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Enterprise Products Partners LP (NYSE:EPD)
Beneish M-Score
-2.90 (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.

Enterprise Products Partners LP has a M-score of -2.90 suggests that the company is not a manipulator.

EPD' s Beneish M-Score Range Over the Past 10 Years
Min: -3.12   Max: -1.14
Current: -2.9

-3.12
-1.14

During the past 13 years, the highest Beneish M-Score of Enterprise Products Partners LP was -1.14. The lowest was -3.12. And the median was -2.44.


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 Enterprise Products 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 * 1.4203+0.528 * 0.6114+0.404 * 0.9964+0.892 * 0.5777+0.115 * 0.9901
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.5386+4.679 * -0.0278-0.327 * 1.0019
=-2.90

* 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 $2,449 Mil.
Revenue was 5005.3 + 6155 + 6307.9 + 7092.5 = $24,561 Mil.
Gross Profit was 858.4 + 912.8 + 855.3 + 735 = $3,362 Mil.
Total Current Assets was $4,593 Mil.
Total Assets was $49,737 Mil.
Property, Plant and Equipment(Net PPE) was $32,673 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,531 Mil.
Selling, General & Admin. Expense(SGA) was $187 Mil.
Total Current Liabilities was $6,013 Mil.
Long-Term Debt was $21,920 Mil.
Net Income was 661.2 + 684.8 + 649.3 + 551 = $2,546 Mil.
Non Operating Income was 3.6 + -9.3 + -2.5 + -11.2 = $-19 Mil.
Cash Flow from Operations was 899.7 + 1411.2 + 689.6 + 947.6 = $3,948 Mil.
Accounts Receivable was $2,985 Mil.
Revenue was 7472.5 + 10190.3 + 12330.2 + 12520.8 = $42,514 Mil.
Gross Profit was 856.1 + 904.2 + 915.4 + 881.7 = $3,557 Mil.
Total Current Assets was $4,435 Mil.
Total Assets was $46,505 Mil.
Property, Plant and Equipment(Net PPE) was $30,368 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,408 Mil.
Selling, General & Admin. Expense(SGA) was $211 Mil.
Total Current Liabilities was $5,876 Mil.
Long-Term Debt was $20,192 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)
=(2449.4 / 24560.7) / (2985.1 / 42513.8)
=0.09972843 / 0.07021485
=1.4203

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)
=(912.8 / 42513.8) / (858.4 / 24560.7)
=0.08367636 / 0.13686499
=0.6114

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 - (4592.6 + 32673.3) / 49737.4) / (1 - (4434.8 + 30367.6) / 46505.3)
=0.25074692 / 0.25164659
=0.9964

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
=24560.7 / 42513.8
=0.5777

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))
=(1408 / (1408 + 30367.6)) / (1530.7 / (1530.7 + 32673.3))
=0.04431073 / 0.04475208
=0.9901

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)
=(187.2 / 24560.7) / (210.6 / 42513.8)
=0.00762193 / 0.00495369
=1.5386

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)
=((21919.8 + 6013.4) / 49737.4) / ((20192.2 + 5875.9) / 46505.3)
=0.56161359 / 0.56054041
=1.0019

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
=(2546.3 - -19.4 - 3948.1) / 49737.4
=-0.0278

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.

Enterprise Products Partners LP has a M-score of -2.90 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.

Enterprise Products Partners LP Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.79681.25440.79431.28940.93620.89331.00571.12280.69491.1926
GMI 0.89951.1610.84180.8651.12341.00440.66571.38890.93940.626
AQI 1.0420.93581.2091.14861.00160.82650.84931.05291.63061.0275
SGI 1.14151.21151.29241.16461.32251.31340.9611.12081.00470.5637
DEPI 1.05951.00811.33050.72240.9281.11691.01950.98480.99280.9637
SGAI 0.89191.14190.7991.63390.89870.67590.97480.98651.13381.593
LVGI 0.97451.15131.0161.00760.99611.02930.99160.97730.93960.9986
TATA -0.0411-0.0636-0.0118-0.0485-0.06320.0236-0.0169-0.0316-0.0291-0.0298
M-score -2.74-2.37-2.40-2.45-2.47-2.20-2.82-2.17-2.67-3.12

Enterprise Products Partners LP Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 1.12280.96081.00940.87410.69490.69330.84690.86231.19261.4203
GMI 1.0331.10041.06691.01070.93940.86260.78490.68360.6260.6114
AQI 1.05291.07871.04051.04241.63061.6131.47681.70111.02750.9964
SGI 1.12081.15311.14871.1131.00470.86320.73250.61070.56370.5777
DEPI 0.98480.98210.99170.9630.99280.9860.92730.96470.96370.9901
SGAI 0.98650.95970.95791.00541.13381.27081.46071.69051.5931.5386
LVGI 0.97730.97530.99830.98980.93960.91580.92490.91870.99861.0019
TATA -0.0316-0.0397-0.0356-0.0321-0.0292-0.0234-0.0341-0.0318-0.0298-0.0278
M-score -2.36-2.47-2.45-2.62-2.67-2.84-3.00-3.08-3.12-2.90
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