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Magellan Midstream Partners, L.P. (NYSE:MMP)
Beneish M-Score
-2.38 (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.

Magellan Midstream Partners, L.P. has a M-score of -2.38 suggests that the company is not a manipulator.

MMP' s 10-Year Beneish M-Score Range
Min: -4.75   Max: 7.95
Current: -2.38

-4.75
7.95

During the past 13 years, the highest Beneish M-Score of Magellan Midstream Partners, L.P. was 7.95. The lowest was -4.75. And the median was -2.39.


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 Magellan Midstream 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 * 0.7657+0.528 * 0.9381+0.404 * 1.8042+0.892 * 1.2143+0.115 * 0.9403
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.934+4.679 * -0.0352-0.327 * 1.0106
=-2.38

* 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 $106 Mil.
Revenue was 521.601 + 496.446 + 618.606 + 577.438 = $2,214 Mil.
Gross Profit was 297.623 + 262.469 + 347.069 + 295.222 = $1,202 Mil.
Total Current Assets was $402 Mil.
Total Assets was $5,311 Mil.
Property, Plant and Equipment(Net PPE) was $3,992 Mil.
Depreciation, Depletion and Amortization(DDA) was $159 Mil.
Selling, General & Admin. Expense(SGA) was $146 Mil.
Total Current Liabilities was $394 Mil.
Long-Term Debt was $3,004 Mil.
Net Income was 198.62 + 146.26 + 242.554 + 190.007 = $777 Mil.
Non Operating Income was -0.566 + -0.602 + -0.599 + 1.62 = $-0 Mil.
Cash Flow from Operations was 235.959 + 207.282 + 270.074 + 251.459 = $965 Mil.
Accounts Receivable was $115 Mil.
Revenue was 443.835 + 443.912 + 432.421 + 503.195 = $1,823 Mil.
Gross Profit was 220.274 + 251.169 + 206.842 + 250.612 = $929 Mil.
Total Current Assets was $387 Mil.
Total Assets was $4,548 Mil.
Property, Plant and Equipment(Net PPE) was $3,725 Mil.
Depreciation, Depletion and Amortization(DDA) was $139 Mil.
Selling, General & Admin. Expense(SGA) was $129 Mil.
Total Current Liabilities was $642 Mil.
Long-Term Debt was $2,237 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)
=(106.495 / 2214.091) / (114.537 / 1823.363)
=0.04809875 / 0.06281635
=0.7657

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)
=(262.469 / 1823.363) / (297.623 / 2214.091)
=0.50944162 / 0.54305943
=0.9381

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 - (401.98 + 3991.746) / 5311.396) / (1 - (387.281 + 3725.186) / 4548.005)
=0.17277379 / 0.09576463
=1.8042

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
=2214.091 / 1823.363
=1.2143

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))
=(139.112 / (139.112 + 3725.186)) / (158.904 / (158.904 + 3991.746))
=0.03599929 / 0.03828412
=0.9403

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)
=(146.044 / 2214.091) / (128.767 / 1823.363)
=0.06596116 / 0.07062061
=0.934

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)
=((3003.707 + 393.653) / 5311.396) / ((2236.761 + 641.76) / 4548.005)
=0.63963598 / 0.63291949
=1.0106

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
=(777.441 - -0.147 - 964.774) / 5311.396
=-0.0352

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.

Magellan Midstream Partners, L.P. has a M-score of -2.38 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.

Magellan Midstream Partners, L.P. Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 1.07750.75140.88371.12080.64632.32780.82260.89440.97121.2582
GMI 1.20381.32320.93480.93060.77770.89871.20560.92550.94830.8651
AQI 0.81470.91090.86150.96320.73520.70042.24831.08741.2721.8296
SGI 1.43331.63521.07611.07730.92070.83561.53571.12281.01341.0708
DEPI 1.35560.80630.97961.01920.9581.04611.00930.91771.02381.0165
SGAI 0.67340.65521.02021.0041.09681.37210.73850.9221.09411.131
LVGI 0.9290.98191.02891.01730.91371.22290.97191.03781.03521.0115
TATA -0.0586-0.0334-0.0556-0.0063-0.1446-0.0451-0.0309-0.04-0.0474-0.0395
M-score -2.14-2.12-2.88-2.39-3.77-1.92-1.64-2.67-2.66-2.12

Magellan Midstream Partners, L.P. Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 1.02560.08770.97121.09611.153412.35921.25820.69150.84450.7657
GMI 0.95771.02480.94830.8650.84630.81940.86510.89330.94130.9381
AQI 1.10531.2841.2721.42591.67011.72491.82961.89752.02591.8042
SGI 1.14381.05761.01340.9510.91421.03851.07081.21791.25271.2143
DEPI 0.9691.01151.02381.01231.0041.00111.01651.03630.95880.9403
SGAI 0.84151.00721.09411.24391.37981.18051.1310.97480.92660.934
LVGI 0.99861.00221.03521.04221.03171.03271.01151.01761.02561.0106
TATA -0.0598-0.0413-0.0471-0.0612-0.0404-0.0455-0.0396-0.0313-0.0397-0.0352
M-score -2.56-3.33-2.66-2.68-2.497.95-2.13-2.41-2.20-2.38
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