Switch to:
Enbridge Energy Partners LP (NYSE:EEP)
Beneish M-Score
-3.73 (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 -3.73 suggests that the company is not a manipulator.

EEP' s Beneish M-Score Range Over the Past 10 Years
Min: -4   Max: 6.86
Current: -3.73

-4
6.86

During the past 13 years, the highest Beneish M-Score of Enbridge Energy Partners LP was 6.86. The lowest was -4.00. 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 * 0.6997+0.528 * 0.6522+0.404 * 0.6749+0.892 * 0.6534+0.115 * 0.9582
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.5611+4.679 * -0.0497-0.327 * 1.0524
=-3.73

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $17 Mil.
Revenue was 1061.6 + 1136.7 + 1267.7 + 1313.1 = $4,779 Mil.
Gross Profit was 623.9 + 667.1 + 672.3 + 586.1 = $2,549 Mil.
Total Current Assets was $472 Mil.
Total Assets was $18,827 Mil.
Property, Plant and Equipment(Net PPE) was $17,573 Mil.
Depreciation, Depletion and Amortization(DDA) was $549 Mil.
Selling, General & Admin. Expense(SGA) was $969 Mil.
Total Current Liabilities was $1,399 Mil.
Long-Term Debt was $7,998 Mil.
Net Income was 80 + 6.9 + 82.1 + -97.1 = $72 Mil.
Non Operating Income was 19.8 + 24.9 + 22.5 + 23.3 = $91 Mil.
Cash Flow from Operations was 266.3 + -23.5 + 407.4 + 266.4 = $917 Mil.
Accounts Receivable was $37 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.



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)
=(17.1 / 4779.1) / (37.4 / 7313.7)
=0.00357808 / 0.00511369
=0.6997

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)
=(2544.5 / 7313.7) / (2549.4 / 4779.1)
=0.34790872 / 0.53344772
=0.6522

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 - (472 + 17572.6) / 18827.2) / (1 - (786.7 + 16157.9) / 18056.7)
=0.04156752 / 0.06158933
=0.6749

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
=4779.1 / 7313.7
=0.6534

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))
=(482.8 / (482.8 + 16157.9)) / (548.7 / (548.7 + 17572.6))
=0.0290132 / 0.03027928
=0.9582

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)
=(969.2 / 4779.1) / (950.1 / 7313.7)
=0.20279969 / 0.12990689
=1.5611

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)
=((7997.7 + 1399.1) / 18827.2) / ((6995.5 + 1568.1) / 18056.7)
=0.49910767 / 0.47426163
=1.0524

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
=(71.9 - 90.5 - 916.6) / 18827.2
=-0.0497

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 -3.73 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 1.33070.96140.18580.78011.11557.37340.82210.32690.83570.8442
GMI 0.72391.080.94260.53911.86290.57180.74781.25070.79550.6421
AQI 0.90960.73350.99870.8181.24190.96871.12111.16670.88050.7271
SGI 1.0051.11891.38140.56981.34971.17760.73611.06131.11910.6461
DEPI 1.25871.17850.90010.95370.97011.00041.1371.06841.00820.9496
SGAI 1.11081.06410.89191.79940.78621.02851.64171.04520.89821.5824
LVGI 0.9671.03080.90530.99891.14030.89451.05690.78011.06541.0276
TATA -0.0087-0.0315-0.0172-0.0473-0.0569-0.0377-0.0287-0.085-0.0288-0.0531
M-score -2.37-2.62-2.96-3.75-1.793.16-3.21-3.17-2.82-3.60

Enbridge Energy Partners LP Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 0.32690.24820.36190.56270.83570.81824.53613.29720.84420.6997
GMI 1.26261.08251.08410.94870.79550.77360.67690.61080.64210.6522
AQI 1.16671.06850.87640.82410.88050.91970.73950.75570.72710.6749
SGI 1.06131.14041.14941.13411.11910.97470.87710.77420.64610.6534
DEPI 1.06841.07721.0611.04221.00820.97340.97440.95590.94960.9582
SGAI 1.04521.00280.99130.92230.89821.00781.0921.33821.58241.5611
LVGI 0.78010.77871.05251.02431.06541.040.97461.00821.02761.0524
TATA -0.085-0.0721-0.0645-0.0415-0.0288-0.0356-0.0506-0.0614-0.0531-0.0497
M-score -3.16-3.23-3.25-3.04-2.82-3.010.14-1.23-3.60-3.73
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK