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Energy Transfer Partners LP (NYSE:ETP)
Beneish M-Score
-2.43 (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 -2.43 suggests that the company is not a manipulator.

ETP' s 10-Year Beneish M-Score Range
Min: -40.31   Max: 4.39
Current: -2.43

-40.31
4.39

During the past 13 years, the highest Beneish M-Score of Energy Transfer Partners LP was 4.39. The lowest was -40.31. And the median was -2.21.


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 * 1.1265+0.528 * 1.0018+0.404 * 0.9494+0.892 * 1.1242+0.115 * 1.0422
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.7004+4.679 * -0.0428-0.327 * 1.0284
=-2.43

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $4,164 Mil.
Revenue was 13618 + 13029 + 12232 + 12032 = $50,911 Mil.
Gross Profit was 1093 + 1085 + 1047 + 918 = $4,143 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 $1,091 Mil.
Selling, General & Admin. Expense(SGA) was $422 Mil.
Total Current Liabilities was $7,621 Mil.
Long-Term Debt was $17,540 Mil.
Net Income was 342 + 471 + 415 + -541 = $687 Mil.
Non Operating Income was 43 + 90 + 144 + -136 = $141 Mil.
Cash Flow from Operations was 421 + 891 + 682 + 631 = $2,625 Mil.
Accounts Receivable was $3,288 Mil.
Revenue was 11902 + 11551 + 10854 + 10981 = $45,288 Mil.
Gross Profit was 901 + 995 + 933 + 863 = $3,692 Mil.
Total Current Assets was $6,582 Mil.
Total Assets was $43,556 Mil.
Property, Plant and Equipment(Net PPE) was $25,090 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,001 Mil.
Selling, General & Admin. Expense(SGA) was $536 Mil.
Total Current Liabilities was $5,588 Mil.
Long-Term Debt was $16,352 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)
=(4164 / 50911) / (3288 / 45288)
=0.08178979 / 0.07260201
=1.1265

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)
=(1085 / 45288) / (1093 / 50911)
=0.0815227 / 0.08137731
=1.0018

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 - (7444 + 28545) / 48571) / (1 - (6582 + 25090) / 43556)
=0.25904346 / 0.27284415
=0.9494

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
=50911 / 45288
=1.1242

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))
=(1001 / (1001 + 25090)) / (1091 / (1091 + 28545))
=0.03836572 / 0.03681334
=1.0422

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)
=(422 / 50911) / (536 / 45288)
=0.00828897 / 0.01183536
=0.7004

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)
=((17540 + 7621) / 48571) / ((16352 + 5588) / 43556)
=0.51802516 / 0.50371935
=1.0284

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
=(687 - 141 - 2625) / 48571
=-0.0428

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 -2.43 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

Aug04Aug05Aug06Aug07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 1.76751.24390.62351.10260.69061.75710.82180.96122.03710.3911
GMI 2.60161.08390.46170.65090.99550.85061.11160.97311.74081.9572
AQI 0.61460.65781.28960.94320.71621.46950.66111.23562.2340.9451
SGI 4.34362.48521.2740.86421.36830.58291.08631.16412.29212.9512
DEPI 2.32370.90611.10851.09521.02650.89431.02980.99951.3630.6489
SGAI 0.54350.76186.63741.53780.20131.53640.93381.03030.89680.3778
LVGI 0.91111.04750.99980.89331.07880.93660.99990.96940.83971.0612
TATA -0.0380.0428-0.0052-0.0565-0.0389-0.0091-0.0471-0.04-0.0167-0.0471
M-score 1.98-0.81-3.73-3.03-2.62-2.17-2.85-2.470.55-0.99

Energy Transfer Partners LP Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.79140.8622.03711.90191.28750.87720.39110.59360.92531.1265
GMI 0.74140.61431.74082.32273.1523.99751.95721.47231.20311.0018
AQI 2.00841.84982.2341.08671.26371.14780.94510.9280.79510.9494
SGI 1.06481.00852.29213.89055.45236.92432.95121.89111.39811.1242
DEPI 0.84150.82051.3631.14411.04911.04310.64890.7810.92651.0422
SGAI -1.8074-1.01430.89680.44730.30190.23780.37780.49390.58840.7004
LVGI 0.9820.92690.83970.88670.87960.89821.06121.09981.06631.0284
TATA -0.0337-0.0419-0.0167-0.0195-0.0266-0.0249-0.0471-0.054-0.0521-0.0428
M-score -2.03-2.310.551.723.044.39-0.99-2.06-2.37-2.43
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