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Energy Transfer Partners LP (NYSE:ETP)
Beneish M-Score
-2.29 (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 -2.29 suggests that the company is not a manipulator.

ETP' s 10-Year Beneish M-Score Range
Min: -30.34   Max: 4.82
Current: -2.29

-30.34
4.82

During the past 13 years, the highest Beneish M-Score of Energy Transfer Partners LP was 4.82. The lowest was -30.34. And the median was -2.23.


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 * 0.9505+0.528 * 1.28+0.404 * 0.7951+0.892 * 1.3824+0.115 * 0.9814
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.4263+4.679 * -0.0521-0.327 * 1.0663
=-2.29

* 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 $4,319 Mil.
Revenue was 13029 + 12232 + 12032 + 11902 = $49,195 Mil.
Gross Profit was 1085 + 1047 + 867 + 917 = $3,916 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 $1,055 Mil.
Selling, General & Admin. Expense(SGA) was $373 Mil.
Total Current Liabilities was $7,515 Mil.
Long-Term Debt was $16,220 Mil.
Net Income was 471 + 415 + -541 + 355 = $700 Mil.
Non Operating Income was 90 + 144 + -136 + 122 = $220 Mil.
Cash Flow from Operations was 891 + 682 + 631 + 578 = $2,782 Mil.
Accounts Receivable was $3,287 Mil.
Revenue was 11551 + 10854 + 11761.238 + 1420.474 = $35,587 Mil.
Gross Profit was 995 + 933 + 1264.021 + 433.984 = $3,626 Mil.
Total Current Assets was $5,858 Mil.
Total Assets was $43,651 Mil.
Property, Plant and Equipment(Net PPE) was $24,734 Mil.
Depreciation, Depletion and Amortization(DDA) was $966 Mil.
Selling, General & Admin. Expense(SGA) was $633 Mil.
Total Current Liabilities was $5,728 Mil.
Long-Term Debt was $16,243 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)
=(4319 / 49195) / (3287 / 35586.712)
=0.08779347 / 0.09236594
=0.9505

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)
=(1047 / 35586.712) / (1085 / 49195)
=0.10189211 / 0.07960159
=1.28

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 - (7213 + 26491) / 44223) / (1 - (5858 + 24734) / 43651)
=0.23786265 / 0.2991684
=0.7951

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
=49195 / 35586.712
=1.3824

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))
=(965.981 / (965.981 + 24734)) / (1055 / (1055 + 26491))
=0.03758684 / 0.03829957
=0.9814

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)
=(373 / 49195) / (632.985 / 35586.712)
=0.00758207 / 0.01778712
=0.4263

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)
=((16220 + 7515) / 44223) / ((16243 + 5728) / 43651)
=0.53671167 / 0.50333326
=1.0663

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
=(700 - 220 - 2782) / 44223
=-0.0521

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 -2.29 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

Aug04Aug05Aug06Aug07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 2.87491.2980.61911.12040.70591.69640.82350.99311.99450.3966
GMI 0.93071.2260.46170.65091.48990.56831.11160.97311.70581.9974
AQI 0.61510.65891.28630.94320.74421.41430.66111.23562.2340.9451
SGI 2.52082.62841.2740.86421.36830.58291.08631.16412.29212.9512
DEPI 0.99410.93281.10851.09521.04360.87971.02980.99951.3630.6489
SGAI 0.92430.78336.63741.53780.20131.53640.93381.03031.0020.3382
LVGI 0.91061.04661.00120.89331.07880.93660.99990.96940.83971.0612
TATA -0.02720.0429-0.0052-0.0565-0.0389-0.0091-0.0471-0.04-0.0167-0.0471
M-score 0.32-0.56-3.74-3.01-2.33-2.40-2.85-2.440.47-0.96

Energy Transfer Partners LP Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 0.8020.78421.06311.99121.77761.1180.72560.39720.60450.9505
GMI 0.80360.76240.64641.70162.27082.90663.47212.02121.51731.28
AQI 2.47842.00841.84982.2341.08671.26371.14780.94510.9280.7951
SGI 1.13481.00330.89222.29593.90745.85227.96192.94631.88781.3824
DEPI 0.98770.94671.08971.3631.15560.88040.69480.64890.77830.9814
SGAI -1.1319-1.3709-0.72151.00040.68750.50230.44370.31430.37120.4263
LVGI 0.93490.9820.92690.83970.88670.87960.89821.06121.09981.0663
TATA -0.0424-0.041-0.0433-0.0167-0.0151-0.0236-0.0243-0.0471-0.054-0.0521
M-score -1.86-2.18-2.230.471.573.074.82-0.94-2.01-2.29
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