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Travelzoo Inc (NAS:TZOO)
Beneish M-Score
-2.48 (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 -2.48 suggests that the company is not a manipulator.

TZOO' s Beneish M-Score Range Over the Past 10 Years
Min: -4.25   Max: 1.65
Current: -2.48

-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 * 1.0266+0.528 * 0.9815+0.404 * 0.8132+0.892 * 0.9124+0.115 * 1.0032
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9664+4.679 * 0.0208-0.327 * 0.8806
=-2.48

* 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 $16.7 Mil.
Revenue was 30.44 + 34.046 + 34.804 + 32.051 = $131.3 Mil.
Gross Profit was 27.079 + 30.434 + 30.795 + 27.723 = $116.0 Mil.
Total Current Assets was $47.2 Mil.
Total Assets was $56.5 Mil.
Property, Plant and Equipment(Net PPE) was $6.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $2.4 Mil.
Selling, General & Admin. Expense(SGA) was $95.3 Mil.
Total Current Liabilities was $29.8 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was 1.619 + 2.02 + 2.049 + 0.435 = $6.1 Mil.
Non Operating Income was 0.251 + -0.091 + 0.133 + -0.376 = $-0.1 Mil.
Cash Flow from Operations was -1.989 + 2.491 + 1.414 + 3.117 = $5.0 Mil.
Accounts Receivable was $17.8 Mil.
Revenue was 33.728 + 36.792 + 39.145 + 34.291 = $144.0 Mil.
Gross Profit was 28.986 + 31.584 + 34.599 + 29.651 = $124.8 Mil.
Total Current Assets was $58.7 Mil.
Total Assets was $71.0 Mil.
Property, Plant and Equipment(Net PPE) was $8.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $3.1 Mil.
Selling, General & Admin. Expense(SGA) was $108.1 Mil.
Total Current Liabilities was $36.8 Mil.
Long-Term Debt was $5.7 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)
=(16.692 / 131.341) / (17.822 / 143.956)
=0.12708903 / 0.12380172
=1.0266

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)
=(124.82 / 143.956) / (116.031 / 131.341)
=0.86707049 / 0.8834332
=0.9815

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 - (47.205 + 6.73) / 56.46) / (1 - (58.707 + 8.361) / 70.971)
=0.04472193 / 0.05499429
=0.8132

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
=131.341 / 143.956
=0.9124

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))
=(3.052 / (3.052 + 8.361)) / (2.446 / (2.446 + 6.73))
=0.26741435 / 0.26656495
=1.0032

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)
=(95.329 / 131.341) / (108.119 / 143.956)
=0.72581296 / 0.75105588
=0.9664

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 + 29.75) / 56.46) / ((5.658 + 36.81) / 70.971)
=0.52692171 / 0.59838526
=0.8806

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
=(6.123 - -0.083 - 5.033) / 56.46
=0.0208

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 -2.48 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.

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 0.93842.71033.07341.75681.23650.98921.02080.60171.07451.1295
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 -2.64-1.78-1.72-2.12-3.00-3.45-3.32-3.61-1.45-1.96

Travelzoo Inc Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 1.01541.02371.33211.19661.17831.28781.05981.16361.15231.0266
GMI 1.01291.01621.02031.01261.01621.01411.00791.0090.99190.9815
AQI 0.95891.4661.07450.73950.71840.97911.12951.48351.12020.8132
SGI 1.05281.03470.86550.86940.89240.88180.95960.93690.91870.9124
DEPI 1.37221.27441.14960.88070.8670.91040.91741.00831.05231.0032
SGAI 0.95050.95171.07131.08311.08661.06590.96540.95190.95480.9664
LVGI 1.11750.73670.75170.71790.81481.41.29441.40351.53490.8806
TATA -0.05650.2060.17060.14510.06730.16080.11540.1380.11090.0208
M-score -2.68-1.14-1.37-1.77-2.17-1.72-1.96-1.66-2.01-2.48
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