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Travelzoo Inc (NAS:TZOO)
Beneish M-Score
-1.64 (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.

Travelzoo Inc has a M-score of -1.64 signals that the company is a manipulator.

TZOO' s Beneish M-Score Range Over the Past 10 Years
Min: -4.25   Max: 1.65
Current: -1.64

-4.25
1.65

During the past 13 years, the highest Beneish M-Score of Travelzoo Inc was 1.65. The lowest was -4.25. And the median was -2.11.


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 Travelzoo Inc 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 * 1.1871+0.528 * 1.0095+0.404 * 1.4835+0.892 * 0.9183+0.115 * 1.0083
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9764+4.679 * 0.1419-0.327 * 1.4035
=-1.64

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $17.4 Mil.
Revenue was 34.804 + 32.051 + 33.728 + 34.064 = $134.6 Mil.
Gross Profit was 30.795 + 27.723 + 28.986 + 29.159 = $116.7 Mil.
Total Current Assets was $51.1 Mil.
Total Assets was $62.1 Mil.
Property, Plant and Equipment(Net PPE) was $7.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $2.6 Mil.
Selling, General & Admin. Expense(SGA) was $100.0 Mil.
Total Current Liabilities was $34.2 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was 2.049 + 0.435 + 8.857 + 1.326 = $12.7 Mil.
Non Operating Income was 0.133 + -0.376 + -0.202 + 0.021 = $-0.4 Mil.
Cash Flow from Operations was 1.414 + 3.117 + -1.723 + 1.472 = $4.3 Mil.
Accounts Receivable was $16.0 Mil.
Revenue was 39.145 + 34.291 + 36.307 + 36.883 = $146.6 Mil.
Gross Profit was 34.599 + 29.651 + 31.494 + 32.509 = $128.3 Mil.
Total Current Assets was $77.4 Mil.
Total Assets was $89.6 Mil.
Property, Plant and Equipment(Net PPE) was $8.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $3.1 Mil.
Selling, General & Admin. Expense(SGA) was $111.5 Mil.
Total Current Liabilities was $35.2 Mil.
Long-Term Debt was $0.0 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)
=(17.414 / 134.647) / (15.974 / 146.626)
=0.12933077 / 0.10894384
=1.1871

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)
=(27.723 / 146.626) / (30.795 / 134.647)
=0.8746948 / 0.86643594
=1.0095

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 - (51.133 + 7.374) / 62.073) / (1 - (77.444 + 8.693) / 89.607)
=0.05744849 / 0.03872465
=1.4835

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
=134.647 / 146.626
=0.9183

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))
=(3.108 / (3.108 + 8.693)) / (2.607 / (2.607 + 7.374))
=0.26336751 / 0.26119627
=1.0083

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)
=(99.998 / 134.647) / (111.525 / 146.626)
=0.74266786 / 0.76060862
=0.9764

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)
=((0 + 34.225) / 62.073) / ((0 + 35.203) / 89.607)
=0.55136694 / 0.39285993
=1.4035

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
=(12.667 - -0.424 - 4.28) / 62.073
=0.1419

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.

Travelzoo Inc has a M-score of -1.64 signals that the company is likely to 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 own currency.

Travelzoo Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.58891.20751.10820.85730.98180.76321.00230.98061.2841.0196
GMI 0.99761.0121.01061.02461.00471.02771.01631.00651.01841.0078
AQI 0.93842.71033.07341.75681.23650.98921.02080.60171.07451.1074
SGI 1.36941.1351.03161.15441.20021.31531.01911.04670.89790.9975
DEPI 1.18491.82571.69250.42710.79720.94731.17081.39561.15840.879
SGAI 0.80761.27811.2990.85870.91561.11270.87421.04131.05780.9348
LVGI 1.26181.71291.30130.74581.05381.62340.99681.37710.75171.2944
TATA -0.0116-0.0258-0.03650.003-0.1602-0.179-0.1892-0.19040.15890.1154
M-score -2.64-1.78-1.75-2.10-3.00-3.47-3.29-3.59-1.44-1.98

Travelzoo Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 0.90930.91631.01541.02371.33211.19661.20071.31271.08061.1871
GMI 1.00461.01411.01291.01621.02031.01261.01661.01461.00841.0095
AQI 0.60170.8250.95891.4661.07450.73950.71840.97911.10741.4835
SGI 1.12881.09511.05281.03470.86550.86940.87580.86510.94120.9183
DEPI 1.34741.42631.37221.27441.14960.88070.88850.91040.91741.0083
SGAI 0.99560.9710.95050.95171.07131.08311.11251.09190.98940.9764
LVGI 1.37711.31221.11750.73670.75170.71790.81481.41.29441.4035
TATA -0.1961-0.1935-0.05650.2060.17060.14510.04880.16430.1190.1419
M-score -3.61-3.49-2.68-1.14-1.37-1.77-2.25-1.70-1.96-1.64
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