Williams Partners LP (FRA:WP8) Beneish M-Score : -2.48 (As of May. 26, 2024)

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What is Williams Partners LP Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

The historical rank and industry rank for Williams Partners LP's Beneish M-Score or its related term are showing as below:

FRA:WP8' s Beneish M-Score Range Over the Past 10 Years
Min: -3.17 Med: -2.43 Max: 4.75
Current: -2.48

During the past 12 years, the highest Beneish M-Score of Williams Partners LP was 4.75. The lowest was -3.17. And the median was -2.43.

Williams Partners LP Beneish M-Score Historical Data

The historical data trend for Williams Partners LP's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Williams Partners LP Beneish M-Score Chart

Williams Partners LP Annual Data

Trend

Dec04

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Beneish M-Score

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3.61

-2.66

-2.80

-2.37

-2.85

Williams Partners LP Quarterly Data
	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14
Beneish M-Score	Get a 7-Day Free Trial															-2.58	-2.85	-2.86	-2.74	-2.48

Competitive Comparison of Williams Partners LP's Beneish M-Score

For the Oil & Gas Midstream subindustry, Williams Partners LP's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Williams Partners LP's Beneish M-Score Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Williams Partners LP's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Williams Partners LP's Beneish M-Score falls into.

Williams Partners LP Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski 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 Williams Partners LP for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 1.485

0.528 * 1.0299

0.404 * 0.8812

0.892 * 0.9073

0.115 * 1.2784

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 2.0563

4.679 * -0.028094

0.327 * 1.1426

-2.48

This Year (Sep14) TTM:

Last Year (Sep13) TTM:

Total Receivables was €476 Mil.
Revenue was 1325.408 + 1189.376 + 1224.039 + 1093.54 = €4,832 Mil.
Gross Profit was 699.176 + 656.512 + 668.052 + 548.23 = €2,572 Mil.
Total Current Assets was €923 Mil.
Total Assets was €20,032 Mil.
Property, Plant and Equipment(Net PPE) was €15,114 Mil.
Depreciation, Depletion and Amortization(DDA) was €589 Mil.
Selling, General, & Admin. Expense(SGA) was €1,117 Mil.
Total Current Liabilities was €1,882 Mil.
Long-Term Debt & Capital Lease Obligation was €8,573 Mil.
Net Income was 168.392 + 170.752 + 254.496 + 122.64 = €716 Mil.
Non Operating Income was 38.024 + 28.704 + 18.798 + 8.76 = €94 Mil.
Cash Flow from Operations was 249.096 + 268.64 + 396.927 + 270.1 = €1,185 Mil.

Total Receivables was €353 Mil.
Revenue was 1210.264 + 1336.354 + 1394.232 + 1385.316 = €5,326 Mil.
Gross Profit was 679.184 + 729.196 + 784.352 + 726.948 = €2,920 Mil.
Total Current Assets was €646 Mil.
Total Assets was €16,181 Mil.
Property, Plant and Equipment(Net PPE) was €11,874 Mil.
Depreciation, Depletion and Amortization(DDA) was €598 Mil.
Selling, General, & Admin. Expense(SGA) was €599 Mil.
Total Current Liabilities was €1,361 Mil.
Long-Term Debt & Capital Lease Obligation was €6,031 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total 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)
	=	(475.688 / 4832.363)	/	(353.056 / 5326.166)
	=	0.098438	/	0.066287
	=	1.485

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)
	=	(2919.68 / 5326.166)	/	(2571.97 / 4832.363)
	=	0.548177	/	0.532239
	=	1.0299

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 Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (923.44 + 15114.152) / 20031.664)	/	(1 - (646.272 + 11873.752) / 16181.484)
	=	0.199388	/	0.226275
	=	0.8812

4. SGI = Sales Growth Index

Ratio of Revenue 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
	=	4832.363	/	5326.166
	=	0.9073

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization 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))
	=	(598.076 / (598.076 + 11873.752))	/	(589.02 / (589.02 + 15114.152))
	=	0.047954	/	0.03751
	=	1.2784

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales 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)
	=	(1116.876 / 4832.363)	/	(598.65 / 5326.166)
	=	0.231124	/	0.112398
	=	2.0563

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 in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((8573.248 + 1881.8) / 20031.664)	/	((6031.124 + 1360.612) / 16181.484)
	=	0.521926	/	0.456802
	=	1.1426

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
	=	(716.28 - 94.286	-	1184.763)	/	20031.664
	=	-0.028094

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Williams Partners LP has a M-score of -2.48 suggests that the company is unlikely to be a manipulator.

Williams Partners LP Beneish M-Score Related Terms

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Williams Partners LP (FRA:WP8) Business Description

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Address

Website

http://www.williamslp.com

Williams Partners LP is a publicly traded Delaware limited partnership formed by The Williams Companies, Inc. (Williams) in 2005. It is an energy infrastructure company. The Company is engaged in natural gas transportation; gathering, treating, and processing; storage; NGL fractionation; olefins production; and oil transportation. The operations of its businesses are located in North America. The Company's operations are divided into four business segments: Northeast G&P â€” this segment includes its natural gas gathering and processing and NGL fractionation businesses in the Marcellus and Utica shale regions, Atlantic-Gulf â€” this segment includes its interstate natural gas pipeline, Transco, and significant natural gas gathering and processing and crude oil production handling and transportation in the Gulf Coast region, West â€” this segment includes its natural gas gathering, processing and treating operations in New Mexico, Colorado, and Wyoming and its interstate natural gas pipeline, Northwest Pipeline, and NGL & Petchem Services â€” this segment includes its NGL and natural gas marketing business, an NGL fractionator and storage facilities near Conway, Kansas. The Company markets NGL products to a wide range of users in the energy and petrochemical industries. The NGL marketing business transports and markets its equity NGLs from the production at its processing plants, and also markets NGLs on behalf of third-party NGL producers, including some of our fee-based processing customers, and the NGL volumes owned by Discovery. The Company also market olefin products to a wide range of users in the energy and petrochemical industries. Its gathering and processing business competes with other midstream companies, interstate and intrastate pipelines, producers and independent gatherers and processors. The Company's operations are subject to federal environmental laws and regulations as well as the state, local, and tribal laws and regulations adopted by the jurisdictions in which they operate.

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