Travel Expert (Asia) Enterprises (HKSE:01235) Beneish M-Score : -1.16 (As of May. 01, 2024)

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What is Travel Expert (Asia) Enterprises Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Warning Sign:

Beneish M-Score -1.16 higher than -1.78, which implies that the company might have manipulated its financial results.

The historical rank and industry rank for Travel Expert (Asia) Enterprises's Beneish M-Score or its related term are showing as below:

HKSE:01235' s Beneish M-Score Range Over the Past 10 Years
Min: -2.59 Med: -1.82 Max: 7.93
Current: -1.16

During the past 13 years, the highest Beneish M-Score of Travel Expert (Asia) Enterprises was 7.93. The lowest was -2.59. And the median was -1.82.

Travel Expert (Asia) Enterprises Beneish M-Score Historical Data

The historical data trend for Travel Expert (Asia) Enterprises's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Travel Expert (Asia) Enterprises Beneish M-Score Chart

Travel Expert (Asia) Enterprises Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Beneish M-Score

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-0.70

-2.39

7.93

-1.81

-1.16

Travel Expert (Asia) Enterprises Semi-Annual Data
	Mar14	Sep14	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
Beneish M-Score	Get a 7-Day Free Trial															-	-1.81	-	-1.16	-

Competitive Comparison of Travel Expert (Asia) Enterprises's Beneish M-Score

For the Travel Services subindustry, Travel Expert (Asia) Enterprises's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Travel Expert (Asia) Enterprises's Beneish M-Score Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Travel Expert (Asia) Enterprises's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Travel Expert (Asia) Enterprises's Beneish M-Score falls into.

Travel Expert (Asia) Enterprises Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski 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 Travel Expert (Asia) Enterprises for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 0.2986

0.528 * 0.9856

0.404 * 1.6477

0.892 * 3.9181

0.115 * 0.9

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.319

4.679 * -0.187925

0.327 * 1.3508

-1.16

This Year (Mar23) TTM:

Last Year (Mar22) TTM:

Total Receivables was HK$8.61 Mil.
Revenue was HK$40.27 Mil.
Gross Profit was HK$22.07 Mil.
Total Current Assets was HK$95.84 Mil.
Total Assets was HK$105.36 Mil.
Property, Plant and Equipment(Net PPE) was HK$5.82 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$3.45 Mil.
Selling, General, & Admin. Expense(SGA) was HK$37.41 Mil.
Total Current Liabilities was HK$43.46 Mil.
Long-Term Debt & Capital Lease Obligation was HK$2.14 Mil.
Net Income was HK$-2.20 Mil.
Gross Profit was HK$0.00 Mil.
Cash Flow from Operations was HK$17.60 Mil.

Total Receivables was HK$7.36 Mil.
Revenue was HK$10.28 Mil.
Gross Profit was HK$5.55 Mil.
Total Current Assets was HK$85.49 Mil.
Total Assets was HK$89.99 Mil.
Property, Plant and Equipment(Net PPE) was HK$2.58 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$1.30 Mil.
Selling, General, & Admin. Expense(SGA) was HK$29.94 Mil.
Total Current Liabilities was HK$24.79 Mil.
Long-Term Debt & Capital Lease Obligation was HK$4.04 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total 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)
	=	(8.611 / 40.27)	/	(7.361 / 10.278)
	=	0.213832	/	0.71619
	=	0.2986

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)
	=	(5.551 / 10.278)	/	(22.066 / 40.27)
	=	0.540086	/	0.547951
	=	0.9856

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 Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (95.837 + 5.82) / 105.361)	/	(1 - (85.485 + 2.582) / 89.987)
	=	0.035155	/	0.021336
	=	1.6477

4. SGI = Sales Growth Index

Ratio of Revenue 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
	=	40.27	/	10.278
	=	3.9181

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization 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))
	=	(1.3 / (1.3 + 2.582))	/	(3.449 / (3.449 + 5.82))
	=	0.334879	/	0.372101
	=	0.9

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales 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)
	=	(37.41 / 40.27)	/	(29.935 / 10.278)
	=	0.928979	/	2.912532
	=	0.319

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 in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((2.137 + 43.457) / 105.361)	/	((4.042 + 24.787) / 89.987)
	=	0.432741	/	0.320368
	=	1.3508

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
	=	(-2.204 - 0	-	17.596)	/	105.361
	=	-0.187925

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Travel Expert (Asia) Enterprises has a M-score of -1.16 signals that the company is likely to be a manipulator.

Travel Expert (Asia) Enterprises Beneish M-Score Related Terms

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Travel Expert (Asia) Enterprises (HKSE:01235) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » Travel Expert (Asia) Enterprises Ltd (HKSE:01235) » Definitions » Beneish M-Score

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Traded in Other Exchanges

N/A

Address

88 Connaught Road West, 8th Floor, Guangdong Finance Building, Hong Kong, HKG

Website

https://www.tegroup.com.hk

Travel Expert (Asia) Enterprises Ltd is an investment holding company. It is engaged in the provision of services relating to sales of air tickets, hotel accommodation, and other travel/wedding-related activities. The company operates through three business segments which include the Travel and travel/wedding-related business, Food, and beverage business, and Treasury activities. It generates maximum revenue from the Travel and travel/wedding-related business segment. Geographically, it derives a majority of its revenue from Hong Kong and also has a presence in the PRC.

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