Hilton Worldwide Holdings (MIL:1HLT) Beneish M-Score : -2.56 (As of Apr. 04, 2025)

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What is Hilton Worldwide Holdings 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 -2.56 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

MIL:1HLT' s Beneish M-Score Range Over the Past 10 Years
Min: -2.74 Med: -2.52 Max: -2.21
Current: -2.56

During the past 13 years, the highest Beneish M-Score of Hilton Worldwide Holdings was -2.21. The lowest was -2.74. And the median was -2.52.

Hilton Worldwide Holdings Beneish M-Score Historical Data

The historical data trend for Hilton Worldwide Holdings'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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Hilton Worldwide Holdings Beneish M-Score Chart

Hilton Worldwide Holdings Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Beneish M-Score

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-2.63

-2.21

-2.30

-2.53

-2.56

Hilton Worldwide Holdings 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															-2.53	-2.57	-2.55	-2.54	-2.56

Competitive Comparison of Hilton Worldwide Holdings's Beneish M-Score

For the Lodging subindustry, Hilton Worldwide Holdings'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.

Hilton Worldwide Holdings's Beneish M-Score Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Hilton Worldwide Holdings's Beneish M-Score distribution charts can be found below:

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

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Hilton Worldwide Holdings 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 Hilton Worldwide Holdings 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 * 1.017

0.528 * 1.0458

0.404 * 0.9705

0.892 * 1.0901

0.115 * 1.0237

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9319

4.679 * -0.026904

0.327 * 1.0932

-2.51

This Year (Dec24) TTM:

Last Year (Dec23) TTM:

Total Receivables was €1,512 Mil.
Revenue was 2657.765 + 2583.167 + 2741.479 + 2367.16 = €10,350 Mil.
Gross Profit was 638.895 + 710.889 + 844.461 + 640.32 = €2,835 Mil.
Total Current Assets was €3,125 Mil.
Total Assets was €15,779 Mil.
Property, Plant and Equipment(Net PPE) was €934 Mil.
Depreciation, Depletion and Amortization(DDA) was €135 Mil.
Selling, General, & Admin. Expense(SGA) was €384 Mil.
Total Current Liabilities was €4,489 Mil.
Long-Term Debt & Capital Lease Obligation was €10,840 Mil.
Net Income was 482.275 + 309.944 + 391.109 + 243.8 = €1,427 Mil.
Non Operating Income was 3.82 + 5.406 + 6.503 + -27.6 = €-12 Mil.
Cash Flow from Operations was 555.81 + 598.264 + 391.109 + 318.32 = €1,864 Mil.

Total Receivables was €1,364 Mil.
Revenue was 2392.453 + 2504.601 + 2455.18 + 2141.662 = €9,494 Mil.
Gross Profit was 562.121 + 763.655 + 789.165 + 604.298 = €2,719 Mil.
Total Current Assets was €2,397 Mil.
Total Assets was €14,123 Mil.
Property, Plant and Equipment(Net PPE) was €917 Mil.
Depreciation, Depletion and Amortization(DDA) was €136 Mil.
Selling, General, & Admin. Expense(SGA) was €378 Mil.
Total Current Liabilities was €3,413 Mil.
Long-Term Debt & Capital Lease Obligation was €9,138 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)
	=	(1511.765 / 10349.571)	/	(1363.579 / 9493.896)
	=	0.14607	/	0.143627
	=	1.017

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)
	=	(2719.239 / 9493.896)	/	(2834.565 / 10349.571)
	=	0.28642	/	0.273882
	=	1.0458

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 - (3124.76 + 933.99) / 15778.51)	/	(1 - (2397.038 + 917) / 14122.717)
	=	0.742767	/	0.76534
	=	0.9705

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
	=	10349.571	/	9493.896
	=	1.0901

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))
	=	(136.45 / (136.45 + 917))	/	(135.288 / (135.288 + 933.99))
	=	0.129527	/	0.126523
	=	1.0237

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)
	=	(384.293 / 10349.571)	/	(378.269 / 9493.896)
	=	0.037131	/	0.039843
	=	0.9319

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)
	=	((10840.205 + 4488.5) / 15778.51)	/	((9137.905 + 3413.074) / 14122.717)
	=	0.971493	/	0.888709
	=	1.0932

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
	=	(1427.128 - -11.871	-	1863.503)	/	15778.51
	=	-0.026904

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.

Hilton Worldwide Holdings has a M-score of -2.51 suggests that the company is unlikely to be a manipulator.

Hilton Worldwide Holdings Beneish M-Score Related Terms

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Hilton Worldwide Holdings Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » Hilton Worldwide Holdings Inc (MIL:1HLT) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

HLT:USA HLT:Mexico 0J5I:UK HI91:Germany H1LT34:Brazil HLTW:Austria

Address

7930 Jones Branch Drive, Suite 1100, McLean, VA, USA, 22102

Website

https://www.hilton.com

Hilton Worldwide Holdings operates more than 1.2 million rooms across its more than 20 brands serving the premium economy through luxury segments. Hampton and Hilton are the two largest brands, representing 27% and 18%, respectively, of the company's total rooms, as of Dec. 31, 2024. Recent brands launched over the last few years include Home2, Curio, Canopy, Spark, Tru, Tempo, and LivSmart, as well as a partnership with Small Luxury Hotels of the World and acquisitions of NoMad and Graduate Hotels. Managed and franchised hotels represent the vast majority of adjusted EBITDA, predominantly from the Americas.

Hilton Worldwide Holdings Headlines

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