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Boise Inc (NYSE:BZ)
Beneish M-Score
0.00 (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.

Boise Inc has a M-score of -3.11 suggests that the company is not a manipulator.

BZ' s 10-Year Beneish M-Score Range
Min: 0   Max: 0
Current: 0

During the past 6 years, the highest Beneish M-Score of Boise Inc was 0.00. The lowest was 0.00. And the median was 0.00.


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 Boise 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 * 1.0303+0.528 * 1.0884+0.404 * 0.5563+0.892 * 0.9946+0.115 * 1.0031
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1915+4.679 * -0.1036-0.327 * 1.0124
=-3.11

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

This Year (Jun13) TTM:Last Year (Jun12) TTM:
Accounts Receivable was $254 Mil.
Revenue was 621.664 + 607.018 + 627.492 + 645.185 = $2,501 Mil.
Gross Profit was 120.656 + 104.603 + 130.844 + 137.071 = $493 Mil.
Total Current Assets was $638 Mil.
Total Assets was $2,209 Mil.
Property, Plant and Equipment(Net PPE) was $1,380 Mil.
Depreciation, Depletion and Amortization(DDA) was $170 Mil.
Selling, General & Admin. Expense(SGA) was $229 Mil.
Total Current Liabilities was $319 Mil.
Long-Term Debt was $760 Mil.
Net Income was -2.208 + -1.225 + 13.547 + 3.603 = $14 Mil.
Non Operating Income was -0.415 + -0.341 + -0.376 + 0.296 = $-1 Mil.
Cash Flow from Operations was 41.733 + 39.863 + 69.756 + 92.147 = $243 Mil.
Accounts Receivable was $248 Mil.
Revenue was 637.84 + 644.846 + 600.441 + 631.742 = $2,515 Mil.
Gross Profit was 126.031 + 137.601 + 132.972 + 143.071 = $540 Mil.
Total Current Assets was $656 Mil.
Total Assets was $2,252 Mil.
Property, Plant and Equipment(Net PPE) was $1,246 Mil.
Depreciation, Depletion and Amortization(DDA) was $154 Mil.
Selling, General & Admin. Expense(SGA) was $193 Mil.
Total Current Liabilities was $307 Mil.
Long-Term Debt was $780 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)
=(254.348 / 2501.359) / (248.19 / 2514.869)
=0.10168392 / 0.09868904
=1.0303

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)
=(104.603 / 2514.869) / (120.656 / 2501.359)
=0.21459368 / 0.19716242
=1.0884

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 - (638.209 + 1379.794) / 2209.144) / (1 - (656.193 + 1245.962) / 2252.472)
=0.08652265 / 0.15552557
=0.5563

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
=2501.359 / 2514.869
=0.9946

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))
=(153.717 / (153.717 + 1245.962)) / (169.643 / (169.643 + 1379.794))
=0.10982304 / 0.10948687
=1.0031

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)
=(229.11 / 2501.359) / (193.319 / 2514.869)
=0.09159421 / 0.07687041
=1.1915

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)
=((760 + 319.275) / 2209.144) / ((780 + 306.953) / 2252.472)
=0.48854896 / 0.48256005
=1.0124

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
=(13.717 - -0.836 - 243.499) / 2209.144
=-0.1036

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.

Boise Inc has a M-score of -3.11 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.

Boise Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12
DSRI 1.07020.9896
GMI 0.98781.0099
AQI 4.480.9775
SGI 1.14821.0629
DEPI 0.95320.9521
SGAI 1.32751.2813
LVGI 0.89551.0037
TATA -0.0756-0.0829
M-score -1.27-2.88

Boise Inc Quarterly Data

Mar11Jun11Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13
DSRI 1.10430.99870.94391.07020.93520.93991.01360.98961.01591.0303
GMI 0.78760.80060.88960.98781.02781.01671.01291.00991.07381.0884
AQI 2.94443.05383.00044.481.35751.35621.41520.97750.95710.5563
SGI 1.09961.11711.131.14821.14381.11771.08621.06291.01510.9946
DEPI 1.06341.00670.97820.95320.92070.95290.95160.95210.93731.0031
SGAI 0.99831.12641.25931.32751.3931.28561.19941.28131.19311.1915
LVGI 0.9460.82330.8680.89550.91691.04111.01591.00370.99891.0124
TATA -0.0912-0.071-0.075-0.0756-0.0623-0.0646-0.0803-0.0829-0.0963-0.1036
M-score -2.02-1.95-2.02-1.27-2.59-2.65-2.64-2.88-2.92-3.11
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