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Enterprise Products Partners LP (NYSE:EPD)
Beneish M-Score
-3.08 (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 -3.08 suggests that the company is not a manipulator.

EPD' s Beneish M-Score Range Over the Past 10 Years
Min: -3.08   Max: -1.15
Current: -3.08

-3.08
-1.15

During the past 13 years, the highest Beneish M-Score of Enterprise Products Partners LP was -1.15. The lowest was -3.08. And the median was -2.41.


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 * 0.8623+0.528 * 0.6836+0.404 * 1.7011+0.892 * 0.6107+0.115 * 0.9647
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.6905+4.679 * -0.0317-0.327 * 0.9187
=-3.08

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $2,802 Mil.
Revenue was 6307.9 + 7092.5 + 7472.5 + 10190.3 = $31,063 Mil.
Gross Profit was 855.3 + 735 + 856.1 + 904.2 = $3,351 Mil.
Total Current Assets was $4,660 Mil.
Total Assets was $48,528 Mil.
Property, Plant and Equipment(Net PPE) was $31,214 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,516 Mil.
Selling, General & Admin. Expense(SGA) was $207 Mil.
Total Current Liabilities was $6,879 Mil.
Long-Term Debt was $20,841 Mil.
Net Income was 649.3 + 551 + 636.1 + 659.8 = $2,496 Mil.
Non Operating Income was -2.5 + -11.2 + 0.5 + 0.8 = $-12 Mil.
Cash Flow from Operations was 689.6 + 947.6 + 954 + 1457.8 = $4,049 Mil.
Accounts Receivable was $5,321 Mil.
Revenue was 12330.2 + 12520.8 + 12909.9 + 13101.3 = $50,862 Mil.
Gross Profit was 915.4 + 881.7 + 1029.4 + 923.7 = $3,750 Mil.
Total Current Assets was $8,366 Mil.
Total Assets was $42,906 Mil.
Property, Plant and Equipment(Net PPE) was $27,963 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,308 Mil.
Selling, General & Admin. Expense(SGA) was $200 Mil.
Total Current Liabilities was $8,972 Mil.
Long-Term Debt was $17,707 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)
=(2802 / 31063.2) / (5320.8 / 50862.2)
=0.0902032 / 0.10461207
=0.8623

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)
=(735 / 50862.2) / (855.3 / 31063.2)
=0.07373256 / 0.10786397
=0.6836

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 - (4660 + 31214.1) / 48527.8) / (1 - (8365.5 + 27963.3) / 42905.5)
=0.26075157 / 0.15328338
=1.7011

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
=31063.2 / 50862.2
=0.6107

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))
=(1307.7 / (1307.7 + 27963.3)) / (1515.8 / (1515.8 + 31214.1))
=0.04467562 / 0.04631239
=0.9647

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)
=(206.8 / 31063.2) / (200.3 / 50862.2)
=0.0066574 / 0.00393809
=1.6905

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)
=((20840.7 + 6878.9) / 48527.8) / ((17706.5 + 8971.8) / 42905.5)
=0.57121073 / 0.62179208
=0.9187

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
=(2496.2 - -12.4 - 4049) / 48527.8
=-0.0317

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 -3.08 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 0.79681.25440.49052.08780.93620.89331.00571.12280.69491
GMI 0.89951.1611.06410.68430.80631.39930.8951.0330.93941
AQI 1.0420.93581.2091.14861.00160.82650.84931.05291.62021
SGI 1.14151.21152.09260.71921.32251.31340.9611.12081.00471
DEPI 1.05951.00811.02410.9350.93161.11691.01950.98480.99281
SGAI 0.89191.14190.74761.85250.84710.67590.97480.98651.13381
LVGI 0.97451.15131.0161.00760.99611.02930.99160.97730.94161
TATA -0.0426-0.0654-0.0255-0.0795-0.0652-0.0376-0.0151-0.0316-0.0292-0.0292
M-score -2.74-2.38-1.93-2.36-2.64-2.27-2.69-2.36-2.68-2.62

Enterprise Products Partners LP Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 1.17511.12280.96081.00940.87410.69490.69330.84690.86230
GMI 1.03281.0331.10041.06691.01070.93940.86260.78490.68360.6353
AQI 1.02251.05291.07871.04051.04241.62021.6131.47681.70114.016
SGI 1.06041.12081.15311.14871.1131.00470.86320.73250.61070.5637
DEPI 0.99360.98480.98210.99170.9630.99280.9860.92730.96470.0435
SGAI 0.97190.98650.95970.95791.00541.13381.27081.46071.69051.1844
LVGI 1.00810.97730.97530.99830.98980.94160.91580.92490.91870.8094
TATA -0.0281-0.0316-0.0397-0.0356-0.0321-0.0292-0.0234-0.0341-0.0317-0.0012
M-score -2.37-2.36-2.47-2.45-2.62-2.68-2.84-3.00-3.08-2.85
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