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Enbridge Energy Partners LP (NYSE:EEP)
Beneish M-Score
-4.04 (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 -4.04 suggests that the company is not a manipulator.

EEP' s 10-Year Beneish M-Score Range
Min: -4.04   Max: 6.84
Current: -4.04

-4.04
6.84

During the past 13 years, the highest Beneish M-Score of Enbridge Energy Partners LP was 6.84. The lowest was -4.04. And the median was -2.57.


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 * 0.0044+0.528 * 0.668+0.404 * 0.7395+0.892 * 0.8771+0.115 * 0.9744
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1228+4.679 * -0.0506-0.327 * 0.9746
=-4.04

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

This Year (Jun15) TTM:Last Year (Jun14) TTM:
Accounts Receivable was $0 Mil.
Revenue was 1313.1 + 1428.6 + 2071.7 + 1942.3 = $6,756 Mil.
Gross Profit was 586.1 + 585.1 + 846 + 594.5 = $2,612 Mil.
Total Current Assets was $631 Mil.
Total Assets was $18,013 Mil.
Property, Plant and Equipment(Net PPE) was $16,541 Mil.
Depreciation, Depletion and Amortization(DDA) was $499 Mil.
Selling, General & Admin. Expense(SGA) was $933 Mil.
Total Current Liabilities was $1,511 Mil.
Long-Term Debt was $7,021 Mil.
Net Income was -97.1 + 140.1 + 214.1 + 20.5 = $278 Mil.
Non Operating Income was 23.3 + 28.9 + 16.1 + 16.3 = $85 Mil.
Cash Flow from Operations was 266.4 + 380.5 + 325.1 + 132.1 = $1,104 Mil.
Accounts Receivable was $52 Mil.
Revenue was 1871.1 + 2079.6 + 1962 + 1789.4 = $7,702 Mil.
Gross Profit was 518.9 + 535.5 + 446.2 + 488.3 = $1,989 Mil.
Total Current Assets was $842 Mil.
Total Assets was $16,063 Mil.
Property, Plant and Equipment(Net PPE) was $14,207 Mil.
Depreciation, Depletion and Amortization(DDA) was $417 Mil.
Selling, General & Admin. Expense(SGA) was $947 Mil.
Total Current Liabilities was $1,824 Mil.
Long-Term Debt was $5,983 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)
=(0.2 / 6755.7) / (51.7 / 7702.1)
=2.96E-5 / 0.00671246
=0.0044

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)
=(585.1 / 7702.1) / (586.1 / 6755.7)
=0.25822828 / 0.38659206
=0.668

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 - (630.8 + 16541.3) / 18013.2) / (1 - (842 + 14207.1) / 16063.4)
=0.04669354 / 0.06314354
=0.7395

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
=6755.7 / 7702.1
=0.8771

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))
=(417.2 / (417.2 + 14207.1)) / (498.9 / (498.9 + 16541.3))
=0.02852786 / 0.02927783
=0.9744

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)
=(932.7 / 6755.7) / (947.1 / 7702.1)
=0.13806119 / 0.12296646
=1.1228

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)
=((7020.6 + 1511.3) / 18013.2) / ((5982.7 + 1824.3) / 16063.4)
=0.4736471 / 0.48601168
=0.9746

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
=(277.6 - 84.6 - 1104.1) / 18013.2
=-0.0506

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 -4.04 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

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 1.32520.74120.34640.32690.24820.36190.56270.83570.77880.0044
GMI 0.81140.92741.21921.26981.08811.10280.96570.78350.76330.668
AQI 1.1391.25271.28461.16671.06850.87640.82410.88050.91970.7395
SGI 0.76150.8570.98781.06131.14041.14941.13411.11910.97470.8771
DEPI 1.10611.06811.0751.06841.07721.0611.04221.00820.97340.9744
SGAI 1.51911.30031.1431.01570.97020.95620.88730.92431.03651.1228
LVGI 1.0080.78260.82210.85170.77871.05251.02431.01931.040.9746
TATA -0.0373-0.0528-0.0736-0.085-0.0721-0.0645-0.0415-0.0288-0.0356-0.0506
M-score -2.69-3.00-3.16-3.18-3.22-3.23-3.03-2.81-3.05-4.04
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