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Boston Properties Inc (NYSE:BXP)
Beneish M-Score
-2.12 (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 -2.12 signals that the company is a manipulator.

BXP' s Beneish M-Score Range Over the Past 10 Years
Min: -646.69   Max: 5.84
Current: -2.12

-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 * 1.4848+0.528 * 0.9919+0.404 * 0.9129+0.892 * 1.04+0.115 * 0.9754
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9328+4.679 * -0.0177-0.327 * 1.015
=-2.12

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $74 Mil.
Revenue was 665.985 + 624.24 + 629.884 + 618.221 = $2,538 Mil.
Gross Profit was 439.179 + 399.71 + 401.963 + 395.262 = $1,636 Mil.
Total Current Assets was $2,540 Mil.
Total Assets was $19,176 Mil.
Property, Plant and Equipment(Net PPE) was $15,569 Mil.
Depreciation, Depletion and Amortization(DDA) was $645 Mil.
Selling, General & Admin. Expense(SGA) was $98 Mil.
Total Current Liabilities was $587 Mil.
Long-Term Debt was $10,160 Mil.
Net Income was 184.365 + 140.55 + 186.729 + 82.078 = $594 Mil.
Non Operating Income was 2.05 + -19.336 + 1.132 + 3.054 = $-13 Mil.
Cash Flow from Operations was 348.98 + 190.533 + 165.802 + 241.63 = $947 Mil.
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.



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)
=(73.759 / 2538.33) / (47.768 / 2440.78)
=0.02905808 / 0.01957079
=1.4848

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)
=(1560.513 / 2440.78) / (1636.114 / 2538.33)
=0.63935013 / 0.64456316
=0.9919

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 - (2539.727 + 15569.424) / 19175.83) / (1 - (2434.992 + 15575.438) / 19179.071)
=0.05562622 / 0.06093314
=0.9129

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
=2538.33 / 2440.78
=1.04

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))
=(628.526 / (628.526 + 15575.438)) / (644.767 / (644.767 + 15569.424))
=0.03878841 / 0.0397656
=0.9754

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)
=(97.838 / 2538.33) / (100.853 / 2440.78)
=0.03854424 / 0.04131999
=0.9328

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)
=((10160.366 + 587.384) / 19175.83) / ((10066.696 + 523.512) / 19179.071)
=0.56048421 / 0.55217523
=1.015

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
=(593.722 - -13.1 - 946.945) / 19175.83
=-0.0177

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 -2.12 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 11.01471.17891.32624.20910.1760.8170.75110.69812.0212
GMI 0.99360.98461.03080.99850.99141.01961.02040.99350.99911.0038
AQI 1.38660.39512.11950.65711.09130.84721.07510.69210.99821.0489
SGI 1.02781.00321.00411.02271.01881.13461.06631.13821.12241.0391
DEPI 1.00071.02240.96630.96891.09160.79951.07341.05980.89590.9755
SGAI 1.04141.17321.03131.01941.03640.90110.94861.230.78850.9199
LVGI 0.79941.3850.9930.97591.05481.00670.98511.02150.91690.9499
TATA 0.0357-0.0047-0.0256-0.0353-0.0123-0.0282-0.0258-0.0244-0.0128-0.0118
M-score -2.08-2.89-1.97-2.460.45-3.31-2.65-2.87-2.66-1.51

Boston Properties Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 0.74160.06880.64740.67120.69811.15551.00631.46292.02121.4848
GMI 0.9970.9970.99430.9980.99910.99761.00091.00181.00380.9919
AQI 0.69210.74070.95330.99440.99820.99060.93390.89281.04890.9129
SGI 1.15281.18331.2011.16231.12241.09331.06791.05121.03911.04
DEPI 1.05981.00490.7980.86140.89590.93740.94860.95720.97550.9754
SGAI 1.12990.8080.74820.74180.77680.90920.92590.92920.91990.9328
LVGI 1.02150.98230.96220.9620.91690.94510.91540.91320.94991.015
TATA -0.0244-0.0192-0.0208-0.0188-0.0128-0.0119-0.0147-0.0119-0.0118-0.0177
M-score -2.84-3.33-2.71-2.69-2.66-2.29-2.47-2.07-1.51-2.12
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