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Enterprise Products Partners LP (NYSE:EPD)
Beneish M-Score
-3.00 (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 -3.00 suggests that the company is not a manipulator.

EPD' s 10-Year Beneish M-Score Range
Min: -3.53   Max: -1.16
Current: -3

-3.53
-1.16

During the past 13 years, the highest Beneish M-Score of Enterprise Products Partners LP was -1.16. The lowest was -3.53. And the median was -2.42.


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 * 0.8469+0.528 * 0.7849+0.404 * 1.4768+0.892 * 0.7325+0.115 * 0.9273
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.4607+4.679 * -0.0341-0.327 * 0.9249
=-3.00

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

This Year (Jun15) TTM:Last Year (Jun14) TTM:
Accounts Receivable was $3,346 Mil.
Revenue was 7092.5 + 7472.5 + 10190.3 + 12330.2 = $37,086 Mil.
Gross Profit was 735 + 856.1 + 904.2 + 915.4 = $3,411 Mil.
Total Current Assets was $7,179 Mil.
Total Assets was $48,159 Mil.
Property, Plant and Equipment(Net PPE) was $29,784 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,484 Mil.
Selling, General & Admin. Expense(SGA) was $208 Mil.
Total Current Liabilities was $6,466 Mil.
Long-Term Debt was $20,893 Mil.
Net Income was 551 + 636.1 + 659.8 + 691.1 = $2,538 Mil.
Non Operating Income was -11.2 + 0.5 + 1.9 + -1.3 = $-10 Mil.
Cash Flow from Operations was 947.6 + 954 + 1457.8 + 832.5 = $4,192 Mil.
Accounts Receivable was $5,394 Mil.
Revenue was 12520.8 + 12909.9 + 13101.3 + 12093.3 = $50,625 Mil.
Gross Profit was 881.7 + 1029.4 + 923.7 + 819.8 = $3,655 Mil.
Total Current Assets was $7,472 Mil.
Total Assets was $41,571 Mil.
Property, Plant and Equipment(Net PPE) was $27,555 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,269 Mil.
Selling, General & Admin. Expense(SGA) was $194 Mil.
Total Current Liabilities was $8,470 Mil.
Long-Term Debt was $17,063 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)
=(3346.1 / 37085.5) / (5393.5 / 50625.3)
=0.09022664 / 0.10653764
=0.8469

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)
=(856.1 / 50625.3) / (735 / 37085.5)
=0.0721892 / 0.09196856
=0.7849

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 - (7178.8 + 29783.8) / 48159.4) / (1 - (7471.9 + 27554.7) / 41571.3)
=0.23249459 / 0.15743313
=1.4768

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
=37085.5 / 50625.3
=0.7325

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))
=(1268.8 / (1268.8 + 27554.7)) / (1484.4 / (1484.4 + 29783.8))
=0.04401964 / 0.04747315
=0.9273

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)
=(207.8 / 37085.5) / (194.2 / 50625.3)
=0.00560327 / 0.00383603
=1.4607

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)
=((20892.9 + 6466.1) / 48159.4) / ((17062.9 + 8469.9) / 41571.3)
=0.56809263 / 0.61419296
=0.9249

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
=(2538 - -10.1 - 4191.9) / 48159.4
=-0.0341

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 -3.00 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 0.91140.79681.25440.49052.11360.91580.91070.99611.12280.6949
GMI 0.86390.89951.1611.06410.68431.12341.00440.66571.38890.9394
AQI 0.84911.0420.93581.2090.89181.28990.82650.84931.05291.6202
SGI 1.4731.14151.21152.09260.71921.32251.31340.9611.12081.0047
DEPI 0.53621.05951.00811.02410.93860.9281.11691.01950.98480.9928
SGAI 0.9060.89191.14190.74761.74610.89870.67590.97480.98651.1338
LVGI 1.03260.97451.15131.0160.99761.00611.02930.99160.97730.9416
TATA -0.0184-0.0426-0.0654-0.0255-0.0513-0.06320.0236-0.0169-0.0316-0.0292
M-score -2.41-2.74-2.38-1.93-2.29-2.38-2.18-2.83-2.17-2.68

Enterprise Products Partners LP Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 1.05671.24541.17511.12280.96081.00940.87410.69490.69330.8469
GMI 0.65530.71950.77931.38891.45971.4151.33930.93940.86260.7849
AQI 1.00341.05311.02251.05291.07871.04051.04241.62021.6131.4768
SGI 0.94121.00271.06041.12081.15311.14871.1131.00470.86320.7325
DEPI 1.00450.97820.99360.98480.98210.99170.9630.99280.9860.9273
SGAI 0.96920.96560.97190.98650.95970.95791.00541.13381.27081.4607
LVGI 1.00020.9881.00810.97730.97530.99830.98980.94160.91580.9249
TATA -0.0224-0.0169-0.0297-0.0316-0.0397-0.0356-0.0321-0.0292-0.0234-0.0341
M-score -2.76-2.45-2.51-2.17-2.28-2.26-2.45-2.68-2.84-3.00
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