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Brookfield Infrastructure Partners LP (NYSE:BIP)
Beneish M-Score
-2.43 (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.

Brookfield Infrastructure Partners LP has a M-score of -2.45 suggests that the company is not a manipulator.

BIP' s Beneish M-Score Range Over the Past 10 Years
Min: -2.84   Max: 15.51
Current: -2.43

-2.84
15.51

During the past 9 years, the highest Beneish M-Score of Brookfield Infrastructure Partners LP was 15.51. The lowest was -2.84. And the median was -2.37.


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 Brookfield Infrastructure Partners LP 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 * 1.1889+0.528 * 0.9898+0.404 * 1.0114+0.892 * 0.9649+0.115 * 1.0402
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1638+4.679 * -0.021-0.327 * 0.9805
=-2.45

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $343 Mil.
Revenue was 454 + 455 + 468 + 466 = $1,843 Mil.
Gross Profit was 252 + 256 + 269 + 269 = $1,046 Mil.
Total Current Assets was $2,735 Mil.
Total Assets was $18,756 Mil.
Property, Plant and Equipment(Net PPE) was $7,850 Mil.
Depreciation, Depletion and Amortization(DDA) was $380 Mil.
Selling, General & Admin. Expense(SGA) was $137 Mil.
Total Current Liabilities was $1,348 Mil.
Long-Term Debt was $7,499 Mil.
Net Income was 61 + 29 + 92 + 18 = $200 Mil.
Non Operating Income was 67 + -40 + 142 + -11 = $158 Mil.
Cash Flow from Operations was 162 + 92 + 181 + 0 = $435 Mil.
Accounts Receivable was $299 Mil.
Revenue was 466 + 465 + 491 + 488 = $1,910 Mil.
Gross Profit was 263 + 262 + 275 + 273 = $1,073 Mil.
Total Current Assets was $1,660 Mil.
Total Assets was $16,286 Mil.
Property, Plant and Equipment(Net PPE) was $7,611 Mil.
Depreciation, Depletion and Amortization(DDA) was $384 Mil.
Selling, General & Admin. Expense(SGA) was $122 Mil.
Total Current Liabilities was $870 Mil.
Long-Term Debt was $6,965 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)
=(343 / 1843) / (299 / 1910)
=0.1861096 / 0.1565445
=1.1889

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)
=(1073 / 1910) / (1046 / 1843)
=0.5617801 / 0.5675529
=0.9898

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 - (2735 + 7850) / 18756) / (1 - (1660 + 7611) / 16286)
=0.43564726 / 0.43073806
=1.0114

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
=1843 / 1910
=0.9649

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))
=(384 / (384 + 7611)) / (380 / (380 + 7850))
=0.04803002 / 0.04617254
=1.0402

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)
=(137 / 1843) / (122 / 1910)
=0.07433532 / 0.06387435
=1.1638

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)
=((7499 + 1348) / 18756) / ((6965 + 870) / 16286)
=0.47168906 / 0.48108805
=0.9805

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
=(200 - 158 - 435) / 18756
=-0.021

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.

Brookfield Infrastructure Partners LP has a M-score of -2.45 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.

Brookfield Infrastructure Partners LP Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.11431.5840.3711.56431.00150.90661.117
GMI 2.13220.7320.77380.99210.82670.98040.9833
AQI 0.96710.77761.09440.84920.76010.97931.1607
SGI 8.81462.18622.58041.22490.91121.05370.9641
DEPI 4.22011.04710.31711.0690.69570.90560.9586
SGAI 0.14590.88940.67541.27141.27080.99221.2086
LVGI 1.66131.48530.77411.09480.98251.07780.9976
TATA 0.0114-0.0169-0.0405-0.0363-0.0348-0.0384-0.0338
M-score 4.61-1.33-1.87-2.06-2.98-2.75-2.55

Brookfield Infrastructure Partners LP Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 0.82160.96831.08680.84630.90660.83140.97881.16121.1171.1889
GMI 0.88370.89470.92870.96120.98040.99480.98560.97680.98330.9898
AQI 0.76010.7581.19650.96930.97931.00570.9570.96611.16071.0114
SGI 1.11071.11291.0681.06751.05371.03641.01020.96680.96410.9649
DEPI 0.69860.8221.03551.02150.90560.8480.8650.86640.95861.0402
SGAI 1.04250.95090.98010.95380.99221.081.13141.20051.20861.1638
LVGI 0.98251.07910.99281.02411.07781.11481.02281.00450.99760.9805
TATA -0.0348-0.0362-0.029-0.0369-0.0383-0.0472-0.0346-0.0358-0.0264-0.021
M-score -2.90-2.77-2.42-2.76-2.75-2.89-2.72-2.61-2.51-2.45
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