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Enterprise Products Partners LP (NYSE:EPD)
Beneish M-Score
-2.68 (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 -2.68 suggests that the company is not a manipulator.

EPD' s 10-Year Beneish M-Score Range
Min: -3.49   Max: -1.46
Current: -2.68

-3.49
-1.46

During the past 13 years, the highest Beneish M-Score of Enterprise Products Partners LP was -1.46. The lowest was -3.49. 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 * 0.6949+0.528 * 0.9394+0.404 * 1.6202+0.892 * 1.0047+0.115 * 0.9928
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1338+4.679 * -0.0292-0.327 * 0.9416
=-2.68

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
Accounts Receivable was $3,823 Mil.
Revenue was 10190.3 + 12330.2 + 12520.8 + 12909.9 = $47,951 Mil.
Gross Profit was 904.2 + 915.4 + 881.7 + 1029.4 = $3,731 Mil.
Total Current Assets was $5,491 Mil.
Total Assets was $47,101 Mil.
Property, Plant and Equipment(Net PPE) was $29,882 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,361 Mil.
Selling, General & Admin. Expense(SGA) was $215 Mil.
Total Current Liabilities was $7,874 Mil.
Long-Term Debt was $19,157 Mil.
Net Income was 659.8 + 691.1 + 637.7 + 798.8 = $2,787 Mil.
Non Operating Income was 1.9 + -1.3 + 0.6 + -0.6 = $1 Mil.
Cash Flow from Operations was 1457.8 + 832.5 + 467.8 + 1404.1 = $4,162 Mil.
Accounts Receivable was $5,476 Mil.
Revenue was 13101.3 + 12093.3 + 11149.3 + 11383.1 = $47,727 Mil.
Gross Profit was 923.7 + 819.8 + 782.1 + 962.7 = $3,488 Mil.
Total Current Assets was $7,023 Mil.
Total Assets was $40,139 Mil.
Property, Plant and Equipment(Net PPE) was $26,947 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,218 Mil.
Selling, General & Admin. Expense(SGA) was $188 Mil.
Total Current Liabilities was $8,239 Mil.
Long-Term Debt was $16,227 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)
=(3823 / 47951.2) / (5475.5 / 47727)
=0.07972689 / 0.11472542
=0.6949

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)
=(915.4 / 47727) / (904.2 / 47951.2)
=0.07308861 / 0.07780202
=0.9394

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 - (5490.7 + 29881.6) / 47100.7) / (1 - (7023.4 + 26946.6) / 40138.7)
=0.24900691 / 0.1536846
=1.6202

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
=47951.2 / 47727
=1.0047

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))
=(1217.6 / (1217.6 + 26946.6)) / (1360.5 / (1360.5 + 29881.6))
=0.04323219 / 0.04354701
=0.9928

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)
=(214.5 / 47951.2) / (188.3 / 47727)
=0.0044733 / 0.00394536
=1.1338

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)
=((19157.4 + 7873.7) / 47100.7) / ((16226.5 + 8238.7) / 40138.7)
=0.57390018 / 0.6095165
=0.9416

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
=(2787.4 - 0.6 - 4162.2) / 47100.7
=-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 -2.68 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

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 1.06511.00571.05671.24541.17511.12280.96081.00940.87410.6949
GMI 0.63681.14321.09961.19951.29141.0331.10041.06691.01070.9394
AQI 0.80990.84931.00341.05311.02251.05291.07871.04051.04241.6202
SGI 1.01860.9610.94121.00271.06041.12081.15311.14871.1131.0047
DEPI 1.061.01951.00450.97820.99360.98480.98210.99170.9630.9928
SGAI 0.88730.97480.96920.96560.97190.98650.95970.95791.00541.1338
LVGI 0.96610.99161.00020.9881.00810.97730.97530.99830.98980.9416
TATA -0.0088-0.0151-0.0204-0.0152-0.0281-0.0316-0.0397-0.0356-0.0321-0.0292
M-score -2.68-2.56-2.52-2.19-2.23-2.36-2.47-2.45-2.62-2.68
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