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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: -1.15
Current: -2.45

-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 -2.40.


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 * 1.0094+0.528 * 1.0669+0.404 * 1.0405+0.892 * 1.1487+0.115 * 0.9917
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9579+4.679 * -0.0356-0.327 * 0.9983
=-2.45

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was $5,394 Mil.
Revenue was 12520.8 + 12909.9 + 13101.3 + 12093.3 = $50,625 Mil.
Gross Profit was 881.7 + 1029.4 + 923.7 + 819.8 = $3,655 Mil.
Total Current Assets was $7,472 Mil.
Total Assets was $41,571 Mil.
Property, Plant and Equipment(Net PPE) was $27,555 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,269 Mil.
Selling, General & Admin. Expense(SGA) was $194 Mil.
Total Current Liabilities was $8,470 Mil.
Long-Term Debt was $17,063 Mil.
Net Income was 637.7 + 798.8 + 698.9 + 592 = $2,727 Mil.
Non Operating Income was 0.6 + -0.6 + -0.6 + 0.4 = $-0 Mil.
Cash Flow from Operations was 467.8 + 1404.1 + 1499.3 + 835.3 = $4,207 Mil.
Accounts Receivable was $4,652 Mil.
Revenue was 11149.3 + 11383.1 + 11072.1 + 10468.7 = $44,073 Mil.
Gross Profit was 782.1 + 962.7 + 840.7 + 808.9 = $3,394 Mil.
Total Current Assets was $6,580 Mil.
Total Assets was $37,877 Mil.
Property, Plant and Equipment(Net PPE) was $25,566 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,167 Mil.
Selling, General & Admin. Expense(SGA) was $177 Mil.
Total Current Liabilities was $6,873 Mil.
Long-Term Debt was $16,430 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)
=(5393.5 / 50625.3) / (4651.5 / 44073.2)
=0.10653764 / 0.10554033
=1.0094

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)
=(1029.4 / 44073.2) / (881.7 / 50625.3)
=0.07701733 / 0.0721892
=1.0669

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 - (7471.9 + 27554.7) / 41571.3) / (1 - (6580 + 25566.1) / 37876.9)
=0.15743313 / 0.15130066
=1.0405

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
=50625.3 / 44073.2
=1.1487

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))
=(1167 / (1167 + 25566.1)) / (1268.8 / (1268.8 + 27554.7))
=0.04365375 / 0.04401964
=0.9917

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)
=(194.2 / 50625.3) / (176.5 / 44073.2)
=0.00383603 / 0.0040047
=0.9579

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)
=((17062.9 + 8469.9) / 41571.3) / ((16429.6 + 6873.1) / 37876.9)
=0.61419296 / 0.61522194
=0.9983

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
=(2727.4 - -0.2 - 4206.5) / 41571.3
=-0.0356

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 1.50510.91140.79681.25440.49052.08780.93620.89331.00571.1228
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 -1.46-2.41-2.74-2.38-1.93-2.36-2.25-2.60-2.56-2.36

Enterprise Products Partners LP Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 0.90920.77421.06511.00571.05671.24541.17511.12280.96081.0094
GMI 0.7650.68680.63681.14321.09961.19951.29141.0331.10041.0669
AQI 0.70760.75920.80990.84931.00341.05311.02251.05291.07871.0405
SGI 1.28281.12561.01860.9610.94121.00271.06041.12081.15311.1487
DEPI 1.11851.09111.061.01951.00450.97820.99360.98480.98210.9917
SGAI 0.73260.76290.88730.97480.96920.96560.97190.98650.95970.9579
LVGI 1.0120.98240.96610.99161.00020.9881.00810.97730.97530.9983
TATA -0.0286-0.0185-0.0088-0.0151-0.0204-0.0152-0.0281-0.0316-0.0397-0.0356
M-score -2.63-2.87-2.68-2.56-2.52-2.19-2.23-2.36-2.47-2.45
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