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Energy Transfer Partners LP (NYSE:ETP)
Beneish M-Score
-2.91 (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 -2.91 suggests that the company is not a manipulator.

ETP' s 10-Year Beneish M-Score Range
Min: -30.34   Max: 4.39
Current: -2.91

-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 -2.33.


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 * 0.6129+0.528 * 0.9771+0.404 * 1.0051+0.892 * 1.0155+0.115 * 1.0797
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0248+4.679 * -0.0243-0.327 * 0.9138
=-2.91

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
Accounts Receivable was $2,464 Mil.
Revenue was 9530 + 12279 + 13618 + 13029 = $48,456 Mil.
Gross Profit was 1005 + 757 + 1093 + 1085 = $3,940 Mil.
Total Current Assets was $6,206 Mil.
Total Assets was $50,629 Mil.
Property, Plant and Equipment(Net PPE) was $31,649 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,186 Mil.
Selling, General & Admin. Expense(SGA) was $384 Mil.
Total Current Liabilities was $4,707 Mil.
Long-Term Debt was $20,430 Mil.
Net Income was 281 + 108 + 342 + 471 = $1,202 Mil.
Non Operating Income was -34 + -48 + 43 + 90 = $51 Mil.
Cash Flow from Operations was 506 + 564 + 421 + 891 = $2,382 Mil.
Accounts Receivable was $3,959 Mil.
Revenue was 12232 + 12032 + 11902 + 11551 = $47,717 Mil.
Gross Profit was 1030 + 865 + 901 + 995 = $3,791 Mil.
Total Current Assets was $7,069 Mil.
Total Assets was $43,589 Mil.
Property, Plant and Equipment(Net PPE) was $25,578 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,038 Mil.
Selling, General & Admin. Expense(SGA) was $369 Mil.
Total Current Liabilities was $7,491 Mil.
Long-Term Debt was $16,191 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)
=(2464 / 48456) / (3959 / 47717)
=0.05085026 / 0.08296833
=0.6129

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)
=(757 / 47717) / (1005 / 48456)
=0.07944758 / 0.08131088
=0.9771

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 - (6206 + 31649) / 50629) / (1 - (7069 + 25578) / 43589)
=0.25230599 / 0.25102664
=1.0051

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
=48456 / 47717
=1.0155

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))
=(1038 / (1038 + 25578)) / (1186 / (1186 + 31649))
=0.0389991 / 0.03611999
=1.0797

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)
=(384 / 48456) / (369 / 47717)
=0.00792472 / 0.00773309
=1.0248

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)
=((20430 + 4707) / 50629) / ((16191 + 7491) / 43589)
=0.4964941 / 0.54330221
=0.9138

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
=(1202 - 51 - 2382) / 50629
=-0.0243

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 -2.91 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

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 2.2221.89361.28180.87520.39110.59360.92531.12650.77640.6129
GMI 1.73582.31573.14453.99091.98531.49951.22481.0191.02850.9771
AQI 2.23261.08671.26371.14780.94510.9280.79510.94941.02611.0051
SGI 2.30163.90755.47636.93962.95121.89111.39811.12421.1041.0155
DEPI 1.28371.07810.99531.03120.64890.7810.92651.04221.04511.0797
SGAI 0.89130.44460.30020.23690.33650.41520.48740.58420.75481.0248
LVGI 0.83970.88670.87960.89821.06121.09981.06631.02840.98090.9138
TATA -0.0167-0.0195-0.0266-0.0249-0.0471-0.054-0.0521-0.0428-0.0301-0.0243
M-score 0.721.723.054.39-0.97-2.03-2.34-2.40-2.65-2.91
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