Trans Asia Hotels (COL:TRAN.N0000) Beneish M-Score : -1.53 (As of May. 20, 2024)

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What is Trans Asia Hotels 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.

Warning Sign:

Beneish M-Score -1.53 higher than -1.78, which implies that the company might have manipulated its financial results.

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

COL:TRAN.N0000' s Beneish M-Score Range Over the Past 10 Years
Min: -3.66 Med: -2.31 Max: -0.95
Current: -1.53

During the past 13 years, the highest Beneish M-Score of Trans Asia Hotels was -0.95. The lowest was -3.66. And the median was -2.31.

Trans Asia Hotels Beneish M-Score Historical Data

The historical data trend for Trans Asia Hotels'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.

Trans Asia Hotels Beneish M-Score Chart

Trans Asia Hotels Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Beneish M-Score

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-2.14

-2.58

-3.66

-0.95

-1.89

Trans Asia Hotels Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Beneish M-Score	Get a 7-Day Free Trial															-2.04	-1.89	-1.88	-1.76	-1.53

Competitive Comparison of Trans Asia Hotels's Beneish M-Score

For the Lodging subindustry, Trans Asia Hotels'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.

Trans Asia Hotels's Beneish M-Score Distribution in the Travel & Leisure Industry

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

* The bar in red indicates where Trans Asia Hotels's Beneish M-Score falls into.

Trans Asia Hotels 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 Trans Asia Hotels 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 * 1.6508

0.528 * 0.8451

0.404 * 0.9618

0.892 * 1.3759

0.115 * 0.9108

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9266

4.679 * 0.023183

0.327 * 1.0079

-1.53

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was රු541 Mil.
Revenue was 1270.701 + 1106.97 + 932.755 + 1110.328 = රු4,421 Mil.
Gross Profit was 647.632 + 514.731 + 387.135 + 559.065 = රු2,109 Mil.
Total Current Assets was රු950 Mil.
Total Assets was රු8,971 Mil.
Property, Plant and Equipment(Net PPE) was රු4,851 Mil.
Depreciation, Depletion and Amortization(DDA) was රු203 Mil.
Selling, General, & Admin. Expense(SGA) was රු1,130 Mil.
Total Current Liabilities was රු2,243 Mil.
Long-Term Debt & Capital Lease Obligation was රු0 Mil.
Net Income was 85.534 + 12.889 + -70.514 + 247.699 = රු276 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = රු0 Mil.
Cash Flow from Operations was 146.979 + 68.149 + -109.801 + -37.686 = රු68 Mil.

Total Receivables was රු238 Mil.
Revenue was 1035.774 + 727.194 + 695.729 + 754.236 = රු3,213 Mil.
Gross Profit was 421.069 + 261.371 + 255.278 + 357.392 = රු1,295 Mil.
Total Current Assets was රු655 Mil.
Total Assets was රු8,057 Mil.
Property, Plant and Equipment(Net PPE) was රු4,442 Mil.
Depreciation, Depletion and Amortization(DDA) was රු168 Mil.
Selling, General, & Admin. Expense(SGA) was රු887 Mil.
Total Current Liabilities was රු1,781 Mil.
Long-Term Debt & Capital Lease Obligation was රු218 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)
	=	(540.961 / 4420.754)	/	(238.168 / 3212.933)
	=	0.122368	/	0.074128
	=	1.6508

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)
	=	(1295.11 / 3212.933)	/	(2108.563 / 4420.754)
	=	0.403093	/	0.476969
	=	0.8451

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 - (950.388 + 4851.111) / 8970.851)	/	(1 - (655.357 + 4442.192) / 8057.287)
	=	0.353294	/	0.367337
	=	0.9618

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
	=	4420.754	/	3212.933
	=	1.3759

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))
	=	(168.287 / (168.287 + 4442.192))	/	(202.537 / (202.537 + 4851.111))
	=	0.036501	/	0.040077
	=	0.9108

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)
	=	(1130.388 / 4420.754)	/	(886.636 / 3212.933)
	=	0.2557	/	0.275958
	=	0.9266

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)
	=	((0 + 2243.476) / 8970.851)	/	((218.25 + 1781.062) / 8057.287)
	=	0.250085	/	0.248137
	=	1.0079

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
	=	(275.608 - 0	-	67.641)	/	8970.851
	=	0.023183

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.

Trans Asia Hotels has a M-score of -1.53 signals that the company is likely to be a manipulator.

Trans Asia Hotels Beneish M-Score Related Terms

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Trans Asia Hotels (COL:TRAN.N0000) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » Trans Asia Hotels PLC (COL:TRAN.N0000) » Definitions » Beneish M-Score

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Traded in Other Exchanges

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Address

115, Sir Chittampalam A. Gardiner Mawatha, Colombo, LKA, 02

Website

https://www.cinnamonhotels.com

Trans Asia Hotels PLC is a Sri Lanka-based company engaged in the hoteliers business. The company has two reportable segments namely Hotel and Investment properties. It generates maximum revenue from the Hotel segment. The company offers facilities such as soothing spas, ayurvedic treatment centers, rooms, bars, lounges, coffee shops, restaurants, and entertainment spaces combine with star-class service and inspired interiors, giving a heady combination of experiences that are refreshingly authentic.

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