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Enbridge Energy Partners LP (NYSE:EEP)
Beneish M-Score
-4.21 (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 -4.21 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: -4.21

-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 -2.57.


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 * 0.0415+0.528 * 0.6731+0.404 * 0.8534+0.892 * 0.6683+0.115 * 0.945
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.5905+4.679 * -0.0404-0.327 * 1.0654
=-4.21

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $6 Mil.
Revenue was 1048.9 + 1061.6 + 1136.7 + 1267.7 = $4,515 Mil.
Gross Profit was 630 + 623.9 + 667.1 + 672.3 = $2,593 Mil.
Total Current Assets was $517 Mil.
Total Assets was $18,914 Mil.
Property, Plant and Equipment(Net PPE) was $17,643 Mil.
Depreciation, Depletion and Amortization(DDA) was $564 Mil.
Selling, General & Admin. Expense(SGA) was $975 Mil.
Total Current Liabilities was $1,330 Mil.
Long-Term Debt was $8,214 Mil.
Net Income was 83.7 + 80 + 6.9 + 82.1 = $253 Mil.
Non Operating Income was 20 + 19.8 + 24.9 + 22.5 = $87 Mil.
Cash Flow from Operations was 280.2 + 266.3 + -23.5 + 407.4 = $930 Mil.
Accounts Receivable was $206 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 $917 Mil.
Total Current Liabilities was $1,511 Mil.
Long-Term Debt was $7,021 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)
=(5.7 / 4514.9) / (205.7 / 6755.7)
=0.00126249 / 0.03044836
=0.0415

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)
=(2611.7 / 6755.7) / (2593.3 / 4514.9)
=0.38659206 / 0.57438703
=0.6731

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 - (516.8 + 17643) / 18913.5) / (1 - (630.8 + 16541.3) / 18013.2)
=0.03984984 / 0.04669354
=0.8534

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
=4514.9 / 6755.7
=0.6683

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))
=(498.9 / (498.9 + 16541.3)) / (564.1 / (564.1 + 17643))
=0.02927783 / 0.03098242
=0.945

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)
=(974.8 / 4514.9) / (917.1 / 6755.7)
=0.21590733 / 0.13575203
=1.5905

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)
=((8213.9 + 1330.4) / 18913.5) / ((7020.6 + 1511.3) / 18013.2)
=0.50462897 / 0.4736471
=1.0654

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
=(252.7 - 87.2 - 930.4) / 18913.5
=-0.0404

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 -4.21 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

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

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 0.24820.36190.56270.83570.81824.53613.29720.84420.69970.0415
GMI 1.08151.09610.95950.78350.76330.6680.60310.64210.65220.6731
AQI 1.06850.87640.82410.88050.91970.73950.75570.72710.67490.8534
SGI 1.14041.14941.13411.11910.97470.87710.77420.64610.65340.6683
DEPI 1.07721.0611.04221.00820.97340.97440.95590.94960.95820.945
SGAI 0.98350.96910.89860.90911.01941.1041.35521.60881.58721.5905
LVGI 0.77871.05251.02431.01931.040.97461.00821.02761.05241.0654
TATA -0.0721-0.0645-0.0415-0.0288-0.0356-0.0506-0.0614-0.0531-0.0497-0.0404
M-score -3.23-3.24-3.03-2.81-3.010.13-1.23-3.61-3.74-4.21
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