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Enbridge Energy Partners LP (NYSE:EEP)
Beneish M-Score
-3.05 (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.

Enbridge Energy Partners LP has a M-score of -3.05 suggests that the company is not a manipulator.

EEP' s 10-Year Beneish M-Score Range
Min: -3.99   Max: 6.84
Current: -3.05

-3.99
6.84

During the past 13 years, the highest Beneish M-Score of Enbridge Energy Partners LP was 6.84. The lowest was -3.99. And the median was -2.52.


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 Enbridge Energy 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 * 0.7788+0.528 * 0.7633+0.404 * 0.9197+0.892 * 0.9747+0.115 * 0.9734
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0365+4.679 * -0.0356-0.327 * 1.04
=-3.05

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
Accounts Receivable was $36 Mil.
Revenue was 1428.6 + 2071.7 + 1942.3 + 1871.1 = $7,314 Mil.
Gross Profit was 585.1 + 846 + 594.5 + 518.9 = $2,545 Mil.
Total Current Assets was $787 Mil.
Total Assets was $18,057 Mil.
Property, Plant and Equipment(Net PPE) was $16,158 Mil.
Depreciation, Depletion and Amortization(DDA) was $483 Mil.
Selling, General & Admin. Expense(SGA) was $950 Mil.
Total Current Liabilities was $1,568 Mil.
Long-Term Debt was $6,996 Mil.
Net Income was 140.1 + 214.1 + 20.5 + 43.9 = $419 Mil.
Non Operating Income was 28.9 + 16.1 + 16.3 + 13.8 = $75 Mil.
Cash Flow from Operations was 380.5 + 325.1 + 132.1 + 148.8 = $987 Mil.
Accounts Receivable was $47 Mil.
Revenue was 2079.6 + 1962 + 1789.4 + 1672.7 = $7,504 Mil.
Gross Profit was 535.5 + 446.2 + 488.3 + 522.8 = $1,993 Mil.
Total Current Assets was $575 Mil.
Total Assets was $15,353 Mil.
Property, Plant and Equipment(Net PPE) was $13,750 Mil.
Depreciation, Depletion and Amortization(DDA) was $400 Mil.
Selling, General & Admin. Expense(SGA) was $941 Mil.
Total Current Liabilities was $1,919 Mil.
Long-Term Debt was $5,083 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)
=(35.6 / 7313.7) / (46.9 / 7503.7)
=0.00486758 / 0.00625025
=0.7788

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)
=(846 / 7503.7) / (585.1 / 7313.7)
=0.26557565 / 0.34790872
=0.7633

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 - (786.7 + 16157.9) / 18056.7) / (1 - (575 + 13749.8) / 15352.9)
=0.06158933 / 0.06696455
=0.9197

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
=7313.7 / 7503.7
=0.9747

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))
=(399.6 / (399.6 + 13749.8)) / (482.8 / (482.8 + 16157.9))
=0.02824148 / 0.0290132
=0.9734

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)
=(950.1 / 7313.7) / (940.5 / 7503.7)
=0.12990689 / 0.12533817
=1.0365

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)
=((6995.5 + 1568.1) / 18056.7) / ((5082.6 + 1918.6) / 15352.9)
=0.47426163 / 0.45601808
=1.04

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
=(418.6 - 75.1 - 986.5) / 18056.7
=-0.0356

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.

Enbridge Energy Partners LP has a M-score of -3.05 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.

Enbridge Energy Partners LP Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 1.01381.33070.96140.18880.76751.11557.37340.82210.32690.8357
GMI 1.49260.72391.080.9580.53141.86990.59140.71911.26980.7835
AQI 0.86140.90960.73350.99870.8181.24190.96871.12111.16670.8805
SGI 1.50921.0051.11891.35920.5791.34971.17760.73611.06131.1191
DEPI 0.96811.25871.17850.90010.95370.97011.00041.1371.06841.0082
SGAI 0.791.11081.06410.8691.83870.7821.03851.64171.01570.9243
LVGI 1.06420.9671.03080.90530.99891.14030.94170.96120.85171.0193
TATA -0.0454-0.0087-0.0315-0.0171-0.0473-0.0569-0.0377-0.0272-0.085-0.0288
M-score -2.01-2.37-2.62-2.97-3.76-1.783.15-3.19-3.18-2.81

Enbridge Energy Partners LP Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 0.82211.32520.74120.34640.32690.24820.36190.56270.83570.7788
GMI 0.70820.81140.92741.21921.26981.08811.10280.96570.78350.7633
AQI 1.12111.1391.25271.28461.16671.06850.87640.82410.88050.9197
SGI 0.73610.76150.8570.98781.06131.14041.14941.13411.11910.9747
DEPI 1.1371.10611.06811.0751.06841.07721.0611.04221.00820.9734
SGAI 1.64171.51911.30031.1431.01570.97020.95620.88730.92431.0365
LVGI 0.96121.0080.78260.82210.85170.77871.05251.02431.01931.04
TATA -0.0272-0.0373-0.0528-0.0736-0.085-0.0721-0.0645-0.0415-0.0288-0.0356
M-score -3.19-2.69-3.00-3.16-3.18-3.22-3.23-3.03-2.81-3.05
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