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Energy Transfer Partners LP (NYSE:ETP)
Beneish M-Score
-3.05 (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 -3.05 suggests that the company is not a manipulator.

ETP' s Beneish M-Score Range Over the Past 10 Years
Min: -30.34   Max: 4.39
Current: -3.05

-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 -2.41.


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 * 0.8395+0.528 * 0.8293+0.404 * 0.9628+0.892 * 0.6903+0.115 * 1.5783
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.301+4.679 * -0.0138-0.327 * 0.961
=-3.05

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $2,413 Mil.
Revenue was 6601 + 11540 + 9530 + 9110 = $36,781 Mil.
Gross Profit was 1141 + 1551 + 1005 + 120 = $3,817 Mil.
Total Current Assets was $5,325 Mil.
Total Assets was $64,145 Mil.
Property, Plant and Equipment(Net PPE) was $42,821 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,375 Mil.
Selling, General & Admin. Expense(SGA) was $361 Mil.
Total Current Liabilities was $4,483 Mil.
Long-Term Debt was $27,449 Mil.
Net Income was 417 + 654 + 281 + 108 = $1,460 Mil.
Non Operating Income was 172 + 228 + -34 + -104 = $262 Mil.
Cash Flow from Operations was 860 + 627 + 506 + 90 = $2,083 Mil.
Accounts Receivable was $4,164 Mil.
Revenue was 14933 + 14088 + 12232 + 12032 = $53,285 Mil.
Gross Profit was 1372 + 1319 + 1030 + 865 = $4,586 Mil.
Total Current Assets was $7,444 Mil.
Total Assets was $48,571 Mil.
Property, Plant and Equipment(Net PPE) was $28,545 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,474 Mil.
Selling, General & Admin. Expense(SGA) was $402 Mil.
Total Current Liabilities was $7,621 Mil.
Long-Term Debt was $17,540 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)
=(2413 / 36781) / (4164 / 53285)
=0.06560452 / 0.07814582
=0.8395

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)
=(1551 / 53285) / (1141 / 36781)
=0.0860655 / 0.10377641
=0.8293

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 - (5325 + 42821) / 64145) / (1 - (7444 + 28545) / 48571)
=0.24941928 / 0.25904346
=0.9628

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
=36781 / 53285
=0.6903

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))
=(1474 / (1474 + 28545)) / (1375 / (1375 + 42821))
=0.04910224 / 0.03111141
=1.5783

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)
=(361 / 36781) / (402 / 53285)
=0.00981485 / 0.00754434
=1.301

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)
=((27449 + 4483) / 64145) / ((17540 + 7621) / 48571)
=0.49780965 / 0.51802516
=0.961

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
=(1460 - 262 - 2083) / 64145
=-0.0138

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 -3.05 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

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
DSRI 1.28180.87520.39110.59360.90581.07640.78860.62310.8860.8395
GMI 3.14453.99091.98531.49951.180.94721.04520.99230.91260.8293
AQI 1.26371.14780.94510.9280.79510.94941.02611.00511.08510.9628
SGI 5.47636.93962.95121.89111.42821.17661.08680.99880.89770.6903
DEPI 0.99531.03120.64890.7810.74930.78131.04511.07971.59211.5783
SGAI 0.30020.23690.33650.41520.52520.63740.74121.00931.25471.301
LVGI 0.87960.89821.06121.09981.06631.02840.98090.91380.94380.961
TATA -0.0266-0.0249-0.0471-0.054-0.0573-0.0531-0.0295-0.0238-0.0098-0.0138
M-score 3.054.39-0.97-2.03-2.41-2.52-2.64-2.91-2.69-3.05
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