NGL has been removed from your Stock Email Alerts list.
Please enter Portfolio Name for new portfolio.
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.
During the past 8 years, the highest Beneish M-Score of NGL Energy Partners LP was 1.85. The lowest was -3.96. And the median was -1.48.
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 NGL Energy 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 * 1.0261||+||0.528 * 0.7342||+||0.404 * 1.0025||+||0.892 * 0.6545||+||0.115 * 0.9668|
|-||0.172 * SGAI||+||4.679 * TATA||-||0.327 * LVGI|
|-||0.172 * 1.2698||+||4.679 * -0.0698||-||0.327 * 1.0192|
|This Year (Jun16) TTM:||Last Year (Jun15) TTM:|
|Accounts Receivable was $608 Mil.|
Revenue was 2721.97 + 2325.44 + 2685.006 + 3193.195 = $10,926 Mil.
Gross Profit was 155.53 + 248.28 + 251.506 + 187.369 = $843 Mil.
Total Current Assets was $1,269 Mil.
Total Assets was $6,003 Mil.
Property, Plant and Equipment(Net PPE) was $1,733 Mil.
Depreciation, Depletion and Amortization(DDA) was $238 Mil.
Selling, General & Admin. Expense(SGA) was $487 Mil.
Total Current Liabilities was $870 Mil.
Long-Term Debt was $2,867 Mil.
Net Income was 176.92 + -340.063 + 23.481 + -27.043 = $-167 Mil.
Non Operating Income was 19.753 + 30.697 + 2.297 + 1.564 = $54 Mil.
Cash Flow from Operations was -71.422 + 58.361 + 119.039 + 92.266 = $198 Mil.
|Accounts Receivable was $905 Mil.
Revenue was 3538.469 + 3220.771 + 4552.146 + 5380.526 = $16,692 Mil.
Gross Profit was 215.918 + 287.75 + 240.478 + 201.061 = $945 Mil.
Total Current Assets was $1,587 Mil.
Total Assets was $6,643 Mil.
Property, Plant and Equipment(Net PPE) was $1,744 Mil.
Depreciation, Depletion and Amortization(DDA) was $231 Mil.
Selling, General & Admin. Expense(SGA) was $586 Mil.
Total Current Liabilities was $1,089 Mil.
Long-Term Debt was $2,968 Mil.
1. DSRI = Days Sales in Receivables Index
A large increase in DSR could be indicative of revenue inflation.
|DSRI||=||(Receivables_t / Revenue_t)||/||(Receivables_t-1 / Revenue_t-1)|
|=||(607.973 / 10925.611)||/||(905.196 / 16691.912)|
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.
|=||(GrossProfit_t-1 / Revenue_t-1)||/||(GrossProfit_t / Revenue_t)|
|=||(945.207 / 16691.912)||/||(842.685 / 10925.611)|
3. AQI = Asset Quality Index
AQI is the ratio of asset quality in year t to year t-1.
|AQI||=||(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)||/||(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)|
|=||(1 - (1269.097 + 1733.393) / 6002.782)||/||(1 - (1587.395 + 1743.584) / 6642.651)|
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.
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))|
|=||(230.865 / (230.865 + 1743.584))||/||(238.487 / (238.487 + 1733.393))|
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)|
|=||(487.307 / 10925.611)||/||(586.323 / 16691.912)|
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)|
|=||((2866.85 + 869.645) / 6002.782)||/||((2968.069 + 1088.7) / 6642.651)|
8. TATA = Total Accruals to Total Assets
Total accruals calculated as the change in working capital accounts other than cash less depreciation.
|=||(NetIncome_t - NonOperatingIncome_t||-||CashFlowsfromOperations_t)||/||TotalAssets_t|
|=||(-166.705 - 54.311||-||198.244)||/||6002.782|
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.
NGL Energy Partners LP has a M-score of -3.29 suggests that the company will not be a manipulator.
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
NGL Energy Partners LP Annual Data
NGL Energy Partners LP Quarterly Data