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Sunoco Logistics Partners LP (NYSE:SXL)
Beneish M-Score
-3.19 (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 -3.19 suggests that the company is not a manipulator.

SXL' s 10-Year Beneish M-Score Range
Min: -3.22   Max: -1.07
Current: -3.19

-3.22
-1.07

During the past 13 years, the highest Beneish M-Score of Sunoco Logistics Partners LP was -1.07. The lowest was -3.22. And the median was -2.29.


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 * 0.7871+0.528 * 0.6622+0.404 * 0.9283+0.892 * 0.804+0.115 * 1.0843
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.6892+4.679 * -0.0097-0.327 * 0.9301
=-3.19

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

This Year (Jun15) TTM:Last Year (Jun14) TTM:
Accounts Receivable was $1,777 Mil.
Revenue was 3202 + 2572 + 3875 + 4915 = $14,564 Mil.
Gross Profit was 326 + 263 + 330 + 334 = $1,253 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 $292 Mil.
Total Current Liabilities was $2,117 Mil.
Long-Term Debt was $4,619 Mil.
Net Income was 276 + 36 + -127 + 155 = $340 Mil.
Non Operating Income was 6 + 6 + 7 + 7 = $26 Mil.
Cash Flow from Operations was 188 + -76 + 240 + 105 = $457 Mil.
Accounts Receivable was $2,808 Mil.
Revenue was 4821 + 4477 + 4288 + 4528 = $18,114 Mil.
Gross Profit was 276 + 267 + 248 + 241 = $1,032 Mil.
Total Current Assets was $3,517 Mil.
Total Assets was $13,454 Mil.
Property, Plant and Equipment(Net PPE) was $7,536 Mil.
Depreciation, Depletion and Amortization(DDA) was $280 Mil.
Selling, General & Admin. Expense(SGA) was $215 Mil.
Total Current Liabilities was $3,261 Mil.
Long-Term Debt was $3,368 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)
=(1777 / 14564) / (2808 / 18114)
=0.12201318 / 0.15501822
=0.7871

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)
=(263 / 18114) / (326 / 14564)
=0.05697251 / 0.08603406
=0.6622

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 - (2634 + 9629) / 14698) / (1 - (3517 + 7536) / 13454)
=0.1656688 / 0.17845994
=0.9283

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
=14564 / 18114
=0.804

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))
=(280 / (280 + 7536)) / (329 / (329 + 9629))
=0.03582395 / 0.03303876
=1.0843

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)
=(292 / 14564) / (215 / 18114)
=0.02004944 / 0.01186927
=1.6892

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)
=((4619 + 2117) / 14698) / ((3368 + 3261) / 13454)
=0.45829365 / 0.49271592
=0.9301

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
=(340 - 26 - 457) / 14698
=-0.0097

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 -3.19 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 1.0350.94051.13080.42263.39370.88160.929410.7438
GMI 1.20271.05251.06660.97480.46211.33320.93721.06980.9374
AQI 0.83430.95970.8231.04510.96231.38941.31543.09940.9281
SGI 1.29771.30191.2651.36870.53561.44351.3931.26591.0871
DEPI 1.17931.13511.04191.17350.91771.04070.892225.61.2068
SGAI 0.84370.80630.79780.77071.99350.78790.89741.57991.2035
LVGI 1.0191.04671.06380.92541.02080.9881.03590.62731.0937
TATA -0.025-0.0329-0.0459-0.00610.0069-0.0294-0.0214-0.0258-0.022
M-score -2.22-2.37-2.36-2.62-1.15-1.95-2.211.37-2.84

Sunoco Logistics Partners LP Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 1.00781.0380.958710.95131.06731.0660.74380.56140.7871
GMI 0.88440.89671.04091.09621.3031.34011.14040.95920.79780.6622
AQI 2.37812.33672.40792.31110.89130.87470.8470.92810.97750.9283
SGI 1.0971.09911.16891.26761.3311.27351.19021.08710.91930.804
DEPI 1.16541.04310.905225.60.80360.98271.18471.20681.15281.0843
SGAI 0.85380.9440.731.19070.98610.76390.87821.09621.24751.6892
LVGI 0.59480.60360.60850.63491.14341.18351.13841.09370.93910.9301
TATA 0.03660.020.0141-0.0258-0.0171-0.0172-0.0083-0.022-0.0305-0.0097
M-score -1.54-1.63-1.551.13-2.26-2.15-2.28-2.81-3.22-3.19
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