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Energy Transfer Partners LP (NYSE:ETP)
Beneish M-Score
-2.77 (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 -2.77 suggests that the company is not a manipulator.

ETP' s Beneish M-Score Range Over the Past 10 Years
Min: -30.35   Max: 4.35
Current: -2.77

-30.35
4.35

During the past 13 years, the highest Beneish M-Score of Energy Transfer Partners LP was 4.35. The lowest was -30.35. And the median was -2.48.


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 * 1.8157+0.528 * 0.4988+0.404 * 0.8052+0.892 * 0.4419+0.115 * 1.0583
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.274+4.679 * -0.0333-0.327 * 1.0011
=-2.77

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $2,542 Mil.
Revenue was 5289 + 4481 + 5825 + 6601 = $22,196 Mil.
Gross Profit was 1285 + 1165 + 1090 + 1141 = $4,681 Mil.
Total Current Assets was $5,329 Mil.
Total Assets was $66,041 Mil.
Property, Plant and Equipment(Net PPE) was $46,987 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,915 Mil.
Selling, General & Admin. Expense(SGA) was $335 Mil.
Total Current Liabilities was $5,359 Mil.
Long-Term Debt was $28,132 Mil.
Net Income was 370 + 311 + 46 + 417 = $1,144 Mil.
Non Operating Income was 65 + 23 + 43 + 172 = $303 Mil.
Cash Flow from Operations was 466 + 960 + 754 + 860 = $3,040 Mil.
Accounts Receivable was $3,168 Mil.
Revenue was 11540 + 10326 + 13427 + 14933 = $50,226 Mil.
Gross Profit was 1551 + 1220 + 1140 + 1372 = $5,283 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 $1,853 Mil.
Selling, General & Admin. Expense(SGA) was $595 Mil.
Total Current Liabilities was $5,161 Mil.
Long-Term Debt was $29,058 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)
=(2542 / 22196) / (3168 / 50226)
=0.11452514 / 0.0630749
=1.8157

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)
=(5283 / 50226) / (4681 / 22196)
=0.10518457 / 0.21089385
=0.4988

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 - (5329 + 46987) / 66041) / (1 - (7259 + 42857) / 67551)
=0.20782544 / 0.25810129
=0.8052

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
=22196 / 50226
=0.4419

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))
=(1853 / (1853 + 42857)) / (1915 / (1915 + 46987))
=0.04144487 / 0.03915995
=1.0583

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)
=(335 / 22196) / (595 / 50226)
=0.01509281 / 0.01184645
=1.274

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)
=((28132 + 5359) / 66041) / ((29058 + 5161) / 67551)
=0.50712436 / 0.50656541
=1.0011

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
=(1144 - 303 - 3040) / 66041
=-0.0333

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 -2.77 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

Aug06Aug07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.62351.10260.69061.75710.80570.90192.21450.3750.87161.0197
GMI 0.46170.65091.48990.56831.11760.99341.69741.87060.93750.6182
AQI 1.28630.94320.74421.41430.66111.23642.23260.94511.06720.8396
SGI 1.2740.86421.36830.58291.07861.16362.30953.07831.14770.6182
DEPI 1.10851.09521.04360.87971.11150.98331.28370.52181.15651.0025
SGAI 6.63741.53780.20131.53640.93810.84471.08380.36160.941.4777
LVGI 1.00120.89331.07880.93660.99990.96940.83971.06120.97531.0048
TATA -0.0052-0.0565-0.0389-0.0091-0.0471-0.04-0.0167-0.0543-0.0344-0.0273
M-score -3.73-3.03-2.35-2.34-2.86-2.480.66-0.98-2.60-3.28

Energy Transfer Partners LP Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 0.56970.87121.03750.88420.58630.82740.76471.00511.56611.8157
GMI 1.41491.11950.90480.95090.87910.82010.74670.60950.55040.4988
AQI 0.9280.79510.94941.06721.00511.08510.96280.83960.84850.8052
SGI 1.97021.48491.22071.13131.06160.96130.75780.62710.5390.4419
DEPI 0.62880.63010.66851.15650.8631.35891.34141.00251.39461.0583
SGAI 0.45440.57530.69340.90051.2321.46681.56771.54261.4321.274
LVGI 1.09981.06631.02840.97530.91380.94380.9611.00480.99911.0011
TATA -0.0613-0.0645-0.0597-0.0339-0.0398-0.0204-0.025-0.0273-0.0334-0.0333
M-score -2.09-2.48-2.59-2.58-3.08-2.85-3.22-3.30-2.85-2.77
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