LendingTree (MEX:TREE) Beneish M-Score : -2.21 (As of Apr. 07, 2025)

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What is LendingTree 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.

Good Sign:

Beneish M-Score -2.21 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for LendingTree's Beneish M-Score or its related term are showing as below:

MEX:TREE' s Beneish M-Score Range Over the Past 10 Years
Min: -3.62 Med: -2.77 Max: -1.09
Current: -2.21

During the past 13 years, the highest Beneish M-Score of LendingTree was -1.09. The lowest was -3.62. And the median was -2.77.

LendingTree Beneish M-Score Historical Data

The historical data trend for LendingTree'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.

* Premium members only.

LendingTree Beneish M-Score Chart

LendingTree Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Beneish M-Score

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-3.07

-3.10

-3.62

-2.90

-2.21

LendingTree Quarterly Data
	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
Beneish M-Score	Get a 7-Day Free Trial															-2.90	-2.96	-2.09	-1.93	-2.21

Competitive Comparison of LendingTree's Beneish M-Score

For the Financial Conglomerates subindustry, LendingTree'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.

LendingTree's Beneish M-Score Distribution in the Diversified Financial Services Industry

For the Diversified Financial Services industry and Financial Services sector, LendingTree's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where LendingTree's Beneish M-Score falls into.

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LendingTree 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 LendingTree 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 * 1.4885

0.528 * 0.9812

0.404 * 0.91

0.892 * 1.4688

0.115 * 1.0884

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0091

4.679 * -0.056587

0.327 * 1.011

-1.92

This Year (Dec24) TTM:

Last Year (Dec23) TTM:

Total Receivables was MXN2,039 Mil.
Revenue was 5454.224 + 5135.014 + 3849.786 + 2784.321 = MXN17,223 Mil.
Gross Profit was 5251.006 + 4950.476 + 3695.696 + 2642.506 = MXN16,540 Mil.
Total Current Assets was MXN4,973 Mil.
Total Assets was MXN16,010 Mil.
Property, Plant and Equipment(Net PPE) was MXN1,988 Mil.
Depreciation, Depletion and Amortization(DDA) was MXN456 Mil.
Selling, General, & Admin. Expense(SGA) was MXN14,258 Mil.
Total Current Liabilities was MXN5,015 Mil.
Long-Term Debt & Capital Lease Obligation was MXN8,621 Mil.
Net Income was 156.543 + -1141.604 + 142.017 + 16.862 = MXN-826 Mil.
Non Operating Income was 23.504 + -1209.496 + 15.7 + 16.181 = MXN-1,154 Mil.
Cash Flow from Operations was 338.613 + 891.124 + -90.556 + 94.731 = MXN1,234 Mil.

Total Receivables was MXN933 Mil.
Revenue was 2280.541 + 2703.204 + 3127.956 + 3614.157 = MXN11,726 Mil.
Gross Profit was 2142.608 + 2571.343 + 2968.483 + 3366.133 = MXN11,049 Mil.
Total Current Assets was MXN3,335 Mil.
Total Assets was MXN13,626 Mil.
Property, Plant and Equipment(Net PPE) was MXN1,828 Mil.
Depreciation, Depletion and Amortization(DDA) was MXN466 Mil.
Selling, General, & Admin. Expense(SGA) was MXN9,620 Mil.
Total Current Liabilities was MXN1,284 Mil.
Long-Term Debt & Capital Lease Obligation was MXN10,195 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)
	=	(2039.479 / 17223.345)	/	(932.803 / 11725.858)
	=	0.118414	/	0.079551
	=	1.4885

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)
	=	(11048.567 / 11725.858)	/	(16539.684 / 17223.345)
	=	0.94224	/	0.960306
	=	0.9812

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 - (4973.292 + 1988.32) / 16010.379)	/	(1 - (3335.134 + 1828.177) / 13626.23)
	=	0.565181	/	0.621076
	=	0.91

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
	=	17223.345	/	11725.858
	=	1.4688

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))
	=	(465.618 / (465.618 + 1828.177))	/	(455.82 / (455.82 + 1988.32))
	=	0.20299	/	0.186495
	=	1.0884

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)
	=	(14258.269 / 17223.345)	/	(9619.921 / 11725.858)
	=	0.827846	/	0.820402
	=	1.0091

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)
	=	((8620.954 + 5015.295) / 16010.379)	/	((10195.412 + 1283.745) / 13626.23)
	=	0.851713	/	0.842431
	=	1.011

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
	=	(-826.182 - -1154.111	-	1233.912)	/	16010.379
	=	-0.056587

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.

LendingTree has a M-score of -1.92 suggests that the company is unlikely to be a manipulator.

LendingTree Beneish M-Score Related Terms

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LendingTree Business Description

Industry

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Address

1415 Vantage Park Drive, Suite 700, Charlotte, NC, USA, 28203

Website

https://www.lendingtree.com

LendingTree Inc. is a U.S.-based company that mainly operates an online loan marketplace. The company offers online tools and resources to help consumers find loans or other credit-based products, including mortgage loans, reverse mortgages, home equity loans, personal loans, auto loans, credit cards, student loans, small business loans, and various related products. It provides consumers with direct access to a wide array of lenders. The company has three reportable segments: Home, Consumer, and Insurance. It generates match fees by connecting consumers with lenders and closing fees from lenders when a transaction is finalized. The company conducts business solely in the United States.