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Sunoco Logistics Partners (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 has a M-score of -2.25 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 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 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 * 0.9561+0.528 * 1.3349+0.404 * 0.8913+0.892 * 1.331+0.115 * 0.5248
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8883+4.679 * -0.0171-0.327 * 1.1434
=-2.25

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

This Year (Mar14) TTM:Last Year (Mar13) TTM:
Accounts Receivable was $2,839 Mil.
Revenue was 4477 + 4288 + 4528 + 4311 = $17,604 Mil.
Gross Profit was 267 + 248 + 241 + 263 = $1,019 Mil.
Total Current Assets was $3,649 Mil.
Total Assets was $12,933 Mil.
Property, Plant and Equipment(Net PPE) was $6,945 Mil.
Depreciation, Depletion and Amortization(DDA) was $270 Mil.
Selling, General & Admin. Expense(SGA) was $227 Mil.
Total Current Liabilities was $3,200 Mil.
Long-Term Debt was $3,073 Mil.
Net Income was 107 + 102 + 78 + 143 = $430 Mil.
Non Operating Income was 4 + 5 + 7 + 7 = $23 Mil.
Cash Flow from Operations was -125 + 288 + 143 + 322 = $628 Mil.
Accounts Receivable was $2,231 Mil.
Revenue was 3512 + 3194 + 3207 + 3313 = $13,226 Mil.
Gross Profit was 288 + 261 + 249 + 224 = $1,022 Mil.
Total Current Assets was $3,357 Mil.
Total Assets was $11,414 Mil.
Property, Plant and Equipment(Net PPE) was $5,741 Mil.
Depreciation, Depletion and Amortization(DDA) was $115 Mil.
Selling, General & Admin. Expense(SGA) was $192 Mil.
Total Current Liabilities was $2,524 Mil.
Long-Term Debt was $2,318 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)
=(2839 / 17604) / (2231 / 13226)
=0.16127017 / 0.1686829
=0.9561

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)
=(248 / 13226) / (267 / 17604)
=0.07727204 / 0.05788457
=1.3349

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 - (3649 + 6945) / 12933) / (1 - (3357 + 5741) / 11414)
=0.18085518 / 0.20290871
=0.8913

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
=17604 / 13226
=1.331

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))
=(115 / (115 + 5741)) / (270 / (270 + 6945))
=0.01963798 / 0.03742204
=0.5248

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)
=(227 / 17604) / (192 / 13226)
=0.0128948 / 0.01451686
=0.8883

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)
=((3073 + 3200) / 12933) / ((2318 + 2524) / 11414)
=0.48503827 / 0.42421588
=1.1434

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
=(430 - 23 - 628) / 12933
=-0.0171

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 has a M-score of -2.25 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 Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 0.98831.0350.94051.13080.42413.38170.88160.93060.6784
GMI 1.27371.20271.05251.06660.97480.46151.33520.81410.8771
AQI 0.850.83430.95970.8231.04510.96231.38941.31543.1088
SGI 1.29581.29771.30191.2651.36870.53571.44351.39132.1229
DEPI 0.94631.17931.13511.04191.17350.91021.04930.91230.7701
SGAI 0.77230.84370.80630.79780.77072.01530.77942.00651.5702
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 -2.33-2.22-2.37-2.36-2.70-1.08-1.95-2.47-1.11

Sunoco Logistics Partners Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
DSRI 0.93060.71670.6440.69471.00781.0380.95870.9561
GMI 0.81410.80210.86820.81850.88440.91781.06571.3349
AQI 1.31541.54211.63861.00922.37812.33672.40790.8913
SGI 1.39131.43371.47081.36181.0971.09911.16891.331
DEPI 0.91230.90370.83550.88551.78471.45481.18450.5248
SGAI 2.00651.95881.83312.18610.85380.83730.64740.8883
LVGI 1.03591.00260.95860.94140.59480.60360.60851.1434
TATA -0.0237-0.041-0.0615-0.03690.03660.020.0141-0.0171
M-score -2.47-2.61-2.64-2.90-1.47-1.56-1.49-2.25
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