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Energy Transfer Partners LP (NYSE:ETP)
Beneish M-Score
-2.66 (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 -2.66 suggests that the company is not a manipulator.

ETP' s 10-Year Beneish M-Score Range
Min: -7.03   Max: 0.72
Current: -2.66

-7.03
0.72

During the past 13 years, the highest Beneish M-Score of Energy Transfer Partners LP was 0.72. The lowest was -7.03. 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 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 * 0.7764+0.528 * 1.0241+0.404 * 1.0261+0.892 * 1.104+0.115 * 1.0451
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.7905+4.679 * -0.0301-0.327 * 0.9809
=-2.66

* 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 $2,879 Mil.
Revenue was 12279 + 13618 + 13029 + 12232 = $51,158 Mil.
Gross Profit was 757 + 1093 + 1085 + 1047 = $3,982 Mil.
Total Current Assets was $5,439 Mil.
Total Assets was $48,221 Mil.
Property, Plant and Equipment(Net PPE) was $29,743 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,130 Mil.
Selling, General & Admin. Expense(SGA) was $377 Mil.
Total Current Liabilities was $6,040 Mil.
Long-Term Debt was $18,332 Mil.
Net Income was 108 + 342 + 471 + 415 = $1,336 Mil.
Non Operating Income was -48 + 43 + 90 + 144 = $229 Mil.
Cash Flow from Operations was 564 + 421 + 891 + 682 = $2,558 Mil.
Accounts Receivable was $3,359 Mil.
Revenue was 12032 + 11902 + 11551 + 10854 = $46,339 Mil.
Gross Profit was 865 + 901 + 995 + 933 = $3,694 Mil.
Total Current Assets was $6,239 Mil.
Total Assets was $43,702 Mil.
Property, Plant and Equipment(Net PPE) was $25,947 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,032 Mil.
Selling, General & Admin. Expense(SGA) was $432 Mil.
Total Current Liabilities was $6,067 Mil.
Long-Term Debt was $16,451 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)
=(2879 / 51158) / (3359 / 46339)
=0.05627663 / 0.07248754
=0.7764

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)
=(1093 / 46339) / (757 / 51158)
=0.07971687 / 0.07783729
=1.0241

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 - (5439 + 29743) / 48221) / (1 - (6239 + 25947) / 43702)
=0.27040086 / 0.26351197
=1.0261

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
=51158 / 46339
=1.104

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))
=(1032 / (1032 + 25947)) / (1130 / (1130 + 29743))
=0.03825197 / 0.03660156
=1.0451

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)
=(377 / 51158) / (432 / 46339)
=0.00736933 / 0.0093226
=0.7905

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)
=((18332 + 6040) / 48221) / ((16451 + 6067) / 43702)
=0.50542295 / 0.51526246
=0.9809

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
=(1336 - 229 - 2558) / 48221
=-0.0301

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 -2.66 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

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 0.86212.2221.89361.28180.87520.39110.59360.92531.12650.7764
GMI 0.85881.73582.31573.14453.99091.98531.49281.21941.01481.0241
AQI 1.84982.23261.08671.26371.14780.94510.9280.79510.94941.0261
SGI 1.00842.30163.90755.47636.93962.95121.89111.39811.12421.104
DEPI 0.79121.28371.07810.99531.03120.64890.7810.92651.04221.0451
SGAI 1.64320.89130.44460.30020.23690.33650.43430.51190.61240.7905
LVGI 0.92690.83970.88670.87960.89821.06121.09981.06631.02840.9809
TATA -0.042-0.0167-0.0195-0.0266-0.0249-0.0471-0.054-0.0521-0.0428-0.0301
M-score -2.640.721.723.054.39-0.97-2.04-2.35-2.40-2.66
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