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Boston Properties Inc (NYSE:BXP)
Beneish M-Score
-2.07 (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 -2.07 signals that the company is a manipulator.

BXP' s Beneish M-Score Range Over the Past 10 Years
Min: -646.44   Max: 5.84
Current: -2.07

-646.44
5.84

During the past 13 years, the highest Beneish M-Score of Boston Properties Inc was 5.84. The lowest was -646.44. And the median was -2.55.


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 * 1.4629+0.528 * 1.0018+0.404 * 0.8928+0.892 * 1.0512+0.115 * 0.9572
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9292+4.679 * -0.0119-0.327 * 0.9132
=-2.07

* 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 $66 Mil.
Revenue was 629.884 + 618.221 + 618.476 + 613.707 = $2,480 Mil.
Gross Profit was 401.963 + 395.262 + 389.55 + 395.091 = $1,582 Mil.
Total Current Assets was $2,301 Mil.
Total Assets was $18,980 Mil.
Property, Plant and Equipment(Net PPE) was $15,569 Mil.
Depreciation, Depletion and Amortization(DDA) was $638 Mil.
Selling, General & Admin. Expense(SGA) was $97 Mil.
Total Current Liabilities was $559 Mil.
Long-Term Debt was $9,730 Mil.
Net Income was 186.729 + 82.078 + 173.771 + 177.285 = $620 Mil.
Non Operating Income was 1.132 + 3.054 + 15.227 + -7.546 = $12 Mil.
Cash Flow from Operations was 165.802 + 241.63 + 201.446 + 225.876 = $835 Mil.
Accounts Receivable was $43 Mil.
Revenue was 618.803 + 589.794 + 574.694 + 576.199 = $2,359 Mil.
Gross Profit was 396.039 + 379.833 + 361.509 + 370.123 = $1,508 Mil.
Total Current Assets was $1,752 Mil.
Total Assets was $18,875 Mil.
Property, Plant and Equipment(Net PPE) was $15,886 Mil.
Depreciation, Depletion and Amortization(DDA) was $622 Mil.
Selling, General & Admin. Expense(SGA) was $99 Mil.
Total Current Liabilities was $548 Mil.
Long-Term Debt was $10,656 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)
=(66.446 / 2480.288) / (43.21 / 2359.49)
=0.02678963 / 0.01831328
=1.4629

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)
=(395.262 / 2359.49) / (401.963 / 2480.288)
=0.63891095 / 0.63777513
=1.0018

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 - (2300.622 + 15569.008) / 18980.263) / (1 - (1751.754 + 15886.276) / 18875.16)
=0.05851515 / 0.06554276
=0.8928

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
=2480.288 / 2359.49
=1.0512

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))
=(621.552 / (621.552 + 15886.276)) / (637.512 / (637.512 + 15569.008))
=0.03765196 / 0.03933676
=0.9572

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)
=(96.62 / 2480.288) / (98.921 / 2359.49)
=0.03895515 / 0.04192474
=0.9292

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)
=((9729.796 + 559.028) / 18980.263) / ((10655.75 + 548.262) / 18875.16)
=0.54208016 / 0.59358501
=0.9132

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
=(619.863 - 11.867 - 834.754) / 18980.263
=-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 -2.07 signals that the company is likely to 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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 10.97351.17891.32974.21830.17890.81250.73950.6981
GMI 0.99380.99981.03080.99990.98911.0131.021310.9991
AQI 1.38660.39512.11950.65711.09130.84721.07510.69210.9982
SGI 1.02511.04561.00411.021.01651.11631.07221.15611.1224
DEPI 1.00071.02240.96630.96891.09160.79951.07341.05980.8959
SGAI 1.04411.12561.03131.02211.03520.98281.00421.07980.7768
LVGI 0.79941.3850.9930.97591.05481.00670.98511.02150.9316
TATA 0.0357-0.0047-0.0305-0.0324-0.0123-0.0282-0.0258-0.0244-0.0128
M-score -2.08-2.88-1.99-2.450.46-3.34-2.65-2.83-2.66

Boston Properties Inc Quarterly Data

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
DSRI 0.14671.11120.74160.06880.64740.67120.69811.15551.00631.4629
GMI 1.00991.00030.9970.9970.99430.9980.99910.99761.00091.0018
AQI 0.81140.74940.69210.74070.95330.99440.99820.99060.93390.8928
SGI 1.05951.10681.15281.18331.2011.16231.12241.09331.06791.0512
DEPI 1.24871.13961.05981.00490.7980.86140.89590.93740.94860.9572
SGAI 1.20131.10441.17780.83680.77340.76620.77680.90920.92590.9292
LVGI 1.02351.03391.02150.98230.96220.9620.93160.94510.91540.9132
TATA -0.0246-0.0242-0.0244-0.0192-0.0208-0.0188-0.0128-0.0119-0.0147-0.0119
M-score -3.41-2.51-2.85-3.33-2.72-2.69-2.66-2.29-2.47-2.07
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