Switch to:
Allegiant Travel Co (NAS:ALGT)
Beneish M-Score
-2.36 (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.

Allegiant Travel Co has a M-score of -2.36 suggests that the company is not a manipulator.

ALGT' s Beneish M-Score Range Over the Past 10 Years
Min: -3.63   Max: -1.59
Current: -2.36

-3.63
-1.59

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 -2.92.


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 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 * 1.6489+0.528 * 0.935+0.404 * 0.9459+0.892 * 1.0875+0.115 * 1.2075
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0888+4.679 * -0.1114-0.327 * 0.9535
=-2.36

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

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $28 Mil.
Revenue was 333.481 + 344.851 + 348.615 + 310.89 = $1,338 Mil.
Gross Profit was 205.661 + 222.257 + 237.497 + 199.868 = $865 Mil.
Total Current Assets was $393 Mil.
Total Assets was $1,535 Mil.
Property, Plant and Equipment(Net PPE) was $1,066 Mil.
Depreciation, Depletion and Amortization(DDA) was $100 Mil.
Selling, General & Admin. Expense(SGA) was $369 Mil.
Total Current Liabilities was $476 Mil.
Long-Term Debt was $561 Mil.
Net Income was 45.453 + 60.847 + 71.98 + 56.709 = $235 Mil.
Non Operating Income was 0.061 + 0.072 + 0.009 + 0.019 = $0 Mil.
Cash Flow from Operations was 51.994 + 95.66 + 160.439 + 97.757 = $406 Mil.
Accounts Receivable was $16 Mil.
Revenue was 299.956 + 322.102 + 329.241 + 278.952 = $1,230 Mil.
Gross Profit was 179.861 + 194.826 + 213.653 + 155.639 = $744 Mil.
Total Current Assets was $403 Mil.
Total Assets was $1,304 Mil.
Property, Plant and Equipment(Net PPE) was $833 Mil.
Depreciation, Depletion and Amortization(DDA) was $97 Mil.
Selling, General & Admin. Expense(SGA) was $311 Mil.
Total Current Liabilities was $358 Mil.
Long-Term Debt was $566 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)
=(28.173 / 1337.837) / (15.712 / 1230.251)
=0.02105862 / 0.01277138
=1.6489

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)
=(743.979 / 1230.251) / (865.283 / 1337.837)
=0.60473757 / 0.6467776
=0.935

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 - (393.429 + 1066.108) / 1534.814) / (1 - (403.477 + 832.822) / 1303.907)
=0.04904633 / 0.05185032
=0.9459

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
=1337.837 / 1230.251
=1.0875

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))
=(96.651 / (96.651 + 832.822)) / (100.462 / (100.462 + 1066.108))
=0.10398473 / 0.08611742
=1.2075

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)
=(368.617 / 1337.837) / (311.317 / 1230.251)
=0.27553207 / 0.25305161
=1.0888

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)
=((561.493 + 475.876) / 1534.814) / ((566.159 + 358.139) / 1303.907)
=0.67589232 / 0.70886804
=0.9535

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
=(234.989 - 0.161 - 405.85) / 1534.814
=-0.1114

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 -2.36 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.

Allegiant Travel Co Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.46441.06620.43911.21140.8831.39571.24180.82520.73880.9598
GMI 0.91340.70481.10470.73911.1541.15930.92660.90230.90850.8124
AQI 0.54871.20620.38871.16612.77431.09761.24621.31690.96951.0276
SGI 1.83661.48171.39781.1071.18941.1741.16631.09621.14141.1101
DEPI 0.73970.87360.83390.80961.09410.9640.85281.0581.31091.0176
SGAI 0.89956.2370.89371.11310.80631.1630.75541.40881.09110.98
LVGI 0.73060.90110.89570.90150.98121.25640.9811.23821.34020.9727
TATA -0.0713-0.1121-0.0856-0.1106-0.0644-0.1139-0.1231-0.1129-0.1484-0.1074
M-score -2.71-3.47-3.20-2.79-1.87-2.49-2.59-3.15-3.44-2.99

Allegiant Travel Co Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 1.10450.88980.73880.63640.60730.84840.95980.96731.31151.6489
GMI 0.93430.93620.92360.83970.81620.79080.79990.86830.89770.935
AQI 0.24732.56610.96950.94272.94170.58511.02761.45931.63520.9459
SGI 1.09491.11841.14141.13461.12721.12191.11011.10121.09121.0875
DEPI 1.49511.33651.31091.33460.94930.94051.01761.07971.08321.2075
SGAI 1.16581.12221.01381.13761.12641.05721.05240.99711.02261.0888
LVGI 1.51961.48471.34021.29271.07171.02250.97270.96740.95390.9535
TATA -0.0767-0.1122-0.1484-0.1603-0.1634-0.1334-0.1074-0.0965-0.1084-0.1114
M-score -3.14-2.54-3.42-3.63-2.86-3.44-3.01-2.73-2.40-2.36
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)
FEEDBACK