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Travelzoo Inc (NAS:TZOO)
Beneish M-Score
-2.01 (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 -2.01 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: -2.01

-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 * 1.1523+0.528 * 0.9919+0.404 * 1.1202+0.892 * 0.9187+0.115 * 1.0523
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9548+4.679 * 0.1109-0.327 * 1.5349
=-2.01

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $18.4 Mil.
Revenue was 34.046 + 34.804 + 32.051 + 33.728 = $134.6 Mil.
Gross Profit was 30.434 + 30.795 + 27.723 + 28.986 = $117.9 Mil.
Total Current Assets was $50.2 Mil.
Total Assets was $60.2 Mil.
Property, Plant and Equipment(Net PPE) was $7.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $2.5 Mil.
Selling, General & Admin. Expense(SGA) was $98.0 Mil.
Total Current Liabilities was $34.5 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was 2.02 + 2.049 + 0.435 + 8.857 = $13.4 Mil.
Non Operating Income was -0.091 + 0.133 + -0.376 + -0.202 = $-0.5 Mil.
Cash Flow from Operations was 2.491 + 1.414 + 3.117 + 0.207 = $7.2 Mil.
Accounts Receivable was $17.4 Mil.
Revenue was 36.792 + 39.145 + 34.291 + 36.307 = $146.5 Mil.
Gross Profit was 31.584 + 34.599 + 29.651 + 31.494 = $127.3 Mil.
Total Current Assets was $78.9 Mil.
Total Assets was $91.0 Mil.
Property, Plant and Equipment(Net PPE) was $8.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $3.2 Mil.
Selling, General & Admin. Expense(SGA) was $111.7 Mil.
Total Current Liabilities was $34.0 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)
=(18.4 / 134.629) / (17.38 / 146.535)
=0.13667189 / 0.11860648
=1.1523

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)
=(127.328 / 146.535) / (117.938 / 134.629)
=0.86892551 / 0.87602225
=0.9919

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 - (50.238 + 7.228) / 60.153) / (1 - (78.944 + 8.413) / 90.985)
=0.04466943 / 0.0398747
=1.1202

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
=134.629 / 146.535
=0.9187

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))
=(3.154 / (3.154 + 8.413)) / (2.528 / (2.528 + 7.228))
=0.27267226 / 0.25912259
=1.0523

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)
=(97.981 / 134.629) / (111.7 / 146.535)
=0.72778525 / 0.76227522
=0.9548

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 + 34.504) / 60.153) / ((0 + 34.001) / 90.985)
=0.57360398 / 0.37369896
=1.5349

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
=(13.361 - -0.536 - 7.229) / 60.153
=0.1109

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 -2.01 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 0.58891.20751.11630.85110.98180.76321.00230.90931.28371.0997
GMI 0.99761.0121.00891.02631.00471.02771.01631.00461.01921.0089
AQI 0.93842.71033.07341.75681.23650.98921.02080.60171.07451.1074
SGI 1.36941.1351.02421.16281.20021.31531.01911.12880.89810.9248
DEPI 1.18491.82571.69250.42710.79720.94731.17081.34741.14960.9174
SGAI 0.80761.27811.12370.99270.91560.92731.0490.99561.04260.992
LVGI 1.26181.71291.30130.74581.05381.62340.99681.37710.75171.2944
TATA -0.0116-0.0258-0.03640.003-0.1602-0.1801-0.1891-0.19620.1560.1154
M-score -2.64-1.78-1.72-2.12-3.00-3.45-3.32-3.61-1.45-1.97

Travelzoo Inc Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 0.91631.01541.02371.33211.19661.17831.28781.05981.16361.1523
GMI 1.01411.01291.01621.02031.01261.01621.01411.00791.0090.9919
AQI 0.8250.95891.4661.07450.73950.71840.97911.10741.48351.1202
SGI 1.09511.05281.03470.86550.86940.89240.88180.95960.93690.9187
DEPI 1.42631.37221.27441.14960.88070.8670.91040.91741.00831.0523
SGAI 0.9710.95050.95171.07131.08311.08661.06590.96540.95190.9548
LVGI 1.31221.11750.73670.75170.71790.81481.41.29441.40351.5349
TATA -0.1935-0.05650.2060.17060.14510.06730.16080.11540.1380.1109
M-score -3.49-2.68-1.14-1.37-1.77-2.17-1.72-1.97-1.66-2.01
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