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Sunoco Logistics Partners LP (NYSE:SXL)
Beneish M-Score
-2.27 (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.

Sunoco Logistics Partners LP has a M-score of -2.27 suggests that the company is not a manipulator.

SXL' s 10-Year Beneish M-Score Range
Min: -2.84   Max: -1.14
Current: -2.27

-2.84
-1.14

During the past 13 years, the highest Beneish M-Score of Sunoco Logistics Partners LP was -1.14. The lowest was -2.84. And the median was -2.28.


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 Sunoco Logistics 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 * 1.0681+0.528 * 1.2701+0.404 * 0.8747+0.892 * 1.2725+0.115 * 0.7046
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0492+4.679 * -0.0172-0.327 * 1.1835
=-2.27

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was $2,808 Mil.
Revenue was 4821 + 4477 + 4288 + 4528 = $18,114 Mil.
Gross Profit was 304 + 267 + 248 + 241 = $1,060 Mil.
Total Current Assets was $3,517 Mil.
Total Assets was $13,454 Mil.
Property, Plant and Equipment(Net PPE) was $7,536 Mil.
Depreciation, Depletion and Amortization(DDA) was $280 Mil.
Selling, General & Admin. Expense(SGA) was $243 Mil.
Total Current Liabilities was $3,261 Mil.
Long-Term Debt was $3,368 Mil.
Net Income was 156 + 107 + 102 + 78 = $443 Mil.
Non Operating Income was 7 + 4 + 5 + 7 = $23 Mil.
Cash Flow from Operations was 346 + -125 + 288 + 143 = $652 Mil.
Accounts Receivable was $2,066 Mil.
Revenue was 4311 + 3512 + 3194 + 3218 = $14,235 Mil.
Gross Profit was 288 + 288 + 261 + 221 = $1,058 Mil.
Total Current Assets was $3,127 Mil.
Total Assets was $11,400 Mil.
Property, Plant and Equipment(Net PPE) was $5,947 Mil.
Depreciation, Depletion and Amortization(DDA) was $154 Mil.
Selling, General & Admin. Expense(SGA) was $182 Mil.
Total Current Liabilities was $2,432 Mil.
Long-Term Debt was $2,314 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)
=(2808 / 18114) / (2066 / 14235)
=0.15501822 / 0.14513523
=1.0681

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)
=(267 / 14235) / (304 / 18114)
=0.07432385 / 0.05851827
=1.2701

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 - (3517 + 7536) / 13454) / (1 - (3127 + 5947) / 11400)
=0.17845994 / 0.20403509
=0.8747

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
=18114 / 14235
=1.2725

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))
=(154 / (154 + 5947)) / (280 / (280 + 7536))
=0.02524176 / 0.03582395
=0.7046

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)
=(243 / 18114) / (182 / 14235)
=0.01341504 / 0.01278539
=1.0492

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)
=((3368 + 3261) / 13454) / ((2314 + 2432) / 11400)
=0.49271592 / 0.41631579
=1.1835

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
=(443 - 23 - 652) / 13454
=-0.0172

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.

Sunoco Logistics Partners LP has a M-score of -2.27 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.

Sunoco Logistics Partners LP Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 0.98831.0350.94051.13080.42413.40370.87590.93060.6784
GMI 1.27371.20271.05251.06660.97480.46211.33320.81410.8771
AQI 0.850.83430.95970.8231.04510.9651.38561.31543.1088
SGI 1.29581.29771.30191.2651.36870.53561.44351.39132.1229
DEPI 0.94631.17931.13511.04191.17350.91761.04090.91230.7701
SGAI 0.77230.84370.80630.79780.77071.99350.78792.00651.5702
LVGI 1.00861.0191.04671.06380.92541.02080.9881.03590.6273
TATA -0.0464-0.0258-0.0329-0.0459-0.02220.0069-0.0294-0.0237-0.0258
M-score -2.33-2.22-2.37-2.36-2.70-1.14-1.96-2.47-1.11

Sunoco Logistics Partners LP Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 0.71660.64370.69381.00681.03770.960.95721.0681
GMI 0.80110.8640.83980.90790.92791.01681.27211.2701
AQI 1.54211.63861.00922.37812.33672.40790.89130.8747
SGI 1.43391.47161.36361.09811.09931.16731.32941.2725
DEPI 0.90030.84130.88691.81891.45481.18450.52030.7046
SGAI 1.94741.81311.84950.67970.77730.86061.23891.0492
LVGI 1.00260.95860.94140.59480.60360.60851.14341.1835
TATA -0.0406-0.0601-0.03360.0380.0210.0141-0.0171-0.0172
M-score -2.60-2.63-2.82-1.42-1.54-1.55-2.35-2.27
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