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Enbridge Energy Partners LP (NYSE:EEP)
Beneish M-Score
-3.01 (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 -3.01 suggests that the company is not a manipulator.

EEP' s 10-Year Beneish M-Score Range
Min: -3.99   Max: 6.84
Current: -3.01

-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 -2.47.


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 * 0.5627+0.528 * 0.9535+0.404 * 0.8241+0.892 * 1.1341+0.115 * 1.0422
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9131+4.679 * -0.0345-0.327 * 1.0243
=-3.01

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $49 Mil.
Revenue was 1942.3 + 1871.1 + 2079.6 + 1962 = $7,855 Mil.
Gross Profit was 594.5 + 518.9 + 535.5 + 472.9 = $2,122 Mil.
Total Current Assets was $888 Mil.
Total Assets was $16,947 Mil.
Property, Plant and Equipment(Net PPE) was $15,038 Mil.
Depreciation, Depletion and Amortization(DDA) was $436 Mil.
Selling, General & Admin. Expense(SGA) was $944 Mil.
Total Current Liabilities was $1,712 Mil.
Long-Term Debt was $6,302 Mil.
Net Income was 20.5 + 43.9 + 93.3 + -16.8 = $141 Mil.
Non Operating Income was 16.3 + 13.8 + 19.9 + -85.3 = $-35 Mil.
Cash Flow from Operations was 132.1 + 148.8 + 210.8 + 269.9 = $762 Mil.
Accounts Receivable was $76 Mil.
Revenue was 1789.4 + 1672.7 + 1693 + 1771.2 = $6,926 Mil.
Gross Profit was 488.3 + 522.8 + 289.5 + 483.4 = $1,784 Mil.
Total Current Assets was $455 Mil.
Total Assets was $13,884 Mil.
Property, Plant and Equipment(Net PPE) was $12,414 Mil.
Depreciation, Depletion and Amortization(DDA) was $376 Mil.
Selling, General & Admin. Expense(SGA) was $912 Mil.
Total Current Liabilities was $1,642 Mil.
Long-Term Debt was $4,767 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)
=(48.5 / 7855) / (76 / 6926.3)
=0.00617441 / 0.01097267
=0.5627

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)
=(518.9 / 6926.3) / (594.5 / 7855)
=0.25756898 / 0.27012094
=0.9535

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 - (888.1 + 15038.1) / 16947.1) / (1 - (455.3 + 12413.8) / 13884)
=0.0602404 / 0.07309853
=0.8241

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
=7855 / 6926.3
=1.1341

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))
=(375.9 / (375.9 + 12413.8)) / (436.4 / (436.4 + 15038.1))
=0.02939084 / 0.02820123
=1.0422

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)
=(944 / 7855) / (911.6 / 6926.3)
=0.12017823 / 0.13161428
=0.9131

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)
=((6301.9 + 1711.5) / 16947.1) / ((4767.3 + 1641.9) / 13884)
=0.47284786 / 0.46162489
=1.0243

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
=(140.9 - -35.3 - 761.6) / 16947.1
=-0.0345

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 -3.01 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 1.14471.01381.33070.96140.18880.76751.11557.37340.82210.3269
GMI 1.07811.49260.72391.080.9580.53141.86990.59140.71911.2507
AQI 0.86070.86140.90960.73350.99870.8181.24190.96871.12111.1667
SGI 1.35291.50921.0051.11891.35920.5791.34971.17760.73611.0613
DEPI 0.91410.96811.25871.17850.90010.95370.97011.00041.1371.0684
SGAI 0.95660.791.11081.06410.8691.83870.7821.03851.64171.0452
LVGI 1.04341.06420.9671.03080.90530.99891.14030.94170.96120.8148
TATA -0.0256-0.0454-0.0087-0.0315-0.0171-0.0473-0.0569-0.0377-0.0272-0.0771
M-score -2.18-2.01-2.37-2.62-2.97-3.76-1.783.15-3.19-3.14

Enbridge Energy Partners LP Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.88341.08110.82211.32520.74120.34640.32690.24820.36190.5627
GMI 0.50140.59210.70820.81140.92741.21921.25071.07371.08820.9535
AQI 1.05221.01641.12111.1391.25271.28461.16671.06850.87640.8241
SGI 0.89690.7620.73610.76150.8570.98781.06131.14041.14941.1341
DEPI 1.15521.14041.1371.10611.06811.0751.06841.07721.0611.0422
SGAI 1.34021.55271.64171.51911.30031.1431.04520.99770.98310.9131
LVGI 0.95480.9360.96121.0080.78260.82210.81480.77871.05251.0243
TATA -0.0319-0.0365-0.0272-0.0373-0.0528-0.0736-0.0771-0.0644-0.0571-0.0345
M-score -3.10-3.06-3.19-2.69-3.00-3.16-3.14-3.20-3.21-3.01
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