Regal Hotels International Holdings (HKSE:00078) Beneish M-Score : -1.91 (As of May. 12, 2024)

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What is Regal Hotels International 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 -1.91 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

HKSE:00078' s Beneish M-Score Range Over the Past 10 Years
Min: -3.83 Med: -2.28 Max: 1.48
Current: -1.91

During the past 13 years, the highest Beneish M-Score of Regal Hotels International Holdings was 1.48. The lowest was -3.83. And the median was -2.28.

Regal Hotels International Holdings Beneish M-Score Historical Data

The historical data trend for Regal Hotels International 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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Regal Hotels International Holdings Beneish M-Score Chart

Regal Hotels International Holdings Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.44

0.77

-3.15

-2.11

-1.91

Regal Hotels International Holdings Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Beneish M-Score	Get a 7-Day Free Trial															-3.15	-	-2.11	-	-1.91

Competitive Comparison of Regal Hotels International Holdings's Beneish M-Score

For the Lodging subindustry, Regal Hotels International 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.

Regal Hotels International Holdings's Beneish M-Score Distribution in the Travel & Leisure Industry

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

* The bar in red indicates where Regal Hotels International Holdings's Beneish M-Score falls into.

Regal Hotels International 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 Regal Hotels International 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 * 1.913

0.528 * 1.2871

0.404 * 1.0327

0.892 * 0.9788

0.115 * 0.9774

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9656

4.679 * -0.082332

0.327 * 1.0993

-1.91

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was HK$959 Mil.
Revenue was HK$1,792 Mil.
Gross Profit was HK$652 Mil.
Total Current Assets was HK$4,913 Mil.
Total Assets was HK$28,519 Mil.
Property, Plant and Equipment(Net PPE) was HK$18,278 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$619 Mil.
Selling, General, & Admin. Expense(SGA) was HK$270 Mil.
Total Current Liabilities was HK$3,432 Mil.
Long-Term Debt & Capital Lease Obligation was HK$13,221 Mil.
Net Income was HK$-1,792 Mil.
Gross Profit was HK$0 Mil.
Cash Flow from Operations was HK$556 Mil.

Total Receivables was HK$512 Mil.
Revenue was HK$1,831 Mil.
Gross Profit was HK$858 Mil.
Total Current Assets was HK$5,905 Mil.
Total Assets was HK$30,248 Mil.
Property, Plant and Equipment(Net PPE) was HK$18,872 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$624 Mil.
Selling, General, & Admin. Expense(SGA) was HK$286 Mil.
Total Current Liabilities was HK$7,830 Mil.
Long-Term Debt & Capital Lease Obligation was HK$8,237 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)
	=	(959.4 / 1792.2)	/	(512.4 / 1831.1)
	=	0.53532	/	0.279832
	=	1.913

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)
	=	(857.8 / 1831.1)	/	(652.3 / 1792.2)
	=	0.468462	/	0.363966
	=	1.2871

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 - (4913.2 + 18278.3) / 28518.7)	/	(1 - (5904.5 + 18871.9) / 30247.8)
	=	0.186797	/	0.180886
	=	1.0327

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
	=	1792.2	/	1831.1
	=	0.9788

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))
	=	(623.8 / (623.8 + 18871.9))	/	(618.6 / (618.6 + 18278.3))
	=	0.031997	/	0.032736
	=	0.9774

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)
	=	(270.4 / 1792.2)	/	(286.1 / 1831.1)
	=	0.150876	/	0.156245
	=	0.9656

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)
	=	((13220.6 + 3432.4) / 28518.7)	/	((8236.9 + 7830.3) / 30247.8)
	=	0.583933	/	0.531186
	=	1.0993

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
	=	(-1791.9 - 0	-	556.1)	/	28518.7
	=	-0.082332

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.

Regal Hotels International Holdings has a M-score of -1.91 suggests that the company is unlikely to be a manipulator.

Regal Hotels International Holdings Beneish M-Score Related Terms

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Regal Hotels International Holdings (HKSE:00078) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » Regal Hotels International Holdings Ltd (HKSE:00078) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

68 Yee Wo Street, 11th Floor, Causeway Bay, Hong Kong, HKG

Website

https://www.regal.com.hk

Regal Hotels International Holdings Ltd is a holding company. The firm through its subsidiaries is engaged in hotel operation and management businesses. The company has six reportable segments which are Hotel Operation and Management and Hotel Ownership segment; Asset Management; Property Development and Investment; Financial Assets Investments; Aircraft Ownership and Leasing; and Others segment mainly comprise travel agency services. The company has a presence in Hong Kong, Mainland China, and others. Geographically, it receives maximum revenue from Hong Kong.

Regal Hotels International Holdings (HKSE:00078) Headlines

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