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Sunoco Logistics Partners LP (NYSE:SXL)
Beneish M-Score
-2.98 (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 -2.98 suggests that the company is not a manipulator.

SXL' s Beneish M-Score Range Over the Past 10 Years
Min: -3.85   Max: -1.07
Current: -2.98

-3.85
-1.07

During the past 13 years, the highest Beneish M-Score of Sunoco Logistics Partners LP was -1.07. The lowest was -3.85. And the median was -2.34.


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 * 1.3075+0.528 * 0.5537+0.404 * 1.1042+0.892 * 0.6013+0.115 * 0.9238
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.4819+4.679 * -0.0273-0.327 * 1.0368
=-2.98

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $1,397 Mil.
Revenue was 2268 + 1777 + 2305 + 2407 = $8,757 Mil.
Gross Profit was 277 + 364 + 476 + 325 = $1,442 Mil.
Total Current Assets was $2,376 Mil.
Total Assets was $16,799 Mil.
Property, Plant and Equipment(Net PPE) was $11,350 Mil.
Depreciation, Depletion and Amortization(DDA) was $421 Mil.
Selling, General & Admin. Expense(SGA) was $327 Mil.
Total Current Liabilities was $1,870 Mil.
Long-Term Debt was $6,112 Mil.
Net Income was 202 + 145 + 25 + 56 = $428 Mil.
Non Operating Income was 8 + 7 + 3 + 7 = $25 Mil.
Cash Flow from Operations was 255 + 120 + 301 + 185 = $861 Mil.
Accounts Receivable was $1,777 Mil.
Revenue was 3202 + 2572 + 3875 + 4915 = $14,564 Mil.
Gross Profit was 365 + 254 + 430 + 279 = $1,328 Mil.
Total Current Assets was $2,634 Mil.
Total Assets was $14,698 Mil.
Property, Plant and Equipment(Net PPE) was $9,629 Mil.
Depreciation, Depletion and Amortization(DDA) was $329 Mil.
Selling, General & Admin. Expense(SGA) was $367 Mil.
Total Current Liabilities was $2,117 Mil.
Long-Term Debt was $4,619 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)
=(1397 / 8757) / (1777 / 14564)
=0.15952952 / 0.12201318
=1.3075

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)
=(1328 / 14564) / (1442 / 8757)
=0.09118374 / 0.16466827
=0.5537

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 - (2376 + 11350) / 16799) / (1 - (2634 + 9629) / 14698)
=0.18292756 / 0.1656688
=1.1042

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
=8757 / 14564
=0.6013

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))
=(329 / (329 + 9629)) / (421 / (421 + 11350))
=0.03303876 / 0.03576587
=0.9238

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)
=(327 / 8757) / (367 / 14564)
=0.03734156 / 0.02519912
=1.4819

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)
=((6112 + 1870) / 16799) / ((4619 + 2117) / 14698)
=0.47514733 / 0.45829365
=1.0368

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
=(428 - 25 - 861) / 16799
=-0.0273

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 -2.98 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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.94051.13080.42263.39350.88160.93061.1379
GMI 1.05251.06660.97480.46151.33520.81410.5235
AQI 0.95970.8231.04510.96231.38941.31541.0714
SGI 1.30191.2651.36870.53571.44351.39130.5797
DEPI 1.13511.04191.17350.91021.04930.91230.9383
SGAI 0.80630.79780.77072.01530.77942.00651.5882
LVGI 1.04671.06380.92541.02080.9881.03590.9744
TATA -0.0246-0.0346-0.02220.0239-0.0294-0.0237-0.0147
M-score -2.34-2.30-2.70-1.07-1.95-2.47-3.12

Sunoco Logistics Partners LP Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 0.9511.06691.06570.74380.56140.78710.74141.13791.31261.3075
GMI 1.3931.42971.27830.90210.75530.60910.49510.51110.48490.5537
AQI 0.89130.87470.8470.920.97750.92830.98581.07141.07281.1042
SGI 1.33151.27391.19051.08710.91930.8040.65160.57970.59880.6013
DEPI 0.80360.98271.18471.20681.15281.08430.99870.93830.91830.9238
SGAI 0.70720.55150.46841.42281.56432.41513.71371.80311.69561.4819
LVGI 1.14341.18351.13841.09140.93910.93010.93050.97441.03641.0368
TATA -0.0171-0.0172-0.0083-0.022-0.0305-0.0097-0.022-0.0147-0.0196-0.0273
M-score -2.16-2.06-2.14-2.90-3.30-3.34-3.85-3.16-3.03-2.98
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