Brookfield Renewable Partners LP (Brookfield Renewable Partners LP) Beneish M-Score : -1.51 (As of Apr. 24, 2024)

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What is Brookfield Renewable Partners LP Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Warning Sign:

Beneish M-Score -1.51 higher than -1.78, which implies that the company might have manipulated its financial results.

The historical rank and industry rank for Brookfield Renewable Partners LP's Beneish M-Score or its related term are showing as below:

BEP' s Beneish M-Score Range Over the Past 10 Years
Min: -2.77 Med: -2.23 Max: -1.5
Current: -1.51

During the past 13 years, the highest Beneish M-Score of Brookfield Renewable Partners LP was -1.50. The lowest was -2.77. And the median was -2.23.

Brookfield Renewable Partners LP Beneish M-Score Historical Data

The historical data trend for Brookfield Renewable Partners LP's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Brookfield Renewable Partners LP Beneish M-Score Chart

Brookfield Renewable Partners LP Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.21

-2.77

-2.64

-2.11

-1.51

Brookfield Renewable Partners LP Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Beneish M-Score	Get a 7-Day Free Trial															-2.11	-2.15	-2.16	-2.38	-1.51

Competitive Comparison of Brookfield Renewable Partners LP's Beneish M-Score

For the Utilities - Renewable subindustry, Brookfield Renewable Partners LP's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Brookfield Renewable Partners LP's Beneish M-Score Distribution in the Utilities - Independent Power Producers Industry

For the Utilities - Independent Power Producers industry and Utilities sector, Brookfield Renewable Partners LP's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Brookfield Renewable Partners LP's Beneish M-Score falls into.

Brookfield Renewable Partners LP Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski 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 Brookfield Renewable Partners LP for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 2.0806

0.528 * 1.1287

0.404 * 1.1208

0.892 * 1.0694

0.115 * 1.0076

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.7889

4.679 * -0.038816

0.327 * 1.007

-1.45

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was $2,521 Mil.
Revenue was 1323 + 1179 + 1205 + 1331 = $5,038 Mil.
Gross Profit was 712 + 683 + 780 + 930 = $3,105 Mil.
Total Current Assets was $4,610 Mil.
Total Assets was $76,128 Mil.
Property, Plant and Equipment(Net PPE) was $64,005 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,852 Mil.
Selling, General, & Admin. Expense(SGA) was $205 Mil.
Total Current Liabilities was $8,038 Mil.
Long-Term Debt & Capital Lease Obligation was $25,494 Mil.
Net Income was 14 + -30 + -18 + -16 = $-50 Mil.
Non Operating Income was 361 + 223 + 305 + 151 = $1,040 Mil.
Cash Flow from Operations was 457 + 363 + 382 + 663 = $1,865 Mil.

Total Receivables was $1,133 Mil.
Revenue was 1196 + 1105 + 1274 + 1136 = $4,711 Mil.
Gross Profit was 822 + 761 + 908 + 786 = $3,277 Mil.
Total Current Assets was $4,183 Mil.
Total Assets was $64,111 Mil.
Property, Plant and Equipment(Net PPE) was $54,283 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,583 Mil.
Selling, General, & Admin. Expense(SGA) was $243 Mil.
Total Current Liabilities was $4,943 Mil.
Long-Term Debt & Capital Lease Obligation was $23,100 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total 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)
	=	(2521 / 5038)	/	(1133 / 4711)
	=	0.500397	/	0.240501
	=	2.0806

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)
	=	(3277 / 4711)	/	(3105 / 5038)
	=	0.695606	/	0.616316
	=	1.1287

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 Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (4610 + 64005) / 76128)	/	(1 - (4183 + 54283) / 64111)
	=	0.098689	/	0.08805
	=	1.1208

4. SGI = Sales Growth Index

Ratio of Revenue 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
	=	5038	/	4711
	=	1.0694

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization 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))
	=	(1583 / (1583 + 54283))	/	(1852 / (1852 + 64005))
	=	0.028336	/	0.028122
	=	1.0076

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales 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)
	=	(205 / 5038)	/	(243 / 4711)
	=	0.040691	/	0.051581
	=	0.7889

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 in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((25494 + 8038) / 76128)	/	((23100 + 4943) / 64111)
	=	0.440469	/	0.437413
	=	1.007

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
	=	(-50 - 1040	-	1865)	/	76128
	=	-0.038816

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Brookfield Renewable Partners LP has a M-score of -1.45 signals that the company is likely to be a manipulator.

Brookfield Renewable Partners LP Beneish M-Score Related Terms

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Brookfield Renewable Partners LP (Brookfield Renewable Partners LP) Business Description

Industry

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Comparable Companies

Traded in Other Exchanges

BEPpA.PFD:USA BEP.PR.O.PFD:Canada BEP.PR.M.PFD:Canada BEP.UN:Canada BEP.PR.G.PFD:Canada

Address

73 Front Street, 5th Floor, Hamilton, BMU, HM 12

Website

https://www.bep.brookfield.com

Brookfield Renewable is a globally diversified, multitechnology owner and operator of clean energy assets. The company's portfolio consists of hydroelectric, wind, solar, and storage facilities in North America, South America, Europe, and Asia, and totals over 20 gigawatts of installed capacity. Brookfield Renewable invests in assets directly, as well as with institutional partners, joint venture partners, and through other arrangements. The company offers two separate listings for investors: Brookfield Renewable Partners LP and Brookfield Renewable Corporation.