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Boston Properties Inc (NYSE:BXP)
Beneish M-Score
-2.67 (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 -2.67 suggests that the company is not a manipulator.

BXP' s 10-Year Beneish M-Score Range
Min: -2.97   Max: -1.99
Current: -2.67

-2.97
-1.99

During the past 13 years, the highest Beneish M-Score of Boston Properties Inc was -1.99. The lowest was -2.97. And the median was -2.50.


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 * 0.6999+0.528 * 0.9965+0.404 * 1.0092+0.892 * 1.1195+0.115 * 0.8959
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8195+4.679 * -0.0128-0.327 * 0.9447
=-2.67

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
Accounts Receivable was $47 Mil.
Revenue was 613.707 + 618.803 + 589.794 + 574.694 = $2,397 Mil.
Gross Profit was 395.091 + 396.039 + 379.833 + 361.509 = $1,532 Mil.
Total Current Assets was $3,008 Mil.
Total Assets was $19,887 Mil.
Property, Plant and Equipment(Net PPE) was $15,689 Mil.
Depreciation, Depletion and Amortization(DDA) was $629 Mil.
Selling, General & Admin. Expense(SGA) was $102 Mil.
Total Current Liabilities was $1,289 Mil.
Long-Term Debt was $10,087 Mil.
Net Income was 177.285 + 130.371 + 79.145 + 56.623 = $443 Mil.
Non Operating Income was -7.546 + 4.122 + 3.496 + 3.102 = $3 Mil.
Cash Flow from Operations was 225.876 + 160.684 + 184.784 + 124.209 = $696 Mil.
Accounts Receivable was $59 Mil.
Revenue was 568.705 + 574.082 + 515.32 + 483.014 = $2,141 Mil.
Gross Profit was 365.473 + 367.152 + 328.148 + 303.35 = $1,364 Mil.
Total Current Assets was $3,150 Mil.
Total Assets was $20,162 Mil.
Property, Plant and Equipment(Net PPE) was $15,817 Mil.
Depreciation, Depletion and Amortization(DDA) was $565 Mil.
Selling, General & Admin. Expense(SGA) was $111 Mil.
Total Current Liabilities was $867 Mil.
Long-Term Debt was $11,342 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)
=(46.595 / 2396.998) / (59.464 / 2141.121)
=0.0194389 / 0.02777237
=0.6999

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)
=(396.039 / 2141.121) / (395.091 / 2396.998)
=0.63710692 / 0.63932969
=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 - (3008.453 + 15688.744) / 19886.767) / (1 - (3150.046 + 15817.194) / 20162.251)
=0.05981716 / 0.05926972
=1.0092

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
=2396.998 / 2141.121
=1.1195

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))
=(565.397 / (565.397 + 15817.194)) / (628.573 / (628.573 + 15688.744))
=0.03451206 / 0.03852184
=0.8959

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)
=(102.077 / 2396.998) / (111.262 / 2141.121)
=0.04258535 / 0.05196437
=0.8195

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)
=((10086.984 + 1289.267) / 19886.767) / ((11341.508 + 867.235) / 20162.251)
=0.5720513 / 0.6055248
=0.9447

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
=(443.424 - 3.174 - 695.553) / 19886.767
=-0.0128

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 -2.67 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 110.97351.17891.32621.36670.5420.8170.75110.6981
GMI 00.99380.99981.03080.99850.99141.01961.02040.99350.9991
AQI 1.13031.38660.39512.11950.8790.81590.84721.07510.68451.0092
SGI 1.03651.02511.04561.00411.02271.01881.13461.06631.13821.1224
DEPI 0.91731.00071.02240.96630.96891.09160.79951.07341.05980.8959
SGAI 0.99781.04411.12561.03131.01941.03640.90110.94861.230.7885
LVGI 0.96860.79941.3850.9930.97591.0581.00360.98511.00740.9447
TATA -0.00380.0357-0.0047-0.0305-0.0353-0.0123-0.0282-0.0258-0.0244-0.0128
M-score -2.94-2.08-2.88-1.99-2.37-2.28-2.97-2.65-2.87-2.66

Boston Properties Inc Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 0.86970.81590.15950.14511.10130.75010.42740.65930.68310.6999
GMI 1.02271.02051.01661.01541.00310.9960.99360.98820.99330.9965
AQI 0.67421.07510.95070.81140.74940.68450.74070.95330.99441.0092
SGI 1.0891.06771.06971.07161.11681.13971.16651.17931.14191.1195
DEPI 1.03521.07341.01971.2471.13721.05981.00520.79850.86220.8959
SGAI 1.01910.97081.06731.11771.10261.15540.84690.81780.78580.8195
LVGI 1.00570.98511.01641.02351.03391.00740.98230.96220.9620.9447
TATA -0.0251-0.0258-0.0307-0.0255-0.0251-0.0244-0.0192-0.0208-0.0188-0.0128
M-score -2.76-2.65-3.36-3.39-2.51-2.85-3.02-2.74-2.71-2.67
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