Switch to:

Warning: Division by zero in /home/gurufocu/cache/tpl-default-mscore-aa5c6c6c4b80de9263daf2b15e3aa3e6.php on line 208

Warning: Division by zero in /home/gurufocu/cache/tpl-default-mscore-aa5c6c6c4b80de9263daf2b15e3aa3e6.php on line 218
Sunoco Logistics Partners LP (NYSE:SXL)
Beneish M-Score
-2.31 (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 -2.31 suggests that the company is not a manipulator.

SXL' s 10-Year Beneish M-Score Range
Min: -2.9   Max: -1.07
Current: -2.31

-2.9
-1.07

During the past 13 years, the highest Beneish M-Score of Sunoco Logistics Partners LP was -1.07. The lowest was -2.90. And the median was -2.29.


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 * 1.066+0.528 * 1.1127+0.404 * 0.847+0.892 * 1.1902+0.115 * 1.1847
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9847+4.679 * -0.0083-0.327 * 1.1384
=-2.31

* 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 $2,842 Mil.
Revenue was 4915 + 4821 + 4477 + 4288 = $18,501 Mil.
Gross Profit was 334 + 304 + 267 + 248 = $1,153 Mil.
Total Current Assets was $3,508 Mil.
Total Assets was $14,161 Mil.
Property, Plant and Equipment(Net PPE) was $8,239 Mil.
Depreciation, Depletion and Amortization(DDA) was $289 Mil.
Selling, General & Admin. Expense(SGA) was $259 Mil.
Total Current Liabilities was $3,163 Mil.
Long-Term Debt was $3,640 Mil.
Net Income was 155 + 156 + 107 + 102 = $520 Mil.
Non Operating Income was 7 + 7 + 4 + 5 = $23 Mil.
Cash Flow from Operations was 105 + 346 + -125 + 288 = $614 Mil.
Accounts Receivable was $2,240 Mil.
Revenue was 4528 + 4311 + 3512 + 3194 = $15,545 Mil.
Gross Profit was 241 + 288 + 288 + 261 = $1,078 Mil.
Total Current Assets was $2,992 Mil.
Total Assets was $11,498 Mil.
Property, Plant and Equipment(Net PPE) was $6,192 Mil.
Depreciation, Depletion and Amortization(DDA) was $259 Mil.
Selling, General & Admin. Expense(SGA) was $221 Mil.
Total Current Liabilities was $2,543 Mil.
Long-Term Debt was $2,309 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)
=(2842 / 18501) / (2240 / 15545)
=0.15361332 / 0.14409778
=1.066

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)
=(304 / 15545) / (334 / 18501)
=0.06934706 / 0.06232096
=1.1127

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 - (3508 + 8239) / 14161) / (1 - (2992 + 6192) / 11498)
=0.17046819 / 0.20125239
=0.847

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
=18501 / 15545
=1.1902

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))
=(259 / (259 + 6192)) / (289 / (289 + 8239))
=0.04014881 / 0.03388837
=1.1847

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)
=(259 / 18501) / (221 / 15545)
=0.01399924 / 0.01421679
=0.9847

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)
=((3640 + 3163) / 14161) / ((2309 + 2543) / 11498)
=0.48040393 / 0.42198643
=1.1384

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
=(520 - 23 - 614) / 14161
=-0.0083

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 -2.31 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 0.98831.0350.94051.13080.42263.39350.88160.9306
GMI 1.27371.20271.05251.06660.97480.46151.33520.8141
AQI 0.850.83430.95970.8231.04510.96231.38941.3154
SGI 1.29581.29771.30191.2651.36870.53571.44351.3913
DEPI 0.94631.17931.13511.04191.17350.91021.04930.9123
SGAI 0.77230.84370.80630.79780.77072.01530.77942.0065
LVGI 1.00861.0191.04671.06380.92541.02080.9881.0359
TATA -0.0464-0.0258-0.0329-0.0459-0.02220.0239-0.0294-0.0237
M-score -2.33-2.22-2.37-2.36-2.70-1.07-1.95-2.47

Sunoco Logistics Partners LP Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.6440.69471.00781.0380.958710.95131.06731.066
GMI 0.86820.81850.88440.89671.04091.09621.3031.30471.1127
AQI 1.63861.00922.37812.33672.40792.31810.89130.87470.847
SGI 1.47081.36181.0971.09911.16891.26761.3311.27351.1902
DEPI 0.83550.88551.16541.04310.905225.60.80360.98271.1847
SGAI 1.83312.18610.85380.9440.731.19070.98610.86340.9847
LVGI 0.95860.94140.59480.60360.60850.63491.14341.18351.1384
TATA -0.0615-0.03690.03660.020.0141-0.0258-0.0171-0.0172-0.0083
M-score -2.64-2.90-1.54-1.63-1.551.14-2.26-2.18-2.31
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK