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Boston Properties Inc (NYSE:BXP)
Beneish M-Score
-2.34 (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 -2.34 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: -2.34

-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 * 1.4928+0.528 * 0.9908+0.404 * 0.3638+0.892 * 1.0302+0.115 * 1.0258
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9928+4.679 * -0.0167-0.327 * 1.024
=-2.34

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $85 Mil.
Revenue was 623.546 + 665.985 + 624.24 + 629.884 = $2,544 Mil.
Gross Profit was 397.63 + 439.179 + 399.71 + 401.963 = $1,638 Mil.
Total Current Assets was $2,827 Mil.
Total Assets was $18,964 Mil.
Property, Plant and Equipment(Net PPE) was $15,740 Mil.
Depreciation, Depletion and Amortization(DDA) was $630 Mil.
Selling, General & Admin. Expense(SGA) was $102 Mil.
Total Current Liabilities was $623 Mil.
Long-Term Debt was $9,934 Mil.
Net Income was 99.186 + 184.365 + 140.55 + 186.729 = $611 Mil.
Non Operating Income was 2.712 + 2.05 + -19.336 + 1.132 = $-13 Mil.
Cash Flow from Operations was 235.171 + 348.98 + 190.533 + 165.802 = $940 Mil.
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.



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)
=(84.861 / 2543.655) / (55.183 / 2469.207)
=0.03336184 / 0.02234847
=1.4928

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)
=(1575.942 / 2469.207) / (1638.482 / 2543.655)
=0.63823811 / 0.64414474
=0.9908

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 - (2826.973 + 15740.152) / 18963.965) / (1 - (2402.242 + 15612.331) / 19113.959)
=0.020926 / 0.05751744
=0.3638

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
=2543.655 / 2469.207
=1.0302

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))
=(641.742 / (641.742 + 15612.331)) / (630.098 / (630.098 + 15740.152))
=0.03948192 / 0.03849043
=1.0258

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)
=(101.677 / 2543.655) / (99.413 / 2469.207)
=0.0399728 / 0.0402611
=0.9928

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)
=((9934.084 + 622.71) / 18963.965) / ((9867.459 + 523.34) / 19113.959)
=0.55667652 / 0.54362359
=1.024

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
=(610.83 - -13.442 - 940.486) / 18963.965
=-0.0167

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 -2.34 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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 10.97351.17891.32621.36670.5420.8170.75110.69812.0212
GMI 0.99380.99981.03080.99850.99141.01961.02040.99350.99911.0038
AQI 1.38660.39512.11950.8790.81590.84721.07510.68451.00921.0489
SGI 1.02511.04561.00411.02271.01881.13461.06631.13821.12241.0391
DEPI 1.00071.02240.96630.96891.09160.79951.07341.05980.89590.9755
SGAI 1.04411.12561.03131.01941.03640.90110.94861.230.78850.9199
LVGI 0.79941.3850.9930.97591.0581.00360.98511.00740.94470.9348
TATA 0.0357-0.0047-0.0305-0.0353-0.0123-0.0282-0.0258-0.0244-0.0128-0.0118
M-score -2.08-2.88-1.99-2.37-2.28-2.97-2.65-2.87-2.66-1.51

Boston Properties Inc Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 0.06980.65930.68310.69991.15571.00421.45822.02121.48481.4928
GMI 0.99360.98820.99330.99650.99631.00091.00191.00380.99190.9908
AQI 0.74070.95330.99441.00920.99060.93390.89281.04890.91290.3638
SGI 1.16651.17931.14191.11951.09311.07021.05451.03911.041.0302
DEPI 1.00520.79850.86220.89590.93740.94860.95720.97550.97541.0258
SGAI 0.84690.81780.78580.81950.94540.94030.94280.91990.93280.9928
LVGI 0.98230.96220.9620.94470.94510.91540.91320.93481.0151.024
TATA -0.0192-0.0208-0.0188-0.0128-0.0119-0.0147-0.0119-0.0118-0.0177-0.0167
M-score -3.35-2.74-2.71-2.67-2.29-2.48-2.07-1.51-2.12-2.34
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