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GuruFocus has detected 8 Warning Signs with Boston Properties Inc $BXP.
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Boston Properties Inc (NYSE:BXP)
Beneish M-Score
-2.26 (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 -2.26 suggests that the company is not a manipulator.

BXP' s Beneish M-Score Range Over the Past 10 Years
Min: -3.34   Max: 0.46
Current: -2.26

-3.34
0.46

During the past 13 years, the highest Beneish M-Score of Boston Properties Inc was 0.46. The lowest was -3.34. And the median was -2.42.


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 * 0.9234+0.528 * 0.997+0.404 * 2.0956+0.892 * 1.0241+0.115 * 0.9451
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0769+4.679 * -0.0315-0.327 * 1.0211
=-2.26

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Dec16) TTM:Last Year (Dec15) TTM:
Accounts Receivable was $93 Mil.
Revenue was 636.061 + 625.228 + 623.546 + 665.985 = $2,551 Mil.
Gross Profit was 404.227 + 388.55 + 397.63 + 439.179 = $1,630 Mil.
Total Current Assets was $2,022 Mil.
Total Assets was $18,852 Mil.
Property, Plant and Equipment(Net PPE) was $15,925 Mil.
Depreciation, Depletion and Amortization(DDA) was $694 Mil.
Selling, General & Admin. Expense(SGA) was $108 Mil.
Total Current Liabilities was $1,160 Mil.
Long-Term Debt was $9,309 Mil.
Net Income was 149.875 + 79.342 + 99.186 + 184.365 = $513 Mil.
Non Operating Income was 62.515 + 1.929 + 2.712 + 2.05 = $69 Mil.
Cash Flow from Operations was 293.089 + 159.634 + 235.171 + 348.98 = $1,037 Mil.
Accounts Receivable was $98 Mil.
Revenue was 624.24 + 629.884 + 618.221 + 618.476 = $2,491 Mil.
Gross Profit was 399.71 + 401.963 + 395.262 + 389.55 = $1,586 Mil.
Total Current Assets was $2,376 Mil.
Total Assets was $18,351 Mil.
Property, Plant and Equipment(Net PPE) was $15,556 Mil.
Depreciation, Depletion and Amortization(DDA) was $640 Mil.
Selling, General & Admin. Expense(SGA) was $98 Mil.
Total Current Liabilities was $1,281 Mil.
Long-Term Debt was $8,700 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)
=(92.548 / 2550.82) / (97.865 / 2490.821)
=0.03628167 / 0.03929026
=0.9234

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)
=(1586.485 / 2490.821) / (1629.586 / 2550.82)
=0.63693256 / 0.6388479
=0.997

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 - (2021.751 + 15925.028) / 18851.643) / (1 - (2375.503 + 15555.641) / 18351.486)
=0.04799921 / 0.02290507
=2.0956

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
=2550.82 / 2490.821
=1.0241

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))
=(639.542 / (639.542 + 15555.641)) / (694.403 / (694.403 + 15925.028))
=0.03948964 / 0.0417826
=0.9451

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)
=(107.616 / 2550.82) / (97.578 / 2490.821)
=0.04218879 / 0.03917504
=1.0769

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)
=((9309.04 + 1159.858) / 18851.643) / ((8700.061 + 1280.897) / 18351.486)
=0.5553308 / 0.54387737
=1.0211

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
=(512.768 - 69.206 - 1036.874) / 18851.643
=-0.0315

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 -2.26 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 local exchange's currency.

Boston Properties Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
DSRI 0.97351.17891.32974.21830.17890.81250.73950.69812.02120.9234
GMI 0.99981.03080.99990.98911.0131.021310.99911.00380.997
AQI 0.39512.11950.65711.09130.84721.07510.69210.99820.38292.0956
SGI 1.04561.00411.021.01651.11631.07221.15611.12241.03911.0241
DEPI 1.02240.96630.96891.09160.79951.07341.05980.89590.97550.9451
SGAI 1.12561.03131.02211.03520.98281.00421.07980.77680.91991.0769
LVGI 1.3850.9930.97591.05481.00670.98511.02150.91690.9661.0211
TATA -0.0047-0.0305-0.0324-0.0123-0.0282-0.0258-0.0244-0.0128-0.0118-0.0315
M-score -2.88-1.99-2.450.46-3.34-2.65-2.83-2.66-1.79-2.26

Boston Properties Inc Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
DSRI 0.67120.69811.15551.00631.46292.02121.48481.49281.12110.9234
GMI 0.9980.99910.99761.00091.00181.00380.99190.99080.99650.997
AQI 0.99440.99820.99060.93390.89280.38290.91290.36380.86622.0956
SGI 1.16231.12241.09331.06791.05121.03911.041.03021.02371.0241
DEPI 0.86140.89590.93740.94860.95720.97550.97541.02580.95160.9451
SGAI 0.74180.77680.90920.92590.92920.91990.93280.99281.07061.0769
LVGI 0.9620.91690.94510.91540.91320.9661.0151.0241.02791.0211
TATA -0.0188-0.0128-0.0119-0.0147-0.0119-0.0118-0.0177-0.0167-0.0223-0.0315
M-score -2.69-2.66-2.29-2.47-2.07-1.79-2.12-2.34-2.53-2.26
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