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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 0.98831.0350.94051.13080.42263.39350.88160.93061
GMI 1.27371.20271.05251.06660.97480.46151.33520.81411.0698
AQI 0.850.83430.95970.8231.04510.96231.38941.31543.1088
SGI 1.29581.29771.30191.2651.36870.53571.44351.39131.2659
DEPI 0.94631.17931.13511.04191.17350.91021.04930.912325.6
SGAI 0.77230.84370.80630.79780.77072.01530.77942.00651.5799
LVGI 1.00861.0191.04671.06380.92541.02080.9881.03590.6273
TATA -0.0464-0.0258-0.0329-0.0459-0.02220.0239-0.0294-0.0237-0.0258
M-score -2.33-2.22-2.37-2.36-2.70-1.07-1.95-2.471.38

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
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