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H World Group Beneish M-Score

: -2.59 (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 -2.59 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

HTHT' s Beneish M-Score Range Over the Past 10 Years
Min: -3.41   Med: -2.48   Max: 1.5
Current: -2.59

During the past 13 years, the highest Beneish M-Score of H World Group was 1.50. The lowest was -3.41. And the median was -2.48.


H World Group Beneish M-Score Historical Data

The historical data trend for H World 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.

H World Group Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -1.52 -3.05 -2.51 1.50 -2.81

H World Group Quarterly Data
Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22
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 -0.90 -2.40 -2.52 -2.81 -2.59

Competitive Comparison

For the Lodging subindustry, H World 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.

   

H World Group Beneish M-Score Distribution

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

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



H World 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 H World 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 * 0.9774+0.528 * 0.5808+0.404 * 1.0058+0.892 * 1.31+0.115 * 0.9475
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0233+4.679 * -0.0275-0.327 * 1.0275
=-2.59

* 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 (Mar22) TTM:Last Year (Mar21) TTM:
Total Receivables was $172 Mil.
Revenue was 422.56407023295 + 525.64646036456 + 545.6685717826 + 558.28793774319 = $2,052 Mil.
Gross Profit was -20.805094095766 + 24.178481151775 + 98.818208571473 + 131.98443579767 = $234 Mil.
Total Current Assets was $1,343 Mil.
Total Assets was $9,752 Mil.
Property, Plant and Equipment(Net PPE) was $6,141 Mil.
Depreciation, Depletion and Amortization(DDA) was $249 Mil.
Selling, General, & Admin. Expense(SGA) was $365 Mil.
Total Current Liabilities was $2,416 Mil.
Long-Term Debt & Capital Lease Obligation was $5,366 Mil.
Net Income was -99.297040002522 + -72.064434082238 + -21.219583972244 + 58.832684824903 = $-134 Mil.
Non Operating Income was 8.1959461589383 + -59.033174760178 + -22.923346188994 + -5.2918287937743 = $-79 Mil.
Cash Flow from Operations was -145.16281562273 + 136.12170882201 + 29.738395055992 + 192.68482490272 = $213 Mil.
Total Receivables was $135 Mil.
Revenue was 357.40066657451 + 469.62213080911 + 463.6889554518 + 275.78513330321 = $1,566 Mil.
Gross Profit was -20.888049271222 + 49.393665988714 + 101.01899979444 + -25.700406687754 = $104 Mil.
Total Current Assets was $1,626 Mil.
Total Assets was $9,554 Mil.
Property, Plant and Equipment(Net PPE) was $5,718 Mil.
Depreciation, Depletion and Amortization(DDA) was $220 Mil.
Selling, General, & Admin. Expense(SGA) was $272 Mil.
Total Current Liabilities was $1,409 Mil.
Long-Term Debt & Capital Lease Obligation was $6,011 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)
=(172.27248368691 / 2052.1670401233) / (134.54361148228 / 1566.4968861386)
=0.08394662 / 0.08588821
=0.9774

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)
=(103.82420982418 / 1566.4968861386) / (234.17603142515 / 2052.1670401233)
=0.06627795 / 0.11411158
=0.5808

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 - (1342.5590265738 + 6140.6550452353) / 9751.7573999937) / (1 - (1626.1960712037 + 5718.1034879971) / 9553.9787126204)
=0.23262918 / 0.23128366
=1.0058

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
=2052.1670401233 / 1566.4968861386
=1.31

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))
=(219.51665506202 / (219.51665506202 + 5718.1034879971)) / (249.34043299613 / (249.34043299613 + 6140.6550452353))
=0.03697048 / 0.03902044
=0.9475

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)
=(364.98583172049 / 2052.1670401233) / (272.26868986234 / 1566.4968861386)
=0.17785386 / 0.17380736
=1.0233

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)
=((5366.2957475649 + 2415.5975159979) / 9751.7573999937) / ((6010.5361777942 + 1409.3289714172) / 9553.9787126204)
=0.79799906 / 0.77662567
=1.0275

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
=(-133.7483732321 - -79.052403584007 - 213.38211315799) / 9751.7573999937
=-0.0275

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.

H World Group has a M-score of -2.59 suggests that the company is unlikely to be a manipulator.


H World Group Beneish M-Score Related Terms

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H World Group Business Description

H World Group logo
Address
No. 699 Wuzhong Road, Minhang District, Shanghai, CHN, 201103
Huazhu Group Ltd is a China-based hotel group. It operates in the leased, manachised and franchised models. The lease model involves operating hotels located on leased properties. The manachised model involves management of hotels through on-site hotel managers appointed by the group and fees are collected from franchisees. The franchise model includes providing training and reservation and support services to the franchised hotels but on-site hotel managers are not appointed. Brands under which it operates hotels are Joya Hotel, Manxin Hotels and Resorts, JI Hotel, Starway Hotel, Elan Hotel, HanTing Hotel, and Hi Inn. Revenues are derived from operating leased hotels and franchise and service fees from their manachised and franchised hotels.

H World Group Headlines

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