ALGT has been removed from your Stock Email Alerts list.
Please enter Portfolio Name for new portfolio.
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.
During the past 13 years, the highest Beneish M-Score of Allegiant Travel Co was -1.59. The lowest was -3.63. And the median was -2.95.
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 Allegiant Travel Co 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 * 1.3115||+||0.528 * 0.8977||+||0.404 * 1.6352||+||0.892 * 1.0912||+||0.115 * 1.0832|
|-||0.172 * SGAI||+||4.679 * TATA||-||0.327 * LVGI|
|-||0.172 * 1.0226||+||4.679 * -0.1084||-||0.327 * 0.9539|
|This Year (Jun16) TTM:||Last Year (Jun15) TTM:|
|Accounts Receivable was $20 Mil.|
Revenue was 344.851 + 348.615 + 310.89 + 299.956 = $1,304 Mil.
Gross Profit was 222.257 + 237.497 + 199.868 + 179.861 = $839 Mil.
Total Current Assets was $428 Mil.
Total Assets was $1,447 Mil.
Property, Plant and Equipment(Net PPE) was $937 Mil.
Depreciation, Depletion and Amortization(DDA) was $99 Mil.
Selling, General & Admin. Expense(SGA) was $344 Mil.
Total Current Liabilities was $441 Mil.
Long-Term Debt was $551 Mil.
Net Income was 60.847 + 71.98 + 56.709 + 44.458 = $234 Mil.
Non Operating Income was 0.072 + 0.009 + 0.019 + 0.067 = $0 Mil.
Cash Flow from Operations was 95.66 + 160.439 + 97.757 + 36.865 = $391 Mil.
|Accounts Receivable was $14 Mil.
Revenue was 322.102 + 329.241 + 278.952 + 265.029 = $1,195 Mil.
Gross Profit was 194.826 + 213.653 + 155.639 + 126.539 = $691 Mil.
Total Current Assets was $453 Mil.
Total Assets was $1,317 Mil.
Property, Plant and Equipment(Net PPE) was $819 Mil.
Depreciation, Depletion and Amortization(DDA) was $94 Mil.
Selling, General & Admin. Expense(SGA) was $308 Mil.
Total Current Liabilities was $384 Mil.
Long-Term Debt was $562 Mil.
1. DSRI = Days Sales in Receivables Index
A large increase in DSR could be indicative of revenue inflation.
|DSRI||=||(Receivables_t / Revenue_t)||/||(Receivables_t-1 / Revenue_t-1)|
|=||(20.041 / 1304.312)||/||(14.004 / 1195.324)|
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.
|=||(GrossProfit_t-1 / Revenue_t-1)||/||(GrossProfit_t / Revenue_t)|
|=||(690.657 / 1195.324)||/||(839.483 / 1304.312)|
3. AQI = Asset Quality Index
AQI is the ratio of asset quality in year t to year t-1.
|AQI||=||(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)||/||(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)|
|=||(1 - (427.901 + 937.125) / 1446.965)||/||(1 - (452.895 + 818.961) / 1317.481)|
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.
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))|
|=||(94.479 / (94.479 + 818.961))||/||(98.927 / (98.927 + 937.125))|
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)|
|=||(344.11 / 1304.312)||/||(308.382 / 1195.324)|
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)|
|=||((550.636 + 441.192) / 1446.965)||/||((562.382 + 384.327) / 1317.481)|
8. TATA = Total Accruals to Total Assets
Total accruals calculated as the change in working capital accounts other than cash less depreciation.
|=||(NetIncome_t - NonOperatingIncome_t||-||CashFlowsfromOperations_t)||/||TotalAssets_t|
|=||(233.994 - 0.167||-||390.721)||/||1446.965|
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.
Allegiant Travel Co has a M-score of -2.40 suggests that the company will not be a manipulator.
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
Allegiant Travel Co Annual Data
Allegiant Travel Co Quarterly Data