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GuruFocus has detected 6 Warning Signs with Boston Properties Inc $BXP.
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Boston Properties Inc (NYSE:BXP)
Beneish M-Score
-2.69 (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 -2.69 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: -2.69

-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 * 0.9982+0.528 * 1.0221+0.404 * 0.8955+0.892 * 0.9916+0.115 * 0.9615
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1303+4.679 * -0.0305-0.327 * 0.9969
=-2.69

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Mar17) TTM:Last Year (Mar16) TTM:
Accounts Receivable was $73 Mil.
Revenue was 632.228 + 636.061 + 625.228 + 623.546 = $2,517 Mil.
Gross Profit was 396.85 + 404.227 + 388.55 + 397.63 = $1,587 Mil.
Total Current Assets was $1,932 Mil.
Total Assets was $18,967 Mil.
Property, Plant and Equipment(Net PPE) was $16,090 Mil.
Depreciation, Depletion and Amortization(DDA) was $694 Mil.
Selling, General & Admin. Expense(SGA) was $110 Mil.
Total Current Liabilities was $1,198 Mil.
Long-Term Debt was $9,400 Mil.
Net Income was 99.708 + 149.875 + 79.342 + 99.186 = $428 Mil.
Non Operating Income was 4.126 + 62.515 + 1.929 + 2.712 = $71 Mil.
Cash Flow from Operations was 246.53 + 293.089 + 159.634 + 235.171 = $934 Mil.
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.



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)
=(73.012 / 2517.063) / (73.759 / 2538.33)
=0.02900682 / 0.02905808
=0.9982

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)
=(1636.114 / 2538.33) / (1587.257 / 2517.063)
=0.64456316 / 0.63059884
=1.0221

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 - (1931.813 + 16089.977) / 18966.627) / (1 - (2539.727 + 15569.424) / 19175.83)
=0.04981576 / 0.05562622
=0.8955

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
=2517.063 / 2538.33
=0.9916

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))
=(644.767 / (644.767 + 15569.424)) / (694.16 / (694.16 + 16089.977))
=0.0397656 / 0.0413581
=0.9615

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)
=(109.658 / 2517.063) / (97.838 / 2538.33)
=0.04356585 / 0.03854424
=1.1303

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)
=((9400.111 + 1197.589) / 18966.627) / ((10160.366 + 587.384) / 19175.83)
=0.55875512 / 0.56048421
=0.9969

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
=(428.111 - 71.282 - 934.424) / 18966.627
=-0.0305

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 -2.69 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 local exchange's currency.

Boston Properties Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
DSRI 0.97351.17891.32974.21830.17870.81110.74160.69812.02120.9234
GMI 0.99981.03080.99990.98911.01311.02440.9970.99911.00380.997
AQI 0.39512.11950.65711.09130.84721.07510.69210.99820.38292.0956
SGI 1.04561.00411.021.01651.11751.07411.15281.12241.03911.0241
DEPI 1.02240.96630.96891.09160.79951.07341.05980.89590.97550.9451
SGAI 1.12561.03131.02211.03520.99780.94521.12990.77680.91991.0769
LVGI 1.3850.9930.97591.05481.00670.98511.02150.91690.9661.0211
TATA 0.0507-0.0309-0.0324-0.0123-0.0282-0.0258-0.0244-0.0128-0.0118-0.0315
M-score -2.62-1.99-2.450.46-3.34-2.64-2.84-2.66-1.79-2.26

Boston Properties Inc Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
DSRI 0.69811.15551.00631.46292.02121.48481.49281.12110.92340.9982
GMI 0.99910.99761.00091.00181.00380.99190.99080.99650.9971.0221
AQI 0.99820.99060.93390.89280.38290.91290.36380.86622.09560.8955
SGI 1.12241.09331.06791.05121.03911.041.03021.02371.02410.9916
DEPI 0.89590.93740.94860.95720.97550.97541.02580.95160.94510.9615
SGAI 0.77680.90920.92590.92920.91990.93280.99281.07061.07691.1303
LVGI 0.91690.94510.91540.91320.9661.0151.0241.02791.02110.9969
TATA -0.0128-0.0119-0.0147-0.0119-0.0118-0.0177-0.0167-0.0223-0.0315-0.0305
M-score -2.66-2.29-2.47-2.07-1.79-2.12-2.34-2.53-2.26-2.69
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