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Sunoco Logistics Partners LP (NYSE:SXL)
Beneish M-Score
-3.25 (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 -3.25 suggests that the company is not a manipulator.

SXL' s 10-Year Beneish M-Score Range
Min: -3.25   Max: -1.07
Current: -3.25

-3.25
-1.07

During the past 13 years, the highest Beneish M-Score of Sunoco Logistics Partners LP was -1.07. The lowest was -3.25. And the median was -2.30.


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 * 0.5614+0.528 * 0.7796+0.404 * 0.9775+0.892 * 0.9193+0.115 * 1.1528
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.3684+4.679 * -0.0305-0.327 * 0.9391
=-3.25

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
Accounts Receivable was $1,458 Mil.
Revenue was 2572 + 3875 + 4915 + 4821 = $16,183 Mil.
Gross Profit was 263 + 330 + 334 + 304 = $1,231 Mil.
Total Current Assets was $2,170 Mil.
Total Assets was $13,824 Mil.
Property, Plant and Equipment(Net PPE) was $9,210 Mil.
Depreciation, Depletion and Amortization(DDA) was $309 Mil.
Selling, General & Admin. Expense(SGA) was $317 Mil.
Total Current Liabilities was $1,840 Mil.
Long-Term Debt was $4,457 Mil.
Net Income was 36 + -127 + 155 + 156 = $220 Mil.
Non Operating Income was 6 + 7 + 7 + 7 = $27 Mil.
Cash Flow from Operations was -76 + 240 + 105 + 346 = $615 Mil.
Accounts Receivable was $2,825 Mil.
Revenue was 4477 + 4288 + 4528 + 4311 = $17,604 Mil.
Gross Profit was 267 + 248 + 241 + 288 = $1,044 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 $252 Mil.
Total Current Liabilities was $3,200 Mil.
Long-Term Debt was $3,073 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)
=(1458 / 16183) / (2825 / 17604)
=0.09009454 / 0.16047489
=0.5614

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)
=(330 / 17604) / (263 / 16183)
=0.0593047 / 0.07606748
=0.7796

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 - (2170 + 9210) / 13824) / (1 - (3649 + 6945) / 12933)
=0.17679398 / 0.18085518
=0.9775

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
=16183 / 17604
=0.9193

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))
=(270 / (270 + 6945)) / (309 / (309 + 9210))
=0.03742204 / 0.03246139
=1.1528

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)
=(317 / 16183) / (252 / 17604)
=0.01958846 / 0.01431493
=1.3684

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)
=((4457 + 1840) / 13824) / ((3073 + 3200) / 12933)
=0.45551215 / 0.48503827
=0.9391

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
=(220 - 27 - 615) / 13824
=-0.0305

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 -3.25 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 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

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 1.00781.0380.958710.95131.06731.0660.74380.5614
GMI 0.88440.89671.04091.09621.3031.30471.11270.93740.7796
AQI 2.37812.33672.40792.31110.89130.87470.8470.92810.9775
SGI 1.0971.09911.16891.26761.3311.27351.19021.08710.9193
DEPI 1.16541.04310.905225.60.80360.98271.18471.20681.1528
SGAI 0.85380.9440.731.19070.98610.86340.98471.20351.3684
LVGI 0.59480.60360.60850.63491.14341.18351.13841.09370.9391
TATA 0.03660.020.0141-0.0258-0.0171-0.0172-0.0083-0.022-0.0305
M-score -1.54-1.63-1.551.13-2.26-2.18-2.31-2.84-3.25
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