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Enterprise Products Partners LP (NYSE:EPD)
Beneish M-Score
-2.64 (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 -2.64 suggests that the company is not a manipulator.

EPD' s Beneish M-Score Range Over the Past 10 Years
Min: -3.13   Max: -1.14
Current: -2.64

-3.13
-1.14

During the past 13 years, the highest Beneish M-Score of Enterprise Products Partners LP was -1.14. The lowest was -3.13. And the median was -2.44.


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 * 1.4379+0.528 * 0.7156+0.404 * 0.9276+0.892 * 0.7307+0.115 * 1.053
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1276+4.679 * -0.0292-0.327 * 0.9799
=-2.64

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $2,944 Mil.
Revenue was 5920.4 + 5617.8 + 5005.3 + 6155 = $22,699 Mil.
Gross Profit was 854.7 + 795.6 + 858.4 + 912.8 = $3,422 Mil.
Total Current Assets was $5,742 Mil.
Total Assets was $51,258 Mil.
Property, Plant and Equipment(Net PPE) was $33,119 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,524 Mil.
Selling, General & Admin. Expense(SGA) was $170 Mil.
Total Current Liabilities was $7,568 Mil.
Long-Term Debt was $21,121 Mil.
Net Income was 634.6 + 558.5 + 661.2 + 684.8 = $2,539 Mil.
Non Operating Income was -6.2 + -22.9 + 3.6 + -9.3 = $-35 Mil.
Cash Flow from Operations was 813.8 + 945.5 + 899.7 + 1411.2 = $4,070 Mil.
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.



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)
=(2944.1 / 22698.5) / (2802 / 31063.2)
=0.12970461 / 0.0902032
=1.4379

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)
=(3350.6 / 31063.2) / (3421.5 / 22698.5)
=0.10786397 / 0.15073683
=0.7156

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 - (5741.6 + 33119.4) / 51258.4) / (1 - (4660 + 31214.1) / 48527.8)
=0.24186085 / 0.26075157
=0.9276

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
=22698.5 / 31063.2
=0.7307

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))
=(1515.8 / (1515.8 + 31214.1)) / (1523.6 / (1523.6 + 33119.4))
=0.04631239 / 0.04398002
=1.053

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)
=(170.4 / 22698.5) / (206.8 / 31063.2)
=0.0075071 / 0.0066574
=1.1276

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)
=((21121.2 + 7568.3) / 51258.4) / ((20840.7 + 6878.9) / 48527.8)
=0.55970339 / 0.57121073
=0.9799

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
=(2539.1 - -34.8 - 4070.2) / 51258.4
=-0.0292

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 -2.64 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 local exchange's currency.

Enterprise Products Partners LP Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.79681.25440.49052.08780.93620.89331.00571.12280.69491.1926
GMI 0.89951.1611.06410.68430.80631.39930.8951.0330.93940.626
AQI 1.0420.93581.2091.14861.00160.82650.84931.05291.63061.0196
SGI 1.14151.21152.09260.71921.32251.31340.9611.12081.00470.5637
DEPI 1.05951.00811.02410.9350.93161.11691.01950.98480.99280.9637
SGAI 0.89191.14190.74761.85250.84710.67590.97480.98651.13381.593
LVGI 0.97451.15131.0161.00760.99611.02930.99160.97730.93960.9963
TATA -0.0411-0.0636-0.0255-0.0795-0.0652-0.0376-0.0151-0.0316-0.0292-0.0299
M-score -2.74-2.37-1.93-2.36-2.64-2.27-2.69-2.36-2.67-3.13

Enterprise Products Partners LP Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 1.00940.87410.69490.69330.84690.86231.19261.42031.46681.4379
GMI 1.06691.01070.93940.86260.78490.68360.6260.61140.62040.7156
AQI 1.04051.04241.63061.6131.47681.70111.01960.99641.03930.9276
SGI 1.14871.1131.00470.86320.73250.61070.56370.57770.62250.7307
DEPI 0.99170.9630.99280.9860.92730.96470.96370.99011.08911.053
SGAI 0.95791.00541.13381.27081.46071.69051.5931.53861.37141.1276
LVGI 0.99830.98980.93960.91580.92490.91870.99631.00190.99140.9799
TATA -0.0356-0.0321-0.0292-0.0234-0.0341-0.0318-0.0299-0.0278-0.0265-0.0292
M-score -2.45-2.62-2.67-2.84-3.00-3.08-3.13-2.90-2.75-2.64
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