Millenniumpthorne Hotels New Zealand (NZSE:MCK) Beneish M-Score : -2.09 (As of Jun. 03, 2024)

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What is Millenniumpthorne Hotels New Zealand 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 -2.09 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Millenniumpthorne Hotels New Zealand's Beneish M-Score or its related term are showing as below:

NZSE:MCK' s Beneish M-Score Range Over the Past 10 Years
Min: -9.53 Med: -2.55 Max: -2.03
Current: -2.09

During the past 13 years, the highest Beneish M-Score of Millenniumpthorne Hotels New Zealand was -2.03. The lowest was -9.53. And the median was -2.55.

Millenniumpthorne Hotels New Zealand Beneish M-Score Historical Data

The historical data trend for Millenniumpthorne Hotels New Zealand'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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Millenniumpthorne Hotels New Zealand Beneish M-Score Chart

Millenniumpthorne Hotels New Zealand Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.44

-3.06

-9.53

-2.63

-2.09

Millenniumpthorne Hotels New Zealand 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															-9.53	-	-2.63	-	-2.09

Competitive Comparison of Millenniumpthorne Hotels New Zealand's Beneish M-Score

For the Lodging subindustry, Millenniumpthorne Hotels New Zealand'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.

Millenniumpthorne Hotels New Zealand's Beneish M-Score Distribution in the Travel & Leisure Industry

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

* The bar in red indicates where Millenniumpthorne Hotels New Zealand's Beneish M-Score falls into.

Millenniumpthorne Hotels New Zealand 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 Millenniumpthorne Hotels New Zealand 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 * 1.3983

0.528 * 1.0975

0.404 * 1.167

0.892 * 1.0101

0.115 * 0.9868

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.1146

4.679 * 0.001942

0.327 * 1.2937

-2.09

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was NZ$20.4 Mil.
Revenue was NZ$145.7 Mil.
Gross Profit was NZ$77.8 Mil.
Total Current Assets was NZ$186.7 Mil.
Total Assets was NZ$746.8 Mil.
Property, Plant and Equipment(Net PPE) was NZ$263.1 Mil.
Depreciation, Depletion and Amortization(DDA) was NZ$8.7 Mil.
Selling, General, & Admin. Expense(SGA) was NZ$25.5 Mil.
Total Current Liabilities was NZ$50.2 Mil.
Long-Term Debt & Capital Lease Obligation was NZ$27.1 Mil.
Net Income was NZ$21.6 Mil.
Gross Profit was NZ$0.5 Mil.
Cash Flow from Operations was NZ$19.7 Mil.

Total Receivables was NZ$14.4 Mil.
Revenue was NZ$144.2 Mil.
Gross Profit was NZ$84.5 Mil.
Total Current Assets was NZ$212.2 Mil.
Total Assets was NZ$709.2 Mil.
Property, Plant and Equipment(Net PPE) was NZ$255.3 Mil.
Depreciation, Depletion and Amortization(DDA) was NZ$8.3 Mil.
Selling, General, & Admin. Expense(SGA) was NZ$22.7 Mil.
Total Current Liabilities was NZ$31.3 Mil.
Long-Term Debt & Capital Lease Obligation was NZ$25.5 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)
	=	(20.391 / 145.659)	/	(14.436 / 144.198)
	=	0.139991	/	0.100112
	=	1.3983

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)
	=	(84.511 / 144.198)	/	(77.78 / 145.659)
	=	0.586076	/	0.533987
	=	1.0975

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 - (186.739 + 263.051) / 746.79)	/	(1 - (212.216 + 255.279) / 709.186)
	=	0.397702	/	0.340801
	=	1.167

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
	=	145.659	/	144.198
	=	1.0101

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))
	=	(8.323 / (8.323 + 255.279))	/	(8.695 / (8.695 + 263.051))
	=	0.031574	/	0.031997
	=	0.9868

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)
	=	(25.532 / 145.659)	/	(22.678 / 144.198)
	=	0.175286	/	0.15727
	=	1.1146

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)
	=	((27.111 + 50.226) / 746.79)	/	((25.458 + 31.31) / 709.186)
	=	0.103559	/	0.080047
	=	1.2937

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
	=	(21.602 - 0.47	-	19.682)	/	746.79
	=	0.001942

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.

Millenniumpthorne Hotels New Zealand has a M-score of -2.09 suggests that the company is unlikely to be a manipulator.

Millenniumpthorne Hotels New Zealand Beneish M-Score Related Terms

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Millenniumpthorne Hotels New Zealand (NZSE:MCK) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » Millennium & Copthorne Hotels New Zealand Ltd (NZSE:MCK) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

MCKPA.PFD:New Zealand

Address

23 Customs Street East, Victoria Street West, Level 7, PO Box 5640,, Auckland, NZL, 1142

Website

https://www.millenniumhotels.com

Millennium & Copthorne Hotels New Zealand Ltd is engaged in the ownership and operation of hotels in New Zealand. In addition, the group is also involved in the residential development and sale of land in New Zealand and the development and sale of residential units in Australia. The operating segments of the group are Hotel operations which comprise income from the ownership and management of hotels, Residential land development, comprising the development and sale of land and Residential and commercial property development, comprising the development and sale of residential apartments. The majority of the revenue is generated from the Hotel operations segment. The company operates in the geographical areas of New Zealand and Australia.