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Enbridge Energy Partners LP (NYSE:EEP)
Beneish M-Score
-2.47 (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 -2.47 suggests that the company is not a manipulator.

EEP' s Beneish M-Score Range Over the Past 10 Years
Min: -4.21   Max: 6.84
Current: -2.47

-4.21
6.84

During the past 13 years, the highest Beneish M-Score of Enbridge Energy Partners LP was 6.84. The lowest was -4.21. 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 * 1.9141+0.528 * 0.7511+0.404 * 0.9625+0.892 * 0.7183+0.115 * 0.8951
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.3292+4.679 * -0.0694-0.327 * 1.1131
=-2.47

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

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $170 Mil.
Revenue was 1120.6 + 1048.9 + 1061.6 + 1136.7 = $4,368 Mil.
Gross Profit was 651 + 630 + 623.9 + 667.1 = $2,572 Mil.
Total Current Assets was $413 Mil.
Total Assets was $18,100 Mil.
Property, Plant and Equipment(Net PPE) was $16,894 Mil.
Depreciation, Depletion and Amortization(DDA) was $576 Mil.
Selling, General & Admin. Expense(SGA) was $919 Mil.
Total Current Liabilities was $1,396 Mil.
Long-Term Debt was $8,208 Mil.
Net Income was -406.4 + 83.7 + 80 + 6.9 = $-236 Mil.
Non Operating Income was 18.8 + 20 + 19.8 + 24.9 = $84 Mil.
Cash Flow from Operations was 414.6 + 280.2 + 266.3 + -23.5 = $938 Mil.
Accounts Receivable was $124 Mil.
Revenue was 1267.7 + 1313.1 + 1428.6 + 2071.7 = $6,081 Mil.
Gross Profit was 672.3 + 586.1 + 585.1 + 846 = $2,690 Mil.
Total Current Assets was $563 Mil.
Total Assets was $18,407 Mil.
Property, Plant and Equipment(Net PPE) was $17,006 Mil.
Depreciation, Depletion and Amortization(DDA) was $517 Mil.
Selling, General & Admin. Expense(SGA) was $962 Mil.
Total Current Liabilities was $1,605 Mil.
Long-Term Debt was $7,170 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)
=(170.2 / 4367.8) / (123.8 / 6081.1)
=0.03896699 / 0.02035816
=1.9141

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)
=(2689.5 / 6081.1) / (2572 / 4367.8)
=0.44227196 / 0.5888548
=0.7511

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 - (413 + 16894) / 18100) / (1 - (562.6 + 17006.4) / 18406.9)
=0.04381215 / 0.04552097
=0.9625

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
=4367.8 / 6081.1
=0.7183

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))
=(517 / (517 + 17006.4)) / (575.8 / (575.8 + 16894))
=0.02950341 / 0.03295974
=0.8951

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)
=(918.8 / 4367.8) / (962.4 / 6081.1)
=0.21035762 / 0.15826084
=1.3292

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)
=((8208.4 + 1395.9) / 18100) / ((7169.8 + 1605) / 18406.9)
=0.53062431 / 0.47671254
=1.1131

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
=(-235.8 - 83.5 - 937.6) / 18100
=-0.0694

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 -2.47 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.

Enbridge Energy Partners LP Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.33070.96140.18880.76751.11557.37340.82210.32690.83570.8442
GMI 0.72391.080.9580.53141.86990.59140.72311.26280.78350.6421
AQI 0.90960.73350.99870.8181.24190.96871.12111.16670.88050.7271
SGI 1.0051.11891.35920.5791.34971.17760.73611.06131.11910.6461
DEPI 1.25871.17850.90010.95370.97011.00041.1371.06841.00820.9496
SGAI 1.11081.06410.8691.83870.7821.03851.61951.02960.90911.6088
LVGI 0.9671.03080.90530.99891.14030.94170.96120.85171.01931.0276
TATA -0.0087-0.0315-0.0171-0.0473-0.0569-0.0377-0.0287-0.085-0.0288-0.0531
M-score -2.37-2.62-2.97-3.76-1.783.15-3.19-3.18-2.81-3.61

Enbridge Energy Partners LP Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 0.36190.56270.83570.81824.53613.29720.84420.69970.04151.9141
GMI 1.09610.95950.78350.76330.6680.60310.64210.65220.67310.7511
AQI 0.87640.82410.88050.91970.73950.75570.72710.67490.85340.9625
SGI 1.14941.13411.11910.97470.87710.77420.64610.65340.66830.7183
DEPI 1.0611.04221.00820.97340.97440.95590.94960.95820.9450.8951
SGAI 0.96910.89860.90911.01941.1041.35521.60881.58721.59051.3292
LVGI 1.05251.02431.01931.040.97461.00821.02761.05241.06541.1131
TATA -0.0645-0.0415-0.0288-0.0356-0.0506-0.0614-0.0531-0.0497-0.0404-0.0694
M-score -3.24-3.03-2.81-3.010.13-1.23-3.61-3.74-4.21-2.47
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