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Boston Properties Inc (NYSE:BXP)
Beneish M-Score
-2.72 (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 -2.72 suggests that the company is not a manipulator.

BXP' s 10-Year Beneish M-Score Range
Min: -3.49   Max: 5.84
Current: -2.72

-3.49
5.84

During the past 13 years, the highest Beneish M-Score of Boston Properties Inc was 5.84. The lowest was -3.49. And the median was -2.53.


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 * 0.6488+0.528 * 0.9943+0.404 * 0.9533+0.892 * 1.1984+0.115 * 0.798
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.7616+4.679 * -0.0208-0.327 * 0.9622
=-2.72

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was $51 Mil.
Revenue was 589.794 + 574.694 + 568.705 + 574.082 = $2,307 Mil.
Gross Profit was 379.833 + 361.509 + 365.473 + 367.152 = $1,474 Mil.
Total Current Assets was $1,840 Mil.
Total Assets was $18,899 Mil.
Property, Plant and Equipment(Net PPE) was $15,895 Mil.
Depreciation, Depletion and Amortization(DDA) was $619 Mil.
Selling, General & Admin. Expense(SGA) was $99 Mil.
Total Current Liabilities was $485 Mil.
Long-Term Debt was $10,739 Mil.
Net Income was 79.145 + 56.623 + 91.539 + 155.324 = $383 Mil.
Non Operating Income was 3.496 + 3.102 + 3.873 + 13.852 = $24 Mil.
Cash Flow from Operations was 184.784 + 124.209 + 227.505 + 215.583 = $752 Mil.
Accounts Receivable was $66 Mil.
Revenue was 510.033 + 477.826 + 470.738 + 466.68 = $1,925 Mil.
Gross Profit was 326.68 + 301.72 + 300.38 + 294.101 = $1,223 Mil.
Total Current Assets was $2,369 Mil.
Total Assets was $19,463 Mil.
Property, Plant and Equipment(Net PPE) was $15,836 Mil.
Depreciation, Depletion and Amortization(DDA) was $488 Mil.
Selling, General & Admin. Expense(SGA) was $108 Mil.
Total Current Liabilities was $467 Mil.
Long-Term Debt was $11,546 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)
=(51.348 / 2307.275) / (66.039 / 1925.277)
=0.02225482 / 0.03430104
=0.6488

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)
=(361.509 / 1925.277) / (379.833 / 2307.275)
=0.63517146 / 0.63883456
=0.9943

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 - (1839.686 + 15894.949) / 18898.533) / (1 - (2369.479 + 15835.914) / 19462.784)
=0.06158669 / 0.06460489
=0.9533

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
=2307.275 / 1925.277
=1.1984

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))
=(487.899 / (487.899 + 15835.914)) / (618.5 / (618.5 + 15894.949))
=0.02988879 / 0.03745432
=0.798

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)
=(98.793 / 2307.275) / (108.236 / 1925.277)
=0.04281804 / 0.0562184
=0.7616

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)
=((10738.609 + 484.524) / 18898.533) / ((11545.545 + 467.099) / 19462.784)
=0.59386266 / 0.61721098
=0.9622

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
=(382.631 - 24.323 - 752.081) / 18898.533
=-0.0208

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 -2.72 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 1.29422.0121.05391.01475.8091.04851.08040.99690.96230.1126
GMI 0.98971.00280.99360.98461.03080.99850.99141.01881.01451
AQI 1.51711.13031.38661.39670.60040.87790.81590.84721.07510.6845
SGI 1.06941.02651.02781.00321.00411.02271.01881.12931.05471.1561
DEPI 0.85330.91731.00071.02240.96560.96961.09160.79951.07341.0598
SGAI 1.10581.00751.04141.17321.03131.01941.03640.8851.07341.1068
LVGI 0.94480.98040.78980.8761.61460.94891.05481.00670.98511.0074
TATA -0.0161-0.00380.03570.0621-0.0256-0.0353-0.0123-0.0282-0.0258-0.0244
M-score -2.04-1.49-2.02-2.011.47-2.62-2.54-2.56-2.55-3.41

Boston Properties Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 0.99290.95082.27890.96060.98560.14670.04950.11320.06890.6488
GMI 1.02361.02091.02331.01751.01261.00991.00040.9970.9970.9943
AQI 0.92080.84130.67421.07510.95070.81140.74940.68450.74070.9533
SGI 1.11941.11491.08321.05661.061.05951.10821.15021.18071.1984
DEPI 0.89250.96251.0341.07341.02031.24871.13961.05981.00490.798
SGAI 0.99130.95371.06431.00691.12321.20131.10291.16290.82420.7616
LVGI 0.97781.01361.00570.98511.01641.02351.03391.00740.98230.9622
TATA -0.0318-0.0268-0.0262-0.0258-0.0297-0.0246-0.0242-0.0244-0.0192-0.0208
M-score -2.55-2.60-1.48-2.53-2.62-3.41-3.48-3.43-3.34-2.72
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