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Avis Budget Group Beneish M-Score

: -2.33 (As of Today)
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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 -2.33 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

NAS:CAR' s Beneish M-Score Range Over the Past 10 Years
Min: -4.24   Med: -2.79   Max: 2.05
Current: -2.33

-4.24
2.05

During the past 13 years, the highest Beneish M-Score of Avis Budget Group was 2.05. The lowest was -4.24. And the median was -2.79.


Avis Budget Group Beneish M-Score Historical Data

The historical data trend for Avis Budget Group'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.

Avis Budget Group Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.93 -2.98 -3.04 -3.05 -2.99

Avis Budget Group Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
Beneish M-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -3.31 -3.15 -2.99 -2.32 -2.33

Competitive Comparison

For the Rental & Leasing Services subindustry, Avis Budget Group'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.

   

Avis Budget Group Beneish M-Score Distribution

For the Business Services industry and Industrials sector, Avis Budget Group's Beneish M-Score distribution charts can be found below:

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



Avis Budget Group 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 Avis Budget Group 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 * 1.6623+0.528 * 0.9308+0.404 * 0.8239+0.892 * 0.8928+0.115 * 1.1953
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8715+4.679 * -0.0647-0.327 * 1.0035
=-2.33

* 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.

This Year (Jun21) TTM:Last Year (Jun20) TTM:
Accounts Receivable was $797 Mil.
Revenue was 2371 + 1372 + 1355 + 1534 = $6,632 Mil.
Gross Profit was 1993 + 1069 + 1042 + 1169 = $5,273 Mil.
Total Current Assets was $2,736 Mil.
Total Assets was $22,013 Mil.
Property, Plant and Equipment(Net PPE) was $14,621 Mil.
Depreciation, Depletion and Amortization(DDA) was $2,466 Mil.
Selling, General, & Admin. Expense(SGA) was $796 Mil.
Total Current Liabilities was $2,467 Mil.
Long-Term Debt & Capital Lease Obligation was $16,632 Mil.
Net Income was 398 + -170 + -90 + 45 = $183 Mil.
Non Operating Income was 17 + -101 + 5 + 90 = $11 Mil.
Cash Flow from Operations was 919 + 336 + 59 + 282 = $1,596 Mil.
Accounts Receivable was $537 Mil.
Revenue was 760 + 1753 + 2162 + 2753 = $7,428 Mil.
Gross Profit was 384 + 1283 + 1665 + 2165 = $5,497 Mil.
Total Current Assets was $2,240 Mil.
Total Assets was $21,690 Mil.
Property, Plant and Equipment(Net PPE) was $13,882 Mil.
Depreciation, Depletion and Amortization(DDA) was $2,894 Mil.
Selling, General, & Admin. Expense(SGA) was $1,023 Mil.
Total Current Liabilities was $2,103 Mil.
Long-Term Debt & Capital Lease Obligation was $16,650 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Accounts Receivable 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)
=(797 / 6632) / (537 / 7428)
=0.12017491 / 0.07229402
=1.6623

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)
=(5497 / 7428) / (5273 / 6632)
=0.7400377 / 0.79508444
=0.9308

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 - (2736 + 14621) / 22013) / (1 - (2240 + 13882) / 21690)
=0.21151138 / 0.25670816
=0.8239

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
=6632 / 7428
=0.8928

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))
=(2894 / (2894 + 13882)) / (2466 / (2466 + 14621))
=0.17250835 / 0.14432024
=1.1953

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)
=(796 / 6632) / (1023 / 7428)
=0.12002413 / 0.13772213
=0.8715

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)
=((16632 + 2467) / 22013) / ((16650 + 2103) / 21690)
=0.86762368 / 0.86459198
=1.0035

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
=(183 - 11 - 1596) / 22013
=-0.0647

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.

Avis Budget Group has a M-score of -2.33 suggests that the company is unlikely to be a manipulator.


Avis Budget Group Beneish M-Score Related Terms

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Avis Budget Group Business Description

Avis Budget Group logo
Industry
Industrials » Business Services NAICS : 532111 SIC : 7514
Traded in Other Exchanges
Address
6 Sylvan Way, Parsippany, NJ, USA, 07054
Avis Budget Group Inc is a provider of automotive vehicle rental and car-sharing services. Its brands include Avis, Budget, and Zipcar. Avis is targeted to serve the premium commercial and leisure segments of the travel industry, while Budget is focused on value-conscious customers. The company operates its own network of rental locations and licenses its brands to franchisees. Zipcar is a car-sharing service that allows members to use the company-owned Zipcar fleet at an hourly rate. The company's largest region by revenue is the Americas.
Executives
Ferraro Joseph A. officer: President and CEO 6 SYLVAN WAY PARSIPPANY NJ 07054
Martins Izilda P officer: EVP, Americas 6 SYLVAN WAY PARSIPPANY NJ 07054
Sarma Karthik R. director, 10 percent owner ONE BRYANT PARK 39TH FLOOR NEW YORK NY 10036
Srs Investment Management, Llc director, 10 percent owner 1 BRYANT PARK 39TH FLOOR NEW YORK NY 10036
Hees Bernardo director, officer: Executive Chairman C/O THE KRAFT HEINZ COMPANY ONE PPG PLACE, SUITE 3200 PITTSBURGH PA 15222
Choi Brian J officer: EVP & Chief Financial Officer C/O SRS INVESTMENT MANAGEMENT, LLC ONE BRYANT PARK, 39TH FLOOR NEW YORK NY 10036
Rankin Patrick K officer: President, International 6 SYLVAN WAY PARSIPPANY NJ 07054
Lurie Glenn director C/O SYNCHRONOSS TECHNOLOGIES, INC. 200 CROSSING BLVD. BRIDGEWATER NJ 08807
Sparks Carl director 4315 NORTHAVEN ROAD DALLAS TX 75229
Krominga Lynn director 6 SYLVAN WAY PARSIPPANY NJ 07054
North John F officer: EVP & Chief Financial Officer 150 N. BARTLETT STREET MEDFORD OR 97501
Sera Jean M officer: SVP, GC & Corp. Sec. AVIS BUDGET GROUP 6 SYLVAN WAY PARSIPPANY NJ 07054
Fox Jeffrey H director ONE ALLIED DRIVE LITTLE ROCK AR 72202
Salerno F Robert director AVIS RENT A CAR INC 900 OLD COUNTRY RD GARDEN CITY NY 11530
Degenova Cathleen officer: Chief Accounting Officer 6 SYLVAN WAY PARSIPPANY NJ 07054

Avis Budget Group Headlines

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