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Boston Properties Inc (NYSE:BXP)
Beneish M-Score
-2.53 (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 -2.53 suggests that the company is not a manipulator.

BXP' s Beneish M-Score Range Over the Past 10 Years
Min: -646.69   Max: 5.84
Current: -2.53

-646.69
5.84

During the past 13 years, the highest Beneish M-Score of Boston Properties Inc was 5.84. The lowest was -646.69. And the median was -2.51.


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 * 1.1211+0.528 * 0.9965+0.404 * 0.8662+0.892 * 1.0237+0.115 * 0.9516
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0706+4.679 * -0.0223-0.327 * 1.0279
=-2.53

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

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $76 Mil.
Revenue was 625.228 + 623.546 + 665.985 + 624.24 = $2,539 Mil.
Gross Profit was 388.55 + 397.63 + 439.179 + 399.71 = $1,625 Mil.
Total Current Assets was $2,048 Mil.
Total Assets was $18,790 Mil.
Property, Plant and Equipment(Net PPE) was $15,789 Mil.
Depreciation, Depletion and Amortization(DDA) was $681 Mil.
Selling, General & Admin. Expense(SGA) was $106 Mil.
Total Current Liabilities was $1,148 Mil.
Long-Term Debt was $9,321 Mil.
Net Income was 79.342 + 99.186 + 184.365 + 140.55 = $503 Mil.
Non Operating Income was 1.929 + 2.712 + 2.05 + -19.336 = $-13 Mil.
Cash Flow from Operations was 159.634 + 235.171 + 348.98 + 190.533 = $934 Mil.
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.



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)
=(76.258 / 2538.999) / (66.446 / 2480.288)
=0.03003467 / 0.02678963
=1.1211

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)
=(1581.866 / 2480.288) / (1625.069 / 2538.999)
=0.63777513 / 0.64004318
=0.9965

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 - (2048.344 + 15789.203) / 18789.899) / (1 - (2300.622 + 15569.008) / 18980.263)
=0.05068425 / 0.05851515
=0.8662

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
=2538.999 / 2480.288
=1.0237

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))
=(637.512 / (637.512 + 15569.008)) / (680.831 / (680.831 + 15789.203))
=0.03933676 / 0.04133756
=0.9516

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)
=(105.893 / 2538.999) / (96.62 / 2480.288)
=0.04170659 / 0.03895515
=1.0706

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)
=((9321.474 + 1148.093) / 18789.899) / ((9729.796 + 559.028) / 18980.263)
=0.55719123 / 0.54208016
=1.0279

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
=(503.443 - -12.645 - 934.318) / 18789.899
=-0.0223

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 -2.53 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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 10.97351.17891.32974.21830.17890.81250.73950.69812.0212
GMI 0.99380.99981.03080.99990.98911.0131.021310.99911.0038
AQI 1.38660.39512.11950.65711.09130.84721.07510.69210.99820.3829
SGI 1.02511.04561.00411.021.01651.11631.07221.15611.12241.0391
DEPI 1.00071.02240.96630.96891.09160.79951.07341.05980.89590.9755
SGAI 1.04411.12561.03131.02211.03520.98281.00421.07980.77680.9199
LVGI 0.79941.3850.9930.97591.05481.00670.98511.02150.91690.966
TATA 0.0357-0.0047-0.0305-0.0324-0.0123-0.0282-0.0258-0.0244-0.0128-0.0118
M-score -2.08-2.88-1.99-2.450.46-3.34-2.65-2.83-2.66-1.79

Boston Properties Inc Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 0.64740.67120.69811.15551.00631.46292.02121.48481.49281.1211
GMI 0.99430.9980.99910.99761.00091.00181.00380.99190.99080.9965
AQI 0.95330.99440.99820.99060.93390.89280.38290.91290.36380.8662
SGI 1.2011.16231.12241.09331.06791.05121.03911.041.03021.0237
DEPI 0.7980.86140.89590.93740.94860.95720.97550.97541.02580.9516
SGAI 0.74820.74180.77680.90920.92590.92920.91990.93280.99281.0706
LVGI 0.96220.9620.91690.94510.91540.91320.9661.0151.0241.0279
TATA -0.0208-0.0188-0.0128-0.0119-0.0147-0.0119-0.0118-0.0177-0.0167-0.0223
M-score -2.71-2.69-2.66-2.29-2.47-2.07-1.79-2.12-2.34-2.53
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