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Energy Transfer Partners LP (NYSE:ETP)
Beneish M-Score
-2.85 (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 -2.85 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: -2.85

-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 * 1.5661+0.528 * 0.5504+0.404 * 0.8485+0.892 * 0.539+0.115 * 1.3946
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.432+4.679 * -0.0334-0.327 * 0.9991
=-2.85

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $2,080 Mil.
Revenue was 4481 + 5825 + 6601 + 11540 = $28,447 Mil.
Gross Profit was 1165 + 1090 + 1141 + 1551 = $4,947 Mil.
Total Current Assets was $4,759 Mil.
Total Assets was $64,315 Mil.
Property, Plant and Equipment(Net PPE) was $45,787 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,920 Mil.
Selling, General & Admin. Expense(SGA) was $423 Mil.
Total Current Liabilities was $4,911 Mil.
Long-Term Debt was $26,992 Mil.
Net Income was 311 + 46 + 417 + 654 = $1,428 Mil.
Non Operating Income was 23 + 43 + 172 + 228 = $466 Mil.
Cash Flow from Operations was 960 + 754 + 860 + 533 = $3,107 Mil.
Accounts Receivable was $2,464 Mil.
Revenue was 10326 + 13427 + 14933 + 14088 = $52,774 Mil.
Gross Profit was 1220 + 1140 + 1372 + 1319 = $5,051 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 $1,882 Mil.
Selling, General & Admin. Expense(SGA) was $548 Mil.
Total Current Liabilities was $4,707 Mil.
Long-Term Debt was $20,430 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)
=(2080 / 28447) / (2464 / 52774)
=0.07311843 / 0.04668966
=1.5661

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)
=(1090 / 52774) / (1165 / 28447)
=0.09571001 / 0.17390234
=0.5504

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 - (4759 + 45787) / 64315) / (1 - (6206 + 31649) / 50629)
=0.21408692 / 0.25230599
=0.8485

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
=28447 / 52774
=0.539

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))
=(1882 / (1882 + 31649)) / (1920 / (1920 + 45787))
=0.05612717 / 0.04024567
=1.3946

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)
=(423 / 28447) / (548 / 52774)
=0.01486976 / 0.0103839
=1.432

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)
=((26992 + 4911) / 64315) / ((20430 + 4707) / 50629)
=0.49604291 / 0.4964941
=0.9991

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
=(1428 - 466 - 3107) / 64315
=-0.0334

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 -2.85 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 0.62351.10260.69061.75710.80.90152.23120.39110.90610.9404
GMI 0.46170.65090.99550.85061.11160.97311.70581.99741.03880.5336
AQI 1.28630.94320.74421.41430.66111.23642.23260.94511.06720.8396
SGI 1.2740.86421.36830.58291.08631.16412.29212.95121.1040.6703
DEPI 1.10851.09521.02140.89881.02980.99951.3630.64891.35530.6879
SGAI 6.63741.53780.20131.53640.93381.03031.0020.33820.70411.8796
LVGI 1.00120.89331.07880.93660.99990.96940.83971.06120.97531.0048
TATA -0.0052-0.0565-0.0389-0.0091-0.0471-0.04-0.0167-0.0471-0.0232-0.0273
M-score -3.73-3.03-2.61-2.19-2.87-2.530.69-0.96-2.43-3.46

Energy Transfer Partners LP Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 0.3750.56970.87121.03750.88420.58630.82740.76471.00511.5661
GMI 1.87061.41491.11950.90480.95090.87910.82010.74670.60950.5504
AQI 0.94510.9280.79510.94941.06721.00511.08510.96280.83960.8485
SGI 3.07831.97021.48491.22071.13131.06160.96130.75780.62710.539
DEPI 0.52180.62880.63010.66851.15650.8631.35891.34141.00251.3946
SGAI 0.36160.45440.57530.69340.90051.2321.46681.56771.54261.432
LVGI 1.06121.09981.06631.02840.97530.91380.94380.9611.00480.9991
TATA -0.0543-0.0613-0.0645-0.0597-0.0339-0.0398-0.0204-0.025-0.0273-0.0334
M-score -0.98-2.09-2.48-2.59-2.58-3.08-2.85-3.22-3.30-2.85
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