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Energy Transfer LP Beneish M-Score

: -1.75 (As of Today)
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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 -1.75 higher than -1.78, which implies that the company might have manipulated its financial results.

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

ET' s Beneish M-Score Range Over the Past 10 Years
Min: -4.62   Med: -2.53   Max: 9.48
Current: -1.75

During the past 13 years, the highest Beneish M-Score of Energy Transfer LP was 9.48. The lowest was -4.62. And the median was -2.53.


Energy Transfer LP Beneish M-Score Historical Data

The historical data trend for Energy Transfer 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.

* Premium members only.

Energy Transfer LP Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.42 -2.79 -2.53 -3.20 -1.79

Energy Transfer LP Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Beneish M-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.13 -2.16 -1.79 -1.61 -1.75

Competitive Comparison

For the Oil & Gas Midstream subindustry, Energy Transfer 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.

   

Energy Transfer LP Beneish M-Score Distribution

For the Oil & Gas industry and Energy sector, Energy Transfer LP's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Energy Transfer LP's Beneish M-Score falls into.



Energy Transfer 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 Energy Transfer 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 * 1.1056+0.528 * 1.6496+0.404 * 0.885+0.892 * 1.5697+0.115 * 1.0088
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.7766+4.679 * -0.0439-0.327 * 1.0041
=-1.75

* 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.

This Year (Jun22) TTM:Last Year (Jun21) TTM:
Total Receivables was $10,371 Mil.
Revenue was 25945 + 20491 + 18657 + 16664 = $81,757 Mil.
Gross Profit was 3384 + 3325 + 2923 + 2533 = $12,165 Mil.
Total Current Assets was $15,434 Mil.
Total Assets was $108,769 Mil.
Property, Plant and Equipment(Net PPE) was $80,690 Mil.
Depreciation, Depletion and Amortization(DDA) was $3,997 Mil.
Selling, General, & Admin. Expense(SGA) was $874 Mil.
Total Current Liabilities was $13,475 Mil.
Long-Term Debt & Capital Lease Obligation was $48,905 Mil.
Net Income was 1326 + 1269 + 921 + 635 = $4,151 Mil.
Non Operating Income was 173 + -109 + 36 + 105 = $205 Mil.
Cash Flow from Operations was 2354 + 2370 + 1739 + 2263 = $8,726 Mil.
Total Receivables was $5,976 Mil.
Revenue was 15101 + 16995 + 10034 + 9955 = $52,085 Mil.
Gross Profit was 2656 + 5093 + 2368 + 2667 = $12,784 Mil.
Total Current Assets was $8,208 Mil.
Total Assets was $96,242 Mil.
Property, Plant and Equipment(Net PPE) was $75,392 Mil.
Depreciation, Depletion and Amortization(DDA) was $3,769 Mil.
Selling, General, & Admin. Expense(SGA) was $717 Mil.
Total Current Liabilities was $8,547 Mil.
Long-Term Debt & Capital Lease Obligation was $46,424 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)
=(10371 / 81757) / (5976 / 52085)
=0.12685152 / 0.11473553
=1.1056

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)
=(12784 / 52085) / (12165 / 81757)
=0.24544495 / 0.1487946
=1.6496

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 - (15434 + 80690) / 108769) / (1 - (8208 + 75392) / 96242)
=0.11625555 / 0.13135637
=0.885

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
=81757 / 52085
=1.5697

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))
=(3769 / (3769 + 75392)) / (3997 / (3997 + 80690))
=0.04761183 / 0.04719733
=1.0088

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)
=(874 / 81757) / (717 / 52085)
=0.01069022 / 0.01376596
=0.7766

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)
=((48905 + 13475) / 108769) / ((46424 + 8547) / 96242)
=0.573509 / 0.57117475
=1.0041

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
=(4151 - 205 - 8726) / 108769
=-0.0439

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.

Energy Transfer LP has a M-score of -1.75 signals that the company is likely to be a manipulator.


Energy Transfer LP Beneish M-Score Related Terms

Thank you for viewing the detailed overview of Energy Transfer LP's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


Energy Transfer LP Business Description

Energy Transfer LP logo
Traded in Other Exchanges
Address
8111 Westchester Drive, Suite 600, Dallas, TX, USA, 75225
Energy Transfer owns a large platform of crude oil, natural gas, and natural gas liquid assets primarily in Texas and the U.S. midcontinent region. It also has gathering and processing facilities, one of the largest fractionation facilities in the U.S., and fuel distribution. Energy Transfer also owns the Lake Charles gas liquefaction facility. It combined its publicly traded limited and general partnerships in October 2018.
Executives
Whitehurst Bradford D. officer: CFO 100 CONGRESS AVENUE SUITE 450 AUSTIN TX 78701
Perry James Richard director 1108 LAVACA, SUITE 110 #143 AUSTIN TX 78701
Washburne Ray W director 47 HIGHLAND PARK VILLAGE SUITE 200 DALLAS TX 75205
Sturrock Troy officer: SVP & Controller 1039 NORTH OAK CLIFF BOULEVARD DALLAS TX 75208
Grimm Michael K director 3141 HOOD STREET, SUITE 350 DALLAS TX 75219
Anderson Steven R. director 1818 MARKET STREET SUITE 1500 PHILADELPHIA PA 19103
Brannon Richard D director C/O CH4 ENERGY SIX, LLC 5128 APACHE PLUME ROAD, SUITE 300 FORT WORTH TX 76109
Mcreynolds John W director, officer: President 1601 BRYAN ST 30TH FL DALLAS TX 75201
Warren Kelcy L director, 10 percent owner
Mccrea Marshall S Iii director, officer: See Remarks
Ramsey Matthew S. director 6002 DEERWOOD HOUSTON TX 77057
Long Thomas E officer: Chief Financial Officer 370 17TH STREET SUITE 2775 DENVER CO 80202
Mason Thomas P officer: EVP and General Counsel 3738 OAK LAWN AVE DALLAS TX 75219
Collins Ted Jr director 508 W. WALL AVE. SUITE 1200 MIDLAND TX 79701-5076
Williams William Presley director 2126 CLEAR LAKE ROAD WEATHERFORD TX 76087

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