Hilton Worldwide Holdings (BSP:H1LT34) Beneish M-Score : -2.57 (As of Apr. 28, 2024)

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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 -2.57 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:

BSP:H1LT34' s Beneish M-Score Range Over the Past 10 Years
Min: -3.14 Med: -2.47 Max: -1.04
Current: -2.57

During the past 13 years, the highest Beneish M-Score of Hilton Worldwide Holdings was -1.04. The lowest was -3.14. And the median was -2.47.

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.

* Premium members only.

Hilton Worldwide Holdings Beneish M-Score Chart

Hilton Worldwide Holdings Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.51

-2.63

-2.21

-2.30

-2.53

Hilton Worldwide Holdings Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Beneish M-Score	Get a 7-Day Free Trial															-2.33	-2.46	-2.49	-2.53	-2.57

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.

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 * 1.0132

0.528 * 1.0684

0.404 * 0.9609

0.892 * 1.0664

0.115 * 1.0826

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9803

4.679 * -0.043713

0.327 * 1.0845

-2.61

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was R$7,305 Mil.
Revenue was 12813.025 + 12783.578 + 13201.145 + 12910.842 = R$51,709 Mil.
Gross Profit was 3465.941 + 3003.577 + 4025.041 + 4149.914 = R$14,644 Mil.
Total Current Assets was R$15,851 Mil.
Total Assets was R$79,338 Mil.
Property, Plant and Equipment(Net PPE) was R$4,835 Mil.
Depreciation, Depletion and Amortization(DDA) was R$718 Mil.
Selling, General, & Admin. Expense(SGA) was R$2,070 Mil.
Total Current Liabilities was R$18,794 Mil.
Long-Term Debt & Capital Lease Obligation was R$54,330 Mil.
Net Income was 1319.647 + 720.271 + 1861.89 + 1994.871 = R$5,897 Mil.
Non Operating Income was -149.394 + -195.992 + 39.51 + 24.269 = R$-282 Mil.
Cash Flow from Operations was 1723.011 + 2278.407 + 3392.887 + 2252.117 = R$9,646 Mil.

Total Receivables was R$6,761 Mil.
Revenue was 11943.32 + 12819.758 + 12416.845 + 11306.848 = R$48,487 Mil.
Gross Profit was 3369.964 + 3477.7 + 4027.085 + 3795.87 = R$14,671 Mil.
Total Current Assets was R$13,339 Mil.
Total Assets was R$79,228 Mil.
Property, Plant and Equipment(Net PPE) was R$4,938 Mil.
Depreciation, Depletion and Amortization(DDA) was R$804 Mil.
Selling, General, & Admin. Expense(SGA) was R$1,980 Mil.
Total Current Liabilities was R$17,657 Mil.
Long-Term Debt & Capital Lease Obligation was R$49,674 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)
	=	(7305.367 / 51708.59)	/	(6760.763 / 48486.771)
	=	0.14128	/	0.139435
	=	1.0132

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)
	=	(14670.619 / 48486.771)	/	(14644.473 / 51708.59)
	=	0.30257	/	0.283212
	=	1.0684

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 - (15850.703 + 4835.386) / 79338.174)	/	(1 - (13339.225 + 4937.753) / 79228.015)
	=	0.739267	/	0.769312
	=	0.9609

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
	=	51708.59	/	48486.771
	=	1.0664

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))
	=	(803.697 / (803.697 + 4937.753))	/	(718.101 / (718.101 + 4835.386))
	=	0.139982	/	0.129306
	=	1.0826

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)
	=	(2069.753 / 51708.59)	/	(1979.864 / 48486.771)
	=	0.040027	/	0.040833
	=	0.9803

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)
	=	((54329.618 + 18793.765) / 79338.174)	/	((49674.418 + 17657.154) / 79228.015)
	=	0.921667	/	0.849845
	=	1.0845

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
	=	(5896.679 - -281.607	-	9646.422)	/	79338.174
	=	-0.043713

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 -2.61 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 (BSP:H1LT34) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » Hilton Worldwide Holdings Inc (BSP:H1LT34) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

HLT:USA HLT:Mexico HI91:Germany

Address

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

Website

https://www.hilton.com

Hilton Worldwide Holdings operates 1,127,430 rooms across its 20 plus brands addressing the premium economy scale through luxury segments as of Dec. 31, 2022. Hampton and Hilton are the two largest brands by total room count at 28% and 13%, respectively, as of Dec. 31, 2022. Recent brands launched over the last few years include Home2, Curio, Canopy, Spark, Tru, Tempo, and Project H3. Managed and franchised represent the vast majority of adjusted EBITDA, predominantly from the Americas regions.

Hilton Worldwide Holdings (BSP:H1LT34) Headlines

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