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Sunoco Logistics Partners LP (NYSE:SXL)
Beneish M-Score
0.00 (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 -2.84 suggests that the company is not a manipulator.

SXL' s 10-Year Beneish M-Score Range
Min: -2.73   Max: -1.07
Current: 0

-2.73
-1.07

During the past 13 years, the highest Beneish M-Score of Sunoco Logistics Partners LP was -1.07. The lowest was -2.73. And the median was -2.35.


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 * 0.7438+0.528 * 0.9374+0.404 * 0.9281+0.892 * 1.0871+0.115 * 1.2068
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.2035+4.679 * -0.022-0.327 * 1.0937
=-2.84

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
Accounts Receivable was $1,766 Mil.
Revenue was 3875 + 4915 + 4821 + 4477 = $18,088 Mil.
Gross Profit was 330 + 334 + 304 + 267 = $1,235 Mil.
Total Current Assets was $2,349 Mil.
Total Assets was $13,644 Mil.
Property, Plant and Equipment(Net PPE) was $8,849 Mil.
Depreciation, Depletion and Amortization(DDA) was $296 Mil.
Selling, General & Admin. Expense(SGA) was $314 Mil.
Total Current Liabilities was $2,311 Mil.
Long-Term Debt was $4,260 Mil.
Net Income was -127 + 155 + 156 + 107 = $291 Mil.
Non Operating Income was 7 + 7 + 7 + 4 = $25 Mil.
Cash Flow from Operations was 240 + 105 + 346 + -125 = $566 Mil.
Accounts Receivable was $2,184 Mil.
Revenue was 4288 + 4528 + 4311 + 3512 = $16,639 Mil.
Gross Profit was 248 + 241 + 288 + 288 = $1,065 Mil.
Total Current Assets was $3,080 Mil.
Total Assets was $11,897 Mil.
Property, Plant and Equipment(Net PPE) was $6,519 Mil.
Depreciation, Depletion and Amortization(DDA) was $265 Mil.
Selling, General & Admin. Expense(SGA) was $240 Mil.
Total Current Liabilities was $2,736 Mil.
Long-Term Debt was $2,503 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)
=(1766 / 18088) / (2184 / 16639)
=0.09763379 / 0.13125789
=0.7438

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)
=(334 / 16639) / (330 / 18088)
=0.06400625 / 0.06827731
=0.9374

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 - (2349 + 8849) / 13644) / (1 - (3080 + 6519) / 11897)
=0.17927294 / 0.19315794
=0.9281

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
=18088 / 16639
=1.0871

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))
=(265 / (265 + 6519)) / (296 / (296 + 8849))
=0.0390625 / 0.03236741
=1.2068

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)
=(314 / 18088) / (240 / 16639)
=0.01735958 / 0.01442394
=1.2035

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)
=((4260 + 2311) / 13644) / ((2503 + 2736) / 11897)
=0.48160364 / 0.44036312
=1.0937

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
=(291 - 25 - 566) / 13644
=-0.022

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 -2.84 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 1.0350.94051.13080.42263.39350.88160.930610.7438
GMI 1.20271.05251.06660.97480.46151.33520.81411.06980.9374
AQI 0.83430.95970.8231.04510.96231.38941.31543.09940.9281
SGI 1.29771.30191.2651.36870.53571.44351.39131.26591.0871
DEPI 1.17931.13511.04191.17350.91021.04930.912325.61.2068
SGAI 0.84370.80630.79780.77072.01530.77942.00651.57991.2035
LVGI 1.0191.04671.06380.92541.02080.9881.03590.62731.0937
TATA -0.0258-0.0329-0.0459-0.02220.0239-0.0294-0.0237-0.0258-0.022
M-score -2.22-2.37-2.36-2.70-1.07-1.95-2.471.37-2.84

Sunoco Logistics Partners LP Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 0.69471.00781.0380.958710.95131.06731.0660.7438
GMI 0.81850.88440.89671.04091.09621.3031.30471.11270.9374
AQI 1.00922.37812.33672.40792.31110.89130.87470.8470.9281
SGI 1.36181.0971.09911.16891.26761.3311.27351.19021.0871
DEPI 0.88551.16541.04310.905225.60.80360.98271.18471.2068
SGAI 2.18610.85380.9440.731.19070.98610.86340.98471.2035
LVGI 0.94140.59480.60360.60850.63491.14341.18351.13841.0937
TATA -0.03690.03660.020.0141-0.0258-0.0171-0.0172-0.0083-0.022
M-score -2.90-1.54-1.63-1.551.13-2.26-2.18-2.31-2.84
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