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Boston Properties Inc (NYSE:BXP)
Beneish M-Score
-2.48 (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 -2.48 suggests that the company is not a manipulator.

BXP' s 10-Year Beneish M-Score Range
Min: -3.39   Max: 5.84
Current: -2.48

-3.39
5.84

During the past 13 years, the highest Beneish M-Score of Boston Properties Inc was 5.84. The lowest was -3.39. And the median was -2.55.


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 * 1.0042+0.528 * 1.0009+0.404 * 0.9339+0.892 * 1.0702+0.115 * 0.9486
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9403+4.679 * -0.0147-0.327 * 0.9154
=-2.48

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

This Year (Jun15) TTM:Last Year (Jun14) TTM:
Accounts Receivable was $55 Mil.
Revenue was 618.221 + 618.476 + 613.707 + 618.803 = $2,469 Mil.
Gross Profit was 395.262 + 389.55 + 395.091 + 396.039 = $1,576 Mil.
Total Current Assets was $2,402 Mil.
Total Assets was $19,114 Mil.
Property, Plant and Equipment(Net PPE) was $15,612 Mil.
Depreciation, Depletion and Amortization(DDA) was $642 Mil.
Selling, General & Admin. Expense(SGA) was $99 Mil.
Total Current Liabilities was $523 Mil.
Long-Term Debt was $9,867 Mil.
Net Income was 82.078 + 173.771 + 177.285 + 130.371 = $564 Mil.
Non Operating Income was 3.054 + 15.227 + -7.546 + 4.122 = $15 Mil.
Cash Flow from Operations was 241.63 + 201.446 + 225.876 + 160.684 = $830 Mil.
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.



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)
=(55.183 / 2469.207) / (51.348 / 2307.275)
=0.02234847 / 0.02225482
=1.0042

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)
=(389.55 / 2307.275) / (395.262 / 2469.207)
=0.63883456 / 0.63823811
=1.0009

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 - (2402.242 + 15612.331) / 19113.959) / (1 - (1839.686 + 15894.949) / 18898.533)
=0.05751744 / 0.06158669
=0.9339

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
=2469.207 / 2307.275
=1.0702

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))
=(618.5 / (618.5 + 15894.949)) / (641.742 / (641.742 + 15612.331))
=0.03745432 / 0.03948192
=0.9486

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)
=(99.413 / 2469.207) / (98.793 / 2307.275)
=0.0402611 / 0.04281804
=0.9403

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)
=((9867.459 + 523.34) / 19113.959) / ((10738.609 + 484.524) / 18898.533)
=0.54362359 / 0.59386266
=0.9154

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
=(563.505 - 14.857 - 829.636) / 19113.959
=-0.0147

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 -2.48 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

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 0.97670.14511.10130.75010.06980.65930.68310.69991.15571.0042
GMI 1.01661.01541.00310.9960.99360.98820.99330.99650.99631.0009
AQI 0.95070.81140.74940.68450.74070.95330.99441.00920.99060.9339
SGI 1.06971.07161.11681.13971.16651.17931.14191.11951.09311.0702
DEPI 1.01971.2471.13721.05981.00520.79850.86220.89590.93740.9486
SGAI 1.06731.11771.10261.15540.84690.81780.78580.81950.94540.9403
LVGI 1.01641.02351.03391.00740.98230.96220.9620.94470.94510.9154
TATA -0.0307-0.0255-0.0251-0.0244-0.0192-0.0208-0.0188-0.0128-0.0119-0.0147
M-score -2.61-3.39-2.51-2.85-3.35-2.74-2.71-2.67-2.29-2.48
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