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Energy Transfer Partners, L.P. (NYSE:ETP)
Beneish M-Score
-0.99 (As of Today)

Warning Sign:

Beneish M-Score -0.99 higher than -2.22, which implies that it might have manipulated its financial results.

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, L.P. has a M-score of -0.99 signals that the company is a manipulator.

ETP' s 10-Year Beneish M-Score Range
Min: -7.03   Max: 0.5
Current: -0.99

-7.03
0.5

During the past 13 years, the highest Beneish M-Score of Energy Transfer Partners, L.P. was 0.50. The lowest was -7.03. And the median was -2.24.


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, L.P. 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 * 0.3966+0.528 * 1.9572+0.404 * 0.9451+0.892 * 2.9512+0.115 * 0.6489
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.3778+4.679 * -0.0471-0.327 * 1.0612
=-0.99

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

This Year (Dec13) TTM:Last Year (Dec12) TTM:
Accounts Receivable was $3,580 Mil.
Revenue was 12032 + 11902 + 11551 + 10854 = $46,339 Mil.
Gross Profit was 867 + 917 + 1007 + 956 = $3,747 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 $485 Mil.
Total Current Liabilities was $6,067 Mil.
Long-Term Debt was $16,451 Mil.
Net Income was -541 + 355 + 320 + 322 = $456 Mil.
Non Operating Income was -136 + 122 + 72 + 82 = $140 Mil.
Cash Flow from Operations was 631 + 578 + 811 + 353 = $2,373 Mil.
Accounts Receivable was $3,059 Mil.
Revenue was 10981 + 1802 + 1596 + 1323 = $15,702 Mil.
Gross Profit was 863 + 609 + 601 + 412 = $2,485 Mil.
Total Current Assets was $5,404 Mil.
Total Assets was $43,230 Mil.
Property, Plant and Equipment(Net PPE) was $25,773 Mil.
Depreciation, Depletion and Amortization(DDA) was $656 Mil.
Selling, General & Admin. Expense(SGA) was $435 Mil.
Total Current Liabilities was $5,548 Mil.
Long-Term Debt was $15,442 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)
=(3580 / 46339) / (3059 / 15702)
=0.07725674 / 0.19481595
=0.3966

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)
=(917 / 15702) / (867 / 46339)
=0.15826009 / 0.08086061
=1.9572

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 - (6239 + 25947) / 43702) / (1 - (5404 + 25773) / 43230)
=0.26351197 / 0.27881101
=0.9451

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
=46339 / 15702
=2.9512

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))
=(656 / (656 + 25773)) / (1032 / (1032 + 25947))
=0.02482122 / 0.03825197
=0.6489

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)
=(485 / 46339) / (435 / 15702)
=0.01046635 / 0.02770348
=0.3778

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)
=((16451 + 6067) / 43702) / ((15442 + 5548) / 43230)
=0.51526246 / 0.48554245
=1.0612

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
=(456 - 140 - 2373) / 43702
=-0.0471

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, L.P. has a M-score of -0.99 signals that the company is likely to 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, L.P. Annual Data

Aug04Aug05Aug06Aug07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 2.87491.2980.61911.12040.70591.69640.82351.00191.97690.3966
GMI 0.93071.2260.46170.65091.48990.56831.11160.97781.73231.9572
AQI 0.61510.65891.28630.94320.74421.41430.66111.23642.23260.9451
SGI 2.52082.62841.2740.86421.36830.58291.08631.15532.30952.9512
DEPI 0.99410.93281.10851.09521.04360.87971.02981.06121.28370.6489
SGAI 0.92430.78336.63741.53780.20131.53640.93381.040.88850.3778
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 0.32-0.56-3.74-3.01-2.33-2.40-2.85-2.430.50-0.99

Energy Transfer Partners, L.P. Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DSRI 1.25920.99850.80340.74220.94051.98371.77751.19480.83240.3966
GMI 0.66820.97591.02120.92790.85881.73582.29813.11253.93661.9572
AQI 1.24941.23642.47842.00841.84982.23261.08671.26371.14780.9451
SGI 1.09021.15931.13281.06021.00842.30163.90755.47636.93962.9512
DEPI 1.0821.06121.0550.8870.79121.28371.07810.99531.03120.6489
SGAI -0.51761.03671.37871.54911.64320.89130.46640.32130.25950.3778
LVGI 1.03780.96940.93490.9820.92690.83970.88670.87960.89821.0612
TATA -0.0272-0.04-0.0312-0.0337-0.042-0.0167-0.0195-0.0266-0.0249-0.0471
M-score -2.10-2.43-2.12-2.55-2.570.501.602.954.32-0.99
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