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Sunoco Logistics Partners LP (NYSE:SXL)
Beneish M-Score
-2.54 (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 -2.54 suggests that the company is not a manipulator.

SXL' s Beneish M-Score Range Over the Past 10 Years
Min: -3.52   Max: -1.07
Current: -2.54

-3.52
-1.07

During the past 13 years, the highest Beneish M-Score of Sunoco Logistics Partners LP was -1.07. The lowest was -3.52. And the median was -2.36.


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 * 1.4972+0.528 * 0.6998+0.404 * 1.0681+0.892 * 0.7083+0.115 * 0.9536
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1564+4.679 * -0.0193-0.327 * 1.0237
=-2.54

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $1,456 Mil.
Revenue was 2189 + 2268 + 1777 + 2305 = $8,539 Mil.
Gross Profit was 334 + 277 + 364 + 356 = $1,331 Mil.
Total Current Assets was $2,490 Mil.
Total Assets was $17,271 Mil.
Property, Plant and Equipment(Net PPE) was $11,681 Mil.
Depreciation, Depletion and Amortization(DDA) was $431 Mil.
Selling, General & Admin. Expense(SGA) was $249 Mil.
Total Current Liabilities was $1,889 Mil.
Long-Term Debt was $6,014 Mil.
Net Income was 154 + 202 + 145 + 25 = $526 Mil.
Non Operating Income was 12 + 8 + 7 + 3 = $30 Mil.
Cash Flow from Operations was 153 + 255 + 120 + 301 = $829 Mil.
Accounts Receivable was $1,373 Mil.
Revenue was 2407 + 3202 + 2572 + 3875 = $12,056 Mil.
Gross Profit was 366 + 365 + 254 + 330 = $1,315 Mil.
Total Current Assets was $2,120 Mil.
Total Assets was $14,662 Mil.
Property, Plant and Equipment(Net PPE) was $10,078 Mil.
Depreciation, Depletion and Amortization(DDA) was $354 Mil.
Selling, General & Admin. Expense(SGA) was $304 Mil.
Total Current Liabilities was $1,610 Mil.
Long-Term Debt was $4,944 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)
=(1456 / 8539) / (1373 / 12056)
=0.17051177 / 0.1138852
=1.4972

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)
=(1315 / 12056) / (1331 / 8539)
=0.10907432 / 0.15587305
=0.6998

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 - (2490 + 11681) / 17271) / (1 - (2120 + 10078) / 14662)
=0.17949163 / 0.16805347
=1.0681

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
=8539 / 12056
=0.7083

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))
=(354 / (354 + 10078)) / (431 / (431 + 11681))
=0.03393405 / 0.03558454
=0.9536

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)
=(249 / 8539) / (304 / 12056)
=0.02916032 / 0.02521566
=1.1564

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)
=((6014 + 1889) / 17271) / ((4944 + 1610) / 14662)
=0.45758786 / 0.44700587
=1.0237

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
=(526 - 30 - 829) / 17271
=-0.0193

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 -2.54 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 local exchange's currency.

Sunoco Logistics Partners LP Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.94051.13080.42263.39350.88160.93060.69660.93910.74381.1379
GMI 1.05251.06660.97480.46151.33520.81410.88531.24740.91460.5339
AQI 0.95970.8231.04510.96231.38941.31542.76430.85230.92811.062
SGI 1.30191.2651.36870.53571.44351.39131.20321.26811.08710.5797
DEPI 1.13511.04191.17350.91021.04930.91231.36690.61761.20680.9383
SGAI 0.80630.79780.77072.01530.77942.00651.09570.63681.34971.4668
LVGI 1.04671.06380.92541.02080.9881.03590.51271.18111.09370.9724
TATA -0.0246-0.0346-0.02220.0239-0.0294-0.0237-0.0187-0.0258-0.022-0.0147
M-score -2.34-2.30-2.70-1.07-1.95-2.47-1.83-2.39-2.88-3.10

Sunoco Logistics Partners LP Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 1.06691.06570.74380.56140.78710.74141.13791.31261.30751.4972
GMI 1.3911.18420.91460.76580.6480.55850.53390.50430.5660.6998
AQI 0.87470.8470.92810.97750.92830.98581.0621.07281.10421.0681
SGI 1.27391.19051.08710.91930.8040.65160.57970.59880.60130.7083
DEPI 0.98271.18471.20681.15281.08430.99870.93830.91830.92380.9536
SGAI 0.63320.72751.34971.48251.84562.00221.46681.36091.28091.1564
LVGI 1.18351.13841.09370.93910.93010.93050.97241.03641.03681.0237
TATA -0.0172-0.0083-0.022-0.0305-0.0097-0.022-0.0147-0.0196-0.0273-0.0193
M-score -2.10-2.23-2.88-3.28-3.22-3.52-3.10-2.96-2.94-2.54
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