ETP has been removed from your Stock Email Alerts list.
Please enter Portfolio Name for new portfolio.
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.
During the past 13 years, the highest Beneish M-Score of Energy Transfer Partners LP was 0.67. The lowest was -7.03. And the median was -2.48.
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 * 2.2268||+||0.528 * 0.7186||+||0.404 * 0.8173||+||0.892 * 0.6365||+||0.115 * 1.0929|
|-||0.172 * SGAI||+||4.679 * TATA||-||0.327 * LVGI|
|-||0.172 * 1.151||+||4.679 * -0.0422||-||0.327 * 1.0777|
* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.
|This Year (Dec16) TTM:||Last Year (Dec15) TTM:|
|Accounts Receivable was $3,002 Mil.|
Revenue was 6526 + 5531 + 5289 + 4481 = $21,827 Mil.
Gross Profit was 2771 + 1212 + 1285 + 1165 = $6,433 Mil.
Total Current Assets was $5,729 Mil.
Total Assets was $70,191 Mil.
Property, Plant and Equipment(Net PPE) was $50,917 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,986 Mil.
Selling, General & Admin. Expense(SGA) was $348 Mil.
Total Current Liabilities was $6,203 Mil.
Long-Term Debt was $31,991 Mil.
Net Income was -458 + 74 + 370 + 311 = $297 Mil.
Non Operating Income was 84 + -219 + 65 + 23 = $-47 Mil.
Cash Flow from Operations was 838 + 1039 + 466 + 960 = $3,303 Mil.
|Accounts Receivable was $2,118 Mil.
Revenue was 5825 + 6601 + 11540 + 10326 = $34,292 Mil.
Gross Profit was 3351 + 1141 + 1551 + 1220 = $7,263 Mil.
Total Current Assets was $4,698 Mil.
Total Assets was $65,173 Mil.
Property, Plant and Equipment(Net PPE) was $45,087 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,929 Mil.
Selling, General & Admin. Expense(SGA) was $475 Mil.
Total Current Liabilities was $4,121 Mil.
Long-Term Debt was $28,786 Mil.
1. DSRI = Days Sales in Receivables Index
A large increase in DSR could be indicative of revenue inflation.
|DSRI||=||(Receivables_t / Revenue_t)||/||(Receivables_t-1 / Revenue_t-1)|
|=||(3002 / 21827)||/||(2118 / 34292)|
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.
|=||(GrossProfit_t-1 / Revenue_t-1)||/||(GrossProfit_t / Revenue_t)|
|=||(7263 / 34292)||/||(6433 / 21827)|
3. AQI = Asset Quality Index
AQI is the ratio of asset quality in year t to year t-1.
|AQI||=||(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)||/||(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)|
|=||(1 - (5729 + 50917) / 70191)||/||(1 - (4698 + 45087) / 65173)|
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.
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))|
|=||(1929 / (1929 + 45087))||/||(1986 / (1986 + 50917))|
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)|
|=||(348 / 21827)||/||(475 / 34292)|
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)|
|=||((31991 + 6203) / 70191)||/||((28786 + 4121) / 65173)|
8. TATA = Total Accruals to Total Assets
Total accruals calculated as the change in working capital accounts other than cash less depreciation.
|=||(NetIncome_t - NonOperatingIncome_t||-||CashFlowsfromOperations_t)||/||TotalAssets_t|
|=||(297 - -47||-||3303)||/||70191|
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 -2.14 signals that the company is likely to be a manipulator.
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
Energy Transfer Partners LP Annual Data
Energy Transfer Partners LP Quarterly Data