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Enterprise Products Partners LP (NYSE:EPD)
Beneish M-Score
-2.47 (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 -2.47 suggests that the company is not a manipulator.

EPD' s 10-Year Beneish M-Score Range
Min: -3.53   Max: -1.15
Current: -2.47

-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 -2.38.


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 * 0.9613+0.528 * 1.1004+0.404 * 1.0787+0.892 * 1.1531+0.115 * 0.9821
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9597+4.679 * -0.0397-0.327 * 0.9753
=-2.47

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

This Year (Mar14) TTM:Last Year (Mar13) TTM:
Accounts Receivable was $4,994 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.
Net Income was 798.8 + 698.9 + 592 + 552.5 = $2,642 Mil.
Non Operating Income was -0.6 + -0.6 + 0.4 + -0.6 = $-1 Mil.
Cash Flow from Operations was 1404.1 + 1499.3 + 835.3 + 531 = $4,270 Mil.
Accounts Receivable was $4,505 Mil.
Revenue was 11383.1 + 11072.1 + 10468.7 + 9789.8 = $42,714 Mil.
Gross Profit was 962.7 + 840.7 + 808.9 + 780.3 = $3,393 Mil.
Total Current Assets was $7,368 Mil.
Total Assets was $38,101 Mil.
Property, Plant and Equipment(Net PPE) was $25,223 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,131 Mil.
Selling, General & Admin. Expense(SGA) was $174 Mil.
Total Current Liabilities was $7,519 Mil.
Long-Term Debt was $16,394 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)
=(4993.6 / 49253.8) / (4504.9 / 42713.7)
=0.10138507 / 0.10546733
=0.9613

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)
=(923.7 / 42713.7) / (1029.4 / 49253.8)
=0.07942651 / 0.07217717
=1.1004

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 - (7333.2 + 27262.5) / 40990.5) / (1 - (7368.3 + 25222.5) / 38101.4)
=0.15600688 / 0.14462986
=1.0787

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
=49253.8 / 42713.7
=1.1531

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))
=(1130.8 / (1130.8 + 25222.5)) / (1245.5 / (1245.5 + 27262.5))
=0.04290924 / 0.04368949
=0.9821

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)
=(192 / 49253.8) / (173.5 / 42713.7)
=0.00389818 / 0.00406193
=0.9597

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)
=((17467.8 + 7622) / 40990.5) / ((16393.7 + 7518.6) / 38101.4)
=0.61208817 / 0.62759636
=0.9753

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
=(2642.2 - -1.4 - 4269.7) / 40990.5
=-0.0397

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 -2.47 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

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
DSRI 0.9020.90470.7681.06760.99671.05421.24991.1751.12360.9613
GMI 0.78630.7650.68680.63681.14321.09961.19951.29141.0331.1004
AQI 0.82650.70760.75920.80990.84931.00341.05311.02251.05291.0787
SGI 1.31341.28281.12561.01860.9610.94121.00271.06041.12081.1531
DEPI 1.11691.11851.09111.061.01951.00450.97820.99360.98480.9821
SGAI 0.67590.73260.76290.88730.97480.96920.96560.97190.98650.9597
LVGI 1.02931.0120.98240.96610.99161.00020.9881.00810.97730.9753
TATA -0.0393-0.0286-0.0185-0.0088-0.0151-0.0204-0.0152-0.0281-0.0316-0.0397
M-score -2.60-2.64-2.87-2.67-2.56-2.52-2.18-2.23-2.36-2.47
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