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Enterprise Products Partners LP (NYSE:EPD)
Beneish M-Score
-2.45 (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 -2.45 suggests that the company is not a manipulator.

EPD' s 10-Year Beneish M-Score Range
Min: -3.53   Max: -1.18
Current: -2.45

-3.53
-1.18

During the past 13 years, the highest Beneish M-Score of Enterprise Products Partners LP was -1.18. 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 * 0.8741+0.528 * 1.3393+0.404 * 1.0424+0.892 * 1.113+0.115 * 0.963
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0054+4.679 * -0.0321-0.327 * 0.9898
=-2.45

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
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.
Net Income was 691.1 + 637.7 + 798.8 + 698.9 = $2,827 Mil.
Non Operating Income was -1.3 + 0.6 + -0.6 + -0.6 = $-2 Mil.
Cash Flow from Operations was 832.5 + 467.8 + 1404.1 + 1499.3 = $4,204 Mil.
Accounts Receivable was $5,469 Mil.
Revenue was 12093.3 + 11149.3 + 11383.1 + 11072.1 = $45,698 Mil.
Gross Profit was 819.8 + 782.1 + 962.7 + 1948.2 = $4,513 Mil.
Total Current Assets was $7,771 Mil.
Total Assets was $40,125 Mil.
Property, Plant and Equipment(Net PPE) was $26,454 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,189 Mil.
Selling, General & Admin. Expense(SGA) was $179 Mil.
Total Current Liabilities was $8,724 Mil.
Long-Term Debt was $16,482 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)
=(5320.8 / 50862.2) / (5469.1 / 45697.8)
=0.10461207 / 0.11967972
=0.8741

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)
=(881.7 / 45697.8) / (915.4 / 50862.2)
=0.09875311 / 0.07373256
=1.3393

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 - (8365.5 + 27963.3) / 42905.5) / (1 - (7770.9 + 26453.9) / 40125)
=0.15328338 / 0.14704548
=1.0424

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
=50862.2 / 45697.8
=1.113

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))
=(1189.3 / (1189.3 + 26453.9)) / (1307.7 / (1307.7 + 27963.3))
=0.04302324 / 0.04467562
=0.963

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)
=(200.3 / 50862.2) / (179 / 45697.8)
=0.00393809 / 0.00391704
=1.0054

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)
=((17706.5 + 8971.8) / 42905.5) / ((16481.6 + 8723.8) / 40125)
=0.62179208 / 0.62817196
=0.9898

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
=(2826.5 - -1.9 - 4203.7) / 42905.5
=-0.0321

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 -2.45 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 1.50510.91140.79681.25440.482.16010.91580.91070.99611.1228
GMI 1.11880.86390.89951.1610.84180.8651.12341.00440.66571.3889
AQI 0.75270.84911.0420.93580.9831.09691.28990.82650.84931.0529
SGI 1.55641.4731.14151.21151.29241.16461.32251.31340.9611.1208
DEPI 1.67720.53621.05951.00811.05520.91090.9281.11691.01950.9848
SGAI 0.79750.9060.89191.14190.7991.63390.89870.67590.97480.9865
LVGI 0.8291.03260.97451.15131.05320.96241.00611.02930.99160.9773
TATA -0.0145-0.0184-0.0426-0.0654-0.0193-0.0513-0.06320.0236-0.0169-0.0316
M-score -1.46-2.41-2.74-2.38-2.85-1.65-2.38-2.18-2.83-2.17

Enterprise Products Partners LP Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.77421.06510.99611.05671.24541.17511.12280.96081.00940.8741
GMI 0.86340.79630.66570.65530.71950.77931.38891.45971.4151.3393
AQI 0.75920.80990.84931.00341.05311.02251.05291.07871.04051.0424
SGI 1.12561.01860.9610.94121.00271.06041.12081.15311.14871.113
DEPI 1.09321.06491.01951.00450.97820.99360.98480.98210.99170.963
SGAI 0.74430.80590.97480.96920.96560.97190.98650.95970.95791.0054
LVGI 0.98240.96610.99161.00020.9881.00810.97730.97530.99830.9898
TATA 0.04460.0513-0.0172-0.0224-0.0169-0.0297-0.0316-0.0397-0.0356-0.0321
M-score -2.48-2.30-2.83-2.76-2.45-2.51-2.17-2.28-2.26-2.45
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