

-3.41
5.84

During the past 13 years, the highest Beneish M-Score of Boston Properties Inc was 5.84. The lowest was -3.41. And the median was -2.57.


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 Boston Properties 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 * 1.1555+0.528 * 0.9976+0.404 * 0.9906+0.892 * 1.0933+0.115 * 0.9374
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9092+4.679 * -0.0119-0.327 * 0.9451
=-2.29

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
Accounts Receivable was $48 Mil.
Revenue was 618.476 + 613.707 + 618.803 + 589.794 = $2,441 Mil.
Gross Profit was 389.55 + 395.091 + 396.039 + 379.833 = $1,561 Mil.
Total Current Assets was $2,435 Mil.
Total Assets was $19,179 Mil.
Property, Plant and Equipment(Net PPE) was $15,575 Mil.
Depreciation, Depletion and Amortization(DDA) was $629 Mil.
Selling, General & Admin. Expense(SGA) was $101 Mil.
Total Current Liabilities was $524 Mil.
Long-Term Debt was $10,067 Mil.
Net Income was 173.771 + 177.285 + 130.371 + 79.145 = $561 Mil.
Non Operating Income was 15.227 + -7.546 + 4.122 + 3.496 = $15 Mil.
Cash Flow from Operations was 201.446 + 225.876 + 160.684 + 184.784 = $773 Mil.
Accounts Receivable was $38 Mil.
Revenue was 574.694 + 576.199 + 571.481 + 510.033 = $2,232 Mil.
Gross Profit was 361.509 + 370.123 + 365.613 + 326.68 = $1,424 Mil.
Total Current Assets was $1,951 Mil.
Total Assets was $18,980 Mil.
Property, Plant and Equipment(Net PPE) was $15,861 Mil.
Depreciation, Depletion and Amortization(DDA) was $598 Mil.
Selling, General & Admin. Expense(SGA) was $101 Mil.
Total Current Liabilities was $511 Mil.
Long-Term Debt was $10,577 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)
=(47.768 / 2440.78) / (37.812 / 2232.407)
=0.01957079 / 0.01693777
=1.1555

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)
=(395.091 / 2232.407) / (389.55 / 2440.78)
=0.63784292 / 0.63935013
=0.9976

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 - (2434.992 + 15575.438) / 19179.071) / (1 - (1951.381 + 15860.776) / 18979.568)
=0.06093314 / 0.06150883
=0.9906

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
=2440.78 / 2232.407
=1.0933

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))
=(598.476 / (598.476 + 15860.776)) / (628.526 / (628.526 + 15575.438))
=0.03636107 / 0.03878841
=0.9374

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)
=(100.853 / 2440.78) / (101.456 / 2232.407)
=0.04131999 / 0.04544691
=0.9092

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)
=((10066.696 + 523.512) / 19179.071) / ((10577.135 + 511.478) / 18979.568)
=0.55217523 / 0.58423948
=0.9451

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
=(560.572 - 15.299 - 772.79) / 19179.071
=-0.0119

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.

Boston Properties Inc has a M-score of -2.29 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.

Boston Properties Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 110.97351.17891.32974.19790.17680.8260.73950.6981
GMI 00.99380.99981.03080.99990.991.01881.014510.9991
AQI 1.13031.38660.39512.11950.65711.09130.84721.07510.69210.9982
SGI 1.03651.02511.04561.00411.021.02151.12931.05471.15611.1224
DEPI 0.91731.00071.02240.96630.96891.09160.79951.07341.05980.8959
SGAI 0.99781.04411.12561.03131.02211.03360.8851.07341.12360.7768
LVGI 0.96860.79941.3850.9930.97591.05481.00670.98511.02150.9316
TATA -0.00380.0357-0.0047-0.0305-0.0324-0.0123-0.0282-0.0258-0.0244-0.0128
M-score -2.94-2.08-2.88-1.99-2.450.44-3.31-2.67-2.84-2.66

Boston Properties Inc Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 0.82450.98560.14671.11120.74160.06880.64740.67120.69811.1555
GMI 1.01751.01261.00991.00030.9970.9970.99430.9980.99910.9976
AQI 1.07510.95070.81140.74940.69210.74070.95330.99440.99820.9906
SGI 1.05661.061.05951.10681.15281.18331.2011.16231.12241.0933
DEPI 1.07341.02031.24871.13961.05981.00490.7980.86140.89590.9374
SGAI 1.00691.12321.20131.10441.17780.83680.77340.76620.77680.9092
LVGI 0.98511.01641.02351.03391.02150.98230.96220.9620.93160.9451
TATA -0.0258-0.0297-0.0246-0.0242-0.0244-0.0192-0.0208-0.0188-0.0128-0.0119
M-score -2.66-2.62-3.41-2.51-2.85-3.33-2.72-2.69-2.66-2.29
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