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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 10-Year Beneish M-Score Range
Min: -3   Max: 39.02
Current: -2.43

-3
39.02

During the past 7 years, the highest Beneish M-Score of Brookfield Infrastructure Partners LP was 39.02. The lowest was -3.00. And the median was -2.21.


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 * 1.2327+0.528 * 0.8829+0.404 * 1.1965+0.892 * 0.9416+0.115 * 1.0322
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1117+4.679 * -0.0288-0.327 * 0.9928
=-2.45

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was $354 Mil.
Revenue was 488 + 480 + 470 + 431 = $1,869 Mil.
Gross Profit was 273 + 268 + 258 + 244 = $1,043 Mil.
Total Current Assets was $1,119 Mil.
Total Assets was $16,302 Mil.
Property, Plant and Equipment(Net PPE) was $8,094 Mil.
Depreciation, Depletion and Amortization(DDA) was $345 Mil.
Selling, General & Admin. Expense(SGA) was $112 Mil.
Total Current Liabilities was $867 Mil.
Long-Term Debt was $6,304 Mil.
Net Income was 12 + 26 + -137 + 26 = $-73 Mil.
Non Operating Income was 6 + -7 + -210 + -13 = $-224 Mil.
Cash Flow from Operations was 156 + 140 + 163 + 161 = $620 Mil.
Accounts Receivable was $305 Mil.
Revenue was 462 + 463 + 578 + 482 = $1,985 Mil.
Gross Profit was 260 + 241 + 263 + 214 = $978 Mil.
Total Current Assets was $4,531 Mil.
Total Assets was $17,744 Mil.
Property, Plant and Equipment(Net PPE) was $6,764 Mil.
Depreciation, Depletion and Amortization(DDA) was $298 Mil.
Selling, General & Admin. Expense(SGA) was $107 Mil.
Total Current Liabilities was $2,525 Mil.
Long-Term Debt was $5,337 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)
=(354 / 1869) / (305 / 1985)
=0.1894061 / 0.15365239
=1.2327

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)
=(268 / 1985) / (273 / 1869)
=0.49269521 / 0.55805243
=0.8829

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 - (1119 + 8094) / 16302) / (1 - (4531 + 6764) / 17744)
=0.43485462 / 0.3634468
=1.1965

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
=1869 / 1985
=0.9416

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))
=(298 / (298 + 6764)) / (345 / (345 + 8094))
=0.04219768 / 0.04088162
=1.0322

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)
=(112 / 1869) / (107 / 1985)
=0.05992509 / 0.05390428
=1.1117

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)
=((6304 + 867) / 16302) / ((5337 + 2525) / 17744)
=0.43988468 / 0.44307935
=0.9928

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
=(-73 - -224 - 620) / 16302
=-0.0288

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

Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 0.44561.30241.0015
GMI 0.65120.99210.8267
AQI 1.09440.84920.7601
SGI 2.58041.22490.9112
DEPI 0.31711.0690.6957
SGAI 0.67541.27141.2708
LVGI 0.77411.09480.9825
TATA -0.0405-0.0363-0.0348
M-score -1.86-2.31-2.98

Brookfield Infrastructure Partners LP Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 0.85641.30711.53191.30241.07560.85141.10291.00151.17881.2327
GMI 0.81840.87210.89260.99210.96050.90890.86080.82670.83430.8829
AQI 1.04921.0280.86650.84920.90850.60630.76850.76010.7581.1965
SGI 1.67191.22870.99561.22491.1881.12661.05680.91120.91420.9416
DEPI 0.55030.72810.91421.0690.89770.78180.81550.69570.81911.0322
SGAI 1.01681.27161.55221.27141.2751.26641.22451.27081.15761.1117
LVGI 0.7670.83390.91051.09481.00841.00761.06990.98251.07910.9928
TATA -0.0363-0.0328-0.0305-0.0363-0.0365-0.0511-0.0568-0.0348-0.0362-0.0288
M-score -2.24-2.23-2.32-2.31-2.53-3.02-2.85-2.98-2.82-2.45
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