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Energy Transfer Partners LP (NYSE:ETP)
Beneish M-Score
-2.73 (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.

Energy Transfer Partners LP has a M-score of -2.73 suggests that the company is not a manipulator.

ETP' s 10-Year Beneish M-Score Range
Min: -30.34   Max: 4.39
Current: -2.73

-30.34
4.39

During the past 13 years, the highest Beneish M-Score of Energy Transfer Partners LP was 4.39. The lowest was -30.34. And the median was -2.34.


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 Energy Transfer 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 * 0.851+0.528 * 0.8729+0.404 * 1.0851+0.892 * 0.9346+0.115 * 1.5921
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.3375+4.679 * -0.0104-0.327 * 0.9438
=-2.73

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

This Year (Jun15) TTM:Last Year (Jun14) TTM:
Accounts Receivable was $3,168 Mil.
Revenue was 11540 + 9530 + 12279 + 13618 = $46,967 Mil.
Gross Profit was 1551 + 1005 + 757 + 1093 = $4,406 Mil.
Total Current Assets was $7,259 Mil.
Total Assets was $67,551 Mil.
Property, Plant and Equipment(Net PPE) was $42,857 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,314 Mil.
Selling, General & Admin. Expense(SGA) was $465 Mil.
Total Current Liabilities was $5,161 Mil.
Long-Term Debt was $29,058 Mil.
Net Income was 654 + 281 + 108 + 342 = $1,385 Mil.
Non Operating Income was 228 + -34 + -48 + 43 = $189 Mil.
Cash Flow from Operations was 627 + 506 + 564 + 202 = $1,899 Mil.
Accounts Receivable was $3,983 Mil.
Revenue was 14088 + 12232 + 12032 + 11902 = $50,254 Mil.
Gross Profit was 1319 + 1030 + 865 + 901 = $4,115 Mil.
Total Current Assets was $7,213 Mil.
Total Assets was $44,223 Mil.
Property, Plant and Equipment(Net PPE) was $26,491 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,317 Mil.
Selling, General & Admin. Expense(SGA) was $372 Mil.
Total Current Liabilities was $7,515 Mil.
Long-Term Debt was $16,220 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)
=(3168 / 46967) / (3983 / 50254)
=0.06745161 / 0.07925737
=0.851

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)
=(1005 / 50254) / (1551 / 46967)
=0.08188403 / 0.09381055
=0.8729

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 - (7259 + 42857) / 67551) / (1 - (7213 + 26491) / 44223)
=0.25810129 / 0.23786265
=1.0851

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
=46967 / 50254
=0.9346

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))
=(1317 / (1317 + 26491)) / (1314 / (1314 + 42857))
=0.04736047 / 0.02974802
=1.5921

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)
=(465 / 46967) / (372 / 50254)
=0.00990057 / 0.0074024
=1.3375

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)
=((29058 + 5161) / 67551) / ((16220 + 7515) / 44223)
=0.50656541 / 0.53671167
=0.9438

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
=(1385 - 189 - 1899) / 67551
=-0.0104

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.

Energy Transfer Partners LP has a M-score of -2.73 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.

Energy Transfer Partners LP Annual Data

Aug05Aug06Aug07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 1.28870.62351.10260.69061.75710.80.90832.21450.39110.7764
GMI 1.2260.46170.65091.48990.56831.11160.97781.73231.98531.0241
AQI 0.65891.28630.94320.74421.41430.66111.23642.23260.94511.0261
SGI 2.62841.2740.86421.36830.58291.08631.15532.30952.95121.104
DEPI 0.93281.10851.09521.04360.87971.02981.06121.28370.64891.0451
SGAI 0.78336.63741.53780.20131.53640.93381.040.88850.33650.7905
LVGI 1.04661.00120.89331.07880.93660.99990.96940.83971.06120.9809
TATA 0.0429-0.0052-0.0565-0.0389-0.0091-0.0471-0.04-0.0167-0.0471-0.0301
M-score -0.57-3.73-3.03-2.35-2.34-2.87-2.520.72-0.97-2.66

Energy Transfer Partners LP Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 1.89361.28180.87520.39110.59360.90581.10360.76060.59980.851
GMI 2.31573.14453.99091.98531.49951.180.98370.99130.94250.8729
AQI 1.08671.26371.14780.94510.9280.79510.94941.02611.00511.0851
SGI 3.90755.47636.93962.95121.89111.42821.14751.12681.03770.9346
DEPI 1.07810.99531.03120.64890.7810.74931.04221.04511.07971.5921
SGAI 0.44460.30020.23690.33650.41520.52520.62760.80941.09171.3375
LVGI 0.88670.87960.89821.06121.09981.06631.02840.98090.91380.9438
TATA -0.0195-0.0266-0.0249-0.0471-0.054-0.0573-0.0431-0.0304-0.0246-0.0104
M-score 1.723.054.39-0.97-2.03-2.41-2.42-2.68-2.94-2.73
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