Switch to:
GuruFocus has detected 5 Warning Signs with Energy Transfer Partners LP $ETP.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
Energy Transfer Partners LP (NYSE:ETP)
Beneish M-Score
-3.35 (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.

Energy Transfer Partners LP has a M-score of -3.35 suggests that the company is not a manipulator.

ETP' s Beneish M-Score Range Over the Past 10 Years
Min: -30.35   Max: 4.35
Current: -3.35

-30.35
4.35

During the past 13 years, the highest Beneish M-Score of Energy Transfer Partners LP was 4.35. The lowest was -30.35. And the median was -2.48.


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 Energy Transfer 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 * 1.1037+0.528 * 0.8616+0.404 * 0.9035+0.892 * 0.8176+0.115 * 0.2484
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9937+4.679 * -0.1339-0.327 * 0.9332
=-3.35

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Mar17) TTM:Last Year (Mar16) TTM:
Accounts Receivable was $1,877 Mil.
Revenue was 3702 + 6526 + 5531 + 5289 = $21,048 Mil.
Gross Profit was 790 + 2771 + 1212 + 1285 = $6,058 Mil.
Total Current Assets was $2,931 Mil.
Total Assets was $19,936 Mil.
Property, Plant and Equipment(Net PPE) was $13,149 Mil.
Depreciation, Depletion and Amortization(DDA) was $2,005 Mil.
Selling, General & Admin. Expense(SGA) was $299 Mil.
Total Current Liabilities was $2,469 Mil.
Long-Term Debt was $6,760 Mil.
Net Income was 585 + -458 + 74 + 370 = $571 Mil.
Non Operating Income was 10 + 84 + -219 + 65 = $-60 Mil.
Cash Flow from Operations was 117 + 838 + 1039 + 1306 = $3,300 Mil.
Accounts Receivable was $2,080 Mil.
Revenue was 1777 + 5825 + 6601 + 11540 = $25,743 Mil.
Gross Profit was 341 + 3351 + 1141 + 1551 = $6,384 Mil.
Total Current Assets was $4,759 Mil.
Total Assets was $64,315 Mil.
Property, Plant and Equipment(Net PPE) was $45,787 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,556 Mil.
Selling, General & Admin. Expense(SGA) was $368 Mil.
Total Current Liabilities was $4,911 Mil.
Long-Term Debt was $26,992 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)
=(1877 / 21048) / (2080 / 25743)
=0.08917712 / 0.08079866
=1.1037

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)
=(6384 / 25743) / (6058 / 21048)
=0.24798974 / 0.28781832
=0.8616

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 - (2931 + 13149) / 19936) / (1 - (4759 + 45787) / 64315)
=0.19341894 / 0.21408692
=0.9035

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
=21048 / 25743
=0.8176

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))
=(1556 / (1556 + 45787)) / (2005 / (2005 + 13149))
=0.03286653 / 0.1323083
=0.2484

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)
=(299 / 21048) / (368 / 25743)
=0.01420563 / 0.01429515
=0.9937

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)
=((6760 + 2469) / 19936) / ((26992 + 4911) / 64315)
=0.46293138 / 0.49604291
=0.9332

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
=(571 - -60 - 3300) / 19936
=-0.1339

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.

Energy Transfer Partners LP has a M-score of -3.35 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 local exchange's currency.

Energy Transfer Partners LP Annual Data

Aug07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
DSRI 1.10260.69061.75710.80570.90192.21450.3750.87161.01972.2268
GMI 0.65091.48990.56831.11760.99341.69741.87060.66420.6010.7186
AQI 0.94320.74421.41430.66111.23642.23260.94511.06720.83960.8173
SGI 0.86421.36830.58291.07861.16362.30953.07831.14770.61820.6365
DEPI 1.09521.04360.87971.11150.98331.28370.52181.15651.00251.0929
SGAI 1.53780.20131.53640.93810.84471.08380.36160.941.47771.151
LVGI 0.89331.07880.93660.99990.96940.83971.06120.97531.00481.0777
TATA -0.0565-0.0389-0.0091-0.0471-0.04-0.0167-0.0543-0.0344-0.0273-0.0422
M-score -3.03-2.35-2.34-2.86-2.480.66-0.98-2.74-3.29-2.14

Energy Transfer Partners LP Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
DSRI 0.88420.58630.82740.76471.00511.73052.06762.51452.54171.1037
GMI 0.6680.62460.59010.53050.59750.54330.46570.50520.72210.8616
AQI 1.06721.00511.08510.96280.83960.84850.80520.78880.81730.9035
SGI 1.13131.06160.96130.75780.62710.48780.38810.43970.55770.8176
DEPI 1.15650.8631.35891.34141.00251.70771.05831.12141.09290.2484
SGAI 0.90051.2321.46681.56771.54261.37671.21261.08841.10610.9937
LVGI 0.97530.91380.94380.9611.00480.99911.00111.04831.07770.9332
TATA -0.0339-0.0398-0.0204-0.025-0.0273-0.0226-0.0356-0.0365-0.0443-0.1339
M-score -2.73-3.22-2.97-3.34-3.31-2.66-2.60-2.12-1.92-3.35
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)

GF Chat

FEEDBACK