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Magellan Midstream Partners, L.P. (NYSE:MMP)
Beneish M-Score
-2.69 (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 -2.69 suggests that the company is not a manipulator.

MMP' s 10-Year Beneish M-Score Range
Min: -4.75   Max: 7.94
Current: -2.69

-4.75
7.94

During the past 13 years, the highest Beneish M-Score of Magellan Midstream Partners, L.P. was 7.94. The lowest was -4.75. And the median was -2.41.


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 * 0.9013+0.528 * 0.9788+0.404 * 1.1207+0.892 * 1.0592+0.115 * 0.9726
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.023+4.679 * -0.0422-0.327 * 1.0032
=-2.69

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
Accounts Receivable was $97 Mil.
Revenue was 522.09 + 667.07 + 521.601 + 496.446 = $2,207 Mil.
Gross Profit was 287.416 + 357.705 + 297.623 + 262.469 = $1,205 Mil.
Total Current Assets was $396 Mil.
Total Assets was $5,605 Mil.
Property, Plant and Equipment(Net PPE) was $4,400 Mil.
Depreciation, Depletion and Amortization(DDA) was $166 Mil.
Selling, General & Admin. Expense(SGA) was $149 Mil.
Total Current Liabilities was $419 Mil.
Long-Term Debt was $3,184 Mil.
Net Income was 183.636 + 252.085 + 198.62 + 146.26 = $781 Mil.
Non Operating Income was -0.866 + -9.139 + -0.566 + -0.602 = $-11 Mil.
Cash Flow from Operations was 191.083 + 393.986 + 235.959 + 207.282 = $1,028 Mil.
Accounts Receivable was $101 Mil.
Revenue was 618.606 + 577.438 + 443.835 + 443.912 = $2,084 Mil.
Gross Profit was 347.069 + 295.222 + 220.274 + 251.169 = $1,114 Mil.
Total Current Assets was $567 Mil.
Total Assets was $5,144 Mil.
Property, Plant and Equipment(Net PPE) was $3,914 Mil.
Depreciation, Depletion and Amortization(DDA) was $143 Mil.
Selling, General & Admin. Expense(SGA) was $137 Mil.
Total Current Liabilities was $604 Mil.
Long-Term Debt was $2,691 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)
=(96.7 / 2207.207) / (101.292 / 2083.791)
=0.04381102 / 0.04860948
=0.9013

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)
=(357.705 / 2083.791) / (287.416 / 2207.207)
=0.53447491 / 0.54603533
=0.9788

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 - (395.65 + 4399.594) / 5605.117) / (1 - (567.042 + 3913.595) / 5143.782)
=0.14448815 / 0.12892168
=1.1207

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
=2207.207 / 2083.791
=1.0592

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))
=(143.409 / (143.409 + 3913.595)) / (165.927 / (165.927 + 4399.594))
=0.0353485 / 0.0363435
=0.9726

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)
=(148.851 / 2207.207) / (137.375 / 2083.791)
=0.06743862 / 0.06592552
=1.023

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)
=((3183.75 + 418.887) / 5605.117) / ((2691.288 + 604.15) / 5143.782)
=0.64274073 / 0.6406644
=1.0032

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
=(780.601 - -11.173 - 1028.31) / 5605.117
=-0.0422

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 -2.69 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 0.75140.88371.12080.64632.32780.82260.7971.23731.04990.5983
GMI 1.32320.93480.93060.77770.89871.20560.92550.94830.86510.9344
AQI 0.91090.86150.96320.73520.70042.24831.08741.2721.82961.3512
SGI 1.63521.07611.07730.92070.83561.53571.12281.01341.07081.214
DEPI 0.80630.97961.01920.9581.03471.03320.91961.00911.01650.9731
SGAI 0.65521.02021.0041.09681.37210.73850.9221.09411.1310.9219
LVGI 0.98191.02891.01730.91371.22290.97191.03781.03521.01151.0004
TATA -0.0334-0.0556-0.0063-0.1446-0.0455-0.0301-0.0405-0.0474-0.0391-0.0466
M-score -2.12-2.88-2.39-3.77-1.93-1.64-2.76-2.42-2.31-2.76

Magellan Midstream Partners, L.P. Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 1.23731.09611.153412.35921.04990.69150.84450.76570.59830.9013
GMI 0.94830.8650.84630.81940.86510.89330.94130.93810.93440.9788
AQI 1.2721.42591.67011.72491.82961.89752.02591.80421.35121.1207
SGI 1.01340.9510.91421.03851.07081.21791.25271.21431.2141.0592
DEPI 1.00911.01280.99580.99621.01651.02460.95880.94030.97310.9726
SGAI 1.09411.24391.37981.18051.1310.97480.92660.9340.92191.023
LVGI 1.03521.04221.03171.03271.01151.01761.02561.01061.00041.0032
TATA -0.0475-0.0606-0.0399-0.0468-0.0391-0.0315-0.0398-0.0339-0.0466-0.0422
M-score -2.42-2.67-2.497.94-2.31-2.41-2.20-2.37-2.76-2.69
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