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Enterprise Products Partners LP (NYSE:EPD)
Beneish M-Score
-2.36 (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 -2.36 suggests that the company is not a manipulator.

EPD' s 10-Year Beneish M-Score Range
Min: -3.49   Max: -1.46
Current: -2.36

-3.49
-1.46

During the past 13 years, the highest Beneish M-Score of Enterprise Products Partners LP was -1.46. The lowest was -3.49. And the median was -2.37.


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 * 1.1236+0.528 * 1.033+0.404 * 1.0529+0.892 * 1.1208+0.115 * 0.9848
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9865+4.679 * -0.0316-0.327 * 0.9773
=-2.36

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

This Year (Dec13) TTM:Last Year (Dec12) TTM:
Accounts Receivable was $5,482 Mil.
Revenue was 13101.3 + 12093.3 + 11149.3 + 11383.1 = $47,727 Mil.
Gross Profit was 923.7 + 819.8 + 782.1 + 962.7 = $3,488 Mil.
Total Current Assets was $7,023 Mil.
Total Assets was $40,139 Mil.
Property, Plant and Equipment(Net PPE) was $26,947 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,218 Mil.
Selling, General & Admin. Expense(SGA) was $188 Mil.
Total Current Liabilities was $8,239 Mil.
Long-Term Debt was $16,227 Mil.
Net Income was 698.9 + 592 + 552.5 + 753.5 = $2,597 Mil.
Non Operating Income was -0.6 + 0.4 + -0.6 + -0.3 = $-1 Mil.
Cash Flow from Operations was 1499.3 + 835.3 + 531 + 999.9 = $3,866 Mil.
Accounts Receivable was $4,353 Mil.
Revenue was 11072.1 + 10468.7 + 9789.8 + 11252.5 = $42,583 Mil.
Gross Profit was 840.7 + 808.9 + 780.3 + 785.3 = $3,215 Mil.
Total Current Assets was $5,843 Mil.
Total Assets was $35,934 Mil.
Property, Plant and Equipment(Net PPE) was $24,846 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,105 Mil.
Selling, General & Admin. Expense(SGA) was $170 Mil.
Total Current Liabilities was $7,756 Mil.
Long-Term Debt was $14,655 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)
=(5482.3 / 47727) / (4353.4 / 42583.1)
=0.11486789 / 0.10223305
=1.1236

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)
=(819.8 / 42583.1) / (923.7 / 47727)
=0.07550413 / 0.07308861
=1.033

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 - (7023.4 + 26946.6) / 40138.7) / (1 - (5843.1 + 24846.4) / 35934.4)
=0.1536846 / 0.14595763
=1.0529

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
=47727 / 42583.1
=1.1208

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))
=(1104.9 / (1104.9 + 24846.4)) / (1217.6 / (1217.6 + 26946.6))
=0.0425759 / 0.04323219
=0.9848

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)
=(188.3 / 47727) / (170.3 / 42583.1)
=0.00394536 / 0.00399924
=0.9865

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)
=((16226.5 + 8238.7) / 40138.7) / ((14655.2 + 7755.7) / 35934.4)
=0.6095165 / 0.62366145
=0.9773

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
=(2596.9 - -1.1 - 3865.5) / 40138.7
=-0.0316

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 -2.36 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 1.50510.91140.79681.25440.49052.11360.92470.9020.99671.1236
GMI 1.11880.86390.89951.1611.06410.68431.12340.78631.14321.033
AQI 0.75270.84911.0420.93581.2091.14861.00160.82650.84931.0529
SGI 1.55641.4731.14151.21152.09260.71921.32251.31340.9611.1208
DEPI 1.67720.53621.05951.00811.02410.9350.93161.11691.01950.9848
SGAI 0.79750.9060.89191.14190.74761.85250.84710.67590.97480.9865
LVGI 0.8291.03260.97451.15131.0161.00760.99611.02930.99160.9773
TATA -0.0156-0.0184-0.0426-0.0654-0.0255-0.0795-0.0191-0.039-0.0151-0.0316
M-score -1.46-2.41-2.74-2.38-1.93-2.34-2.27-2.60-2.56-2.36

Enterprise Products Partners LP Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DSRI 1.01480.9020.90470.7681.06760.99671.05421.24991.1751.1236
GMI 1.19340.78630.7650.68680.63681.14321.09961.19951.29141.033
AQI 1.00720.82650.70760.75920.80990.84931.00341.05311.02251.0529
SGI 1.29961.31341.28281.12561.01860.9610.94121.00271.06041.1208
DEPI 1.03541.11691.11851.09111.061.01951.00450.97820.99360.9848
SGAI 0.7380.67590.73260.76290.88730.97480.96920.96560.97190.9865
LVGI 1.06181.02931.0120.98240.96610.99161.00020.9881.00810.9773
TATA -0.0067-0.0393-0.0286-0.0185-0.0088-0.0151-0.0204-0.0152-0.0281-0.0316
M-score -2.10-2.60-2.64-2.87-2.67-2.56-2.52-2.18-2.23-2.36
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