Switch to:
Sunoco Logistics Partners LP (NYSE:SXL)
Beneish M-Score
-2.22 (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 -2.21 signals that the company is a manipulator.

SXL' s 10-Year Beneish M-Score Range
Min: -2.9   Max: -1.07
Current: -2.22

-2.9
-1.07

During the past 13 years, the highest Beneish M-Score of Sunoco Logistics Partners LP was -1.07. The lowest was -2.90. 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 * 1.0673+0.528 * 1.3047+0.404 * 0.8747+0.892 * 1.2735+0.115 * 0.7046
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8634+4.679 * -0.0172-0.327 * 1.1835
=-2.21

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was $2,808 Mil.
Revenue was 4821 + 4477 + 4288 + 4528 = $18,114 Mil.
Gross Profit was 304 + 267 + 248 + 241 = $1,060 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 $243 Mil.
Total Current Liabilities was $3,261 Mil.
Long-Term Debt was $3,368 Mil.
Net Income was 156 + 107 + 102 + 78 = $443 Mil.
Non Operating Income was 7 + 4 + 5 + 7 = $23 Mil.
Cash Flow from Operations was 346 + -125 + 288 + 143 = $652 Mil.
Accounts Receivable was $2,066 Mil.
Revenue was 4311 + 3512 + 3194 + 3207 = $14,224 Mil.
Gross Profit was 288 + 288 + 261 + 249 = $1,086 Mil.
Total Current Assets was $3,127 Mil.
Total Assets was $11,400 Mil.
Property, Plant and Equipment(Net PPE) was $5,947 Mil.
Depreciation, Depletion and Amortization(DDA) was $154 Mil.
Selling, General & Admin. Expense(SGA) was $221 Mil.
Total Current Liabilities was $2,432 Mil.
Long-Term Debt was $2,314 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)
=(2808 / 18114) / (2066 / 14224)
=0.15501822 / 0.14524747
=1.0673

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)
=(267 / 14224) / (304 / 18114)
=0.07634983 / 0.05851827
=1.3047

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 - (3517 + 7536) / 13454) / (1 - (3127 + 5947) / 11400)
=0.17845994 / 0.20403509
=0.8747

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
=18114 / 14224
=1.2735

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))
=(154 / (154 + 5947)) / (280 / (280 + 7536))
=0.02524176 / 0.03582395
=0.7046

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)
=(243 / 18114) / (221 / 14224)
=0.01341504 / 0.01553712
=0.8634

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)
=((3368 + 3261) / 13454) / ((2314 + 2432) / 11400)
=0.49271592 / 0.41631579
=1.1835

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
=(443 - 23 - 652) / 13454
=-0.0172

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 -2.21 signals that the company is likely to 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 0.98831.0350.94051.13080.42263.39350.88160.93060.6088
GMI 1.27371.20271.05251.06660.97480.46151.33520.81410.8771
AQI 0.850.83430.95970.8231.04510.96231.38941.31543.1088
SGI 1.29581.29771.30191.2651.36870.53571.44351.39132.1229
DEPI 0.94631.17931.13511.04191.17350.91021.04930.91230.7701
SGAI 0.77230.84370.80630.79780.77072.01530.77942.00651.5702
LVGI 1.00861.0191.04671.06380.92541.02080.9881.03590.6273
TATA -0.0464-0.0258-0.0329-0.0459-0.02220.0239-0.0294-0.0237-0.0258
M-score -2.33-2.22-2.37-2.36-2.70-1.07-1.95-2.47-1.17

Sunoco Logistics Partners LP Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 0.72370.6440.69471.00781.0380.958710.95131.0673
GMI 0.80210.86820.81850.88440.89671.04091.09621.3031.3047
AQI 1.54211.63861.00922.37812.33672.40792.31810.89130.8747
SGI 1.43371.47081.36181.0971.09911.16891.26761.3311.2735
DEPI 0.90370.83550.88551.78471.45481.184525.60.52480.7046
SGAI 1.95881.83312.18610.85380.9440.731.19070.98610.8634
LVGI 1.00260.95860.94140.59480.60360.60850.63491.14341.1835
TATA -0.041-0.0615-0.03690.03660.020.0141-0.0258-0.0171-0.0172
M-score -2.60-2.64-2.90-1.47-1.59-1.521.14-2.29-2.21
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK