Switch to:
Enterprise Products Partners LP (NYSE:EPD)
Beneish M-Score
-2.84 (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 -2.84 suggests that the company is not a manipulator.

EPD' s 10-Year Beneish M-Score Range
Min: -3.53   Max: -1.15
Current: -2.84

-3.53
-1.15

During the past 13 years, the highest Beneish M-Score of Enterprise Products Partners LP was -1.15. The lowest was -3.53. 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 * 0.6933+0.528 * 0.8626+0.404 * 1.613+0.892 * 0.8632+0.115 * 0.986
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.2708+4.679 * -0.0234-0.327 * 0.9158
=-2.84

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
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.
Net Income was 636.1 + 659.8 + 691.1 + 637.7 = $2,625 Mil.
Non Operating Income was 0.5 + 1.9 + -1.3 + 0.6 = $2 Mil.
Cash Flow from Operations was 954 + 1457.8 + 832.5 + 467.8 = $3,712 Mil.
Accounts Receivable was $4,988 Mil.
Revenue was 12909.9 + 13101.3 + 12093.3 + 11149.3 = $49,254 Mil.
Gross Profit was 1029.4 + 923.7 + 819.8 + 782.1 = $3,555 Mil.
Total Current Assets was $7,333 Mil.
Total Assets was $40,991 Mil.
Property, Plant and Equipment(Net PPE) was $27,263 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,246 Mil.
Selling, General & Admin. Expense(SGA) was $192 Mil.
Total Current Liabilities was $7,622 Mil.
Long-Term Debt was $17,468 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)
=(2985.1 / 42513.8) / (4988.1 / 49253.8)
=0.07021485 / 0.1012734
=0.6933

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)
=(904.2 / 49253.8) / (856.1 / 42513.8)
=0.07217717 / 0.08367636
=0.8626

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 - (4434.8 + 30367.6) / 46505.3) / (1 - (7333.2 + 27262.5) / 40990.5)
=0.25164659 / 0.15600688
=1.613

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
=42513.8 / 49253.8
=0.8632

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))
=(1245.5 / (1245.5 + 27262.5)) / (1408 / (1408 + 30367.6))
=0.04368949 / 0.04431073
=0.986

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)
=(210.6 / 42513.8) / (192 / 49253.8)
=0.00495369 / 0.00389818
=1.2708

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)
=((20192.2 + 5875.9) / 46505.3) / ((17467.8 + 7622) / 40990.5)
=0.56054041 / 0.61208817
=0.9158

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
=(2624.7 - 1.7 - 3712.1) / 46505.3
=-0.0234

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 -2.84 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 0.91140.79681.25440.49052.08780.93620.89331.00571.12280.6949
GMI 0.86390.89951.1611.06410.68431.12340.78631.14321.0330.9394
AQI 0.84911.0420.93581.2091.14861.00160.82650.84931.05291.6202
SGI 1.4731.14151.21152.09260.71921.32251.31340.9611.12081.0047
DEPI 0.53621.05951.00811.02410.9350.93161.11691.01950.98480.9928
SGAI 0.9060.89191.14190.74761.85250.84710.67590.97480.98651.1338
LVGI 1.03260.97451.15131.0161.00760.99611.02930.99160.97730.9416
TATA -0.0184-0.0426-0.0654-0.0255-0.0795-0.0191-0.039-0.0151-0.0316-0.0292
M-score -2.41-2.74-2.38-1.93-2.36-2.25-2.60-2.56-2.36-2.68

Enterprise Products Partners LP Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 1.00571.05671.24541.17511.12280.96081.00940.87410.69490.6933
GMI 1.14321.09961.19951.29141.0331.10041.06691.01070.93940.8626
AQI 0.84931.00341.05311.02251.05291.07871.04051.04241.62021.613
SGI 0.9610.94121.00271.06041.12081.15311.14871.1131.00470.8632
DEPI 1.01951.00450.97820.99360.98480.98210.99170.9630.99280.986
SGAI 0.97480.96920.96560.97190.98650.95970.95791.00541.13381.2708
LVGI 0.99161.00020.9881.00810.97730.97530.99830.98980.94160.9158
TATA -0.0151-0.0204-0.0152-0.0281-0.0316-0.0397-0.0356-0.0321-0.0292-0.0234
M-score -2.56-2.52-2.19-2.23-2.36-2.47-2.45-2.62-2.68-2.84
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)

GuruFocus Premium Plus Membership

FEEDBACK