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Park Hotels & Resorts Beneish M-Score

: -1.96 (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 -1.96 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

PK' s Beneish M-Score Range Over the Past 10 Years
Min: -5.95   Med: -2.45   Max: -0.06
Current: -1.96

During the past 9 years, the highest Beneish M-Score of Park Hotels & Resorts was -0.06. The lowest was -5.95. And the median was -2.45.


Park Hotels & Resorts Beneish M-Score Historical Data

The historical data trend for Park Hotels & Resorts'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.

Park Hotels & Resorts Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only -1.50 -2.42 -2.47 -5.95 -1.88

Park Hotels & Resorts Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
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 -0.06 -1.44 -1.88 -2.27 -1.96

Competitive Comparison

For the REIT - Hotel & Motel subindustry, Park Hotels & Resorts'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.

   

Park Hotels & Resorts Beneish M-Score Distribution

For the REITs industry and Real Estate sector, Park Hotels & Resorts's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Park Hotels & Resorts's Beneish M-Score falls into.



Park Hotels & Resorts 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 Park Hotels & Resorts 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 * 0.8072+0.528 * -0.7254+0.404 * 0.8407+0.892 * 2.9299+0.115 * 1.0151
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.3012+4.679 * -0.0365-0.327 * 0.992
=-1.96

* 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 (Jun22) TTM:Last Year (Jun21) TTM:
Total Receivables was $149 Mil.
Revenue was 695 + 479 + 451 + 423 = $2,048 Mil.
Gross Profit was 223 + 102 + 101 + 95 = $521 Mil.
Total Current Assets was $1,062 Mil.
Total Assets was $9,701 Mil.
Property, Plant and Equipment(Net PPE) was $8,554 Mil.
Depreciation, Depletion and Amortization(DDA) was $273 Mil.
Selling, General, & Admin. Expense(SGA) was $60 Mil.
Total Current Liabilities was $335 Mil.
Long-Term Debt & Capital Lease Obligation was $4,918 Mil.
Net Income was 150 + -57 + -67 + -86 = $-60 Mil.
Non Operating Income was 95 + 5 + -3 + -18 = $79 Mil.
Cash Flow from Operations was 147 + 44 + -42 + 66 = $215 Mil.
Total Receivables was $63 Mil.
Revenue was 323 + 165 + 113 + 98 = $699 Mil.
Gross Profit was 55 + -24 + -60 + -100 = $-129 Mil.
Total Current Assets was $1,119 Mil.
Total Assets was $10,266 Mil.
Property, Plant and Equipment(Net PPE) was $9,040 Mil.
Depreciation, Depletion and Amortization(DDA) was $293 Mil.
Selling, General, & Admin. Expense(SGA) was $68 Mil.
Total Current Liabilities was $281 Mil.
Long-Term Debt & Capital Lease Obligation was $5,323 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)
=(149 / 2048) / (63 / 699)
=0.07275391 / 0.09012876
=0.8072

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)
=(-129 / 699) / (521 / 2048)
=-0.18454936 / 0.25439453
=-0.7254

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 - (1062 + 8554) / 9701) / (1 - (1119 + 9040) / 10266)
=0.00876198 / 0.01042275
=0.8407

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
=2048 / 699
=2.9299

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))
=(293 / (293 + 9040)) / (273 / (273 + 8554))
=0.03139398 / 0.03092784
=1.0151

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)
=(60 / 2048) / (68 / 699)
=0.02929688 / 0.09728183
=0.3012

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)
=((4918 + 335) / 9701) / ((5323 + 281) / 10266)
=0.54149057 / 0.5458796
=0.992

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
=(-60 - 79 - 215) / 9701
=-0.0365

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.

Park Hotels & Resorts has a M-score of -1.96 suggests that the company is unlikely to be a manipulator.


Park Hotels & Resorts Beneish M-Score Related Terms

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Park Hotels & Resorts Business Description

Park Hotels & Resorts logo
Traded in Other Exchanges
Address
1775 Tysons Boulevard, 7th Floor, Tysons, VA, USA, 22102
Park Hotels & Resorts owns upper-upscale and luxury hotels with 27,889 rooms across 48 hotels in the United States. Park also has interests through joint ventures in another 4,297 rooms in seven U.S. hotels. Park was spun out of narrow-moat Hilton Worldwide Holdings at the start of 2017, so most of the company's hotels are still under Hilton brands. The company has sold all its international hotels and 15 lower-quality U.S. hotels to focus on high-quality assets in domestic, gateway markets.
Executives
Vu Nancy M. officer: SVP,Gen. Counsel & Secretary 1775 TYSONS BLVD. 7TH FLOOR TYSONS VA 22102
Natelli Thomas A director 1997 ANNAPOLIS EXCHANGE PARKWAY SUITE 410 ANNAPOLIS MD 21401
Eckert Thomas D director 1997 ANNAPOLIS EXCHANGE PARKWAY SUITE 410 ANNAPOLIS MD 21401
Mayfield Carl A. officer: EVP, Design and Construction C/O PARK HOTELS & RESORTS INC. 1775 TYSONS BLVD, 7TH FLOOR TYSONS VA 22102
Garrett Geoffrey director C/O PARK HOTELS & RESORTS 1775 TYSONS BOULEVARD, 7TH FLOOR TYSONS VA 22102
Xianyu Mu director C/O PARK HOTELS & RESORTS INC. 1600 TYSONS BOULEVARD, STE. 1000 MCLEAN VA 22102
Hna Tourism (hk) Group Co., Ltd. 10 percent owner THE CENTER, 99 QUEEN'S ROAD CENTRAL CENTRAL K3 999077
Hna Hlt Holdco I Llc 10 percent owner THE CORPORATION TRUST COMPANY 1209 ORANGE STREET WILMINGTON DE 19801
Hna Hlt Holdco Iii Ltd 10 percent owner THE CENTER 99 QUEEN?S ROAD CENTRAL CENTRAL K3 999077
Hna Group Co., Ltd. 10 percent owner HNA BUILDING NO. 7 GUOXING ROAD HAIKOU, HAINAN F4 570203
Hna Hlt Holdco Ii Llc 10 percent owner THE CORPORATION TRUST COMPANY 1209 ORANGE STREET WILMINGTON DE 19801
Hna Tourism Group Co., Ltd. 10 percent owner HNA BUILDING NO. 7 GUOXING ROAD HAIKOU F4 570203
Hlt Breh Vi-a Holdings Prime Holdco Llc 10 percent owner C/O THE BLACKSTONE GROUP L.P. 345 PARK AVE. NEW YORK NY 10154
Bedient Patricia M director 33663 WEYERHAEUSER WAY SOUTH FEDERAL WAY WA 98003
Olander Jill C officer: See Remarks C/O PARK HOTELS & RESORTS INC. 1775 TYSONS BLVD., 7TH FLOOR TYSONS VA 22102

Park Hotels & Resorts Headlines

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Bear of the Day: Park Hotels (PK)

By Zacks 2020-10-01

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