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TRIP (Tripadvisor) Beneish M-Score : -2.68 (As of Oct. 29, 2024)


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What is Tripadvisor 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 -2.68 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

TRIP' s Beneish M-Score Range Over the Past 10 Years
Min: -3.28   Med: -2.87   Max: -1.96
Current: -2.68

During the past 13 years, the highest Beneish M-Score of Tripadvisor was -1.96. The lowest was -3.28. And the median was -2.87.


Tripadvisor Beneish M-Score Historical Data

The historical data trend for Tripadvisor'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.

Tripadvisor Beneish M-Score Chart

Tripadvisor Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -3.28 -2.59 -2.72 -2.94 -2.89

Tripadvisor Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
Beneish M-Score Get a 7-Day Free Trial 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 -2.84 -2.75 -2.89 -2.71 -2.68

Competitive Comparison of Tripadvisor's Beneish M-Score

For the Travel Services subindustry, Tripadvisor'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.


Tripadvisor's Beneish M-Score Distribution in the Travel & Leisure Industry

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

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



Tripadvisor 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 Tripadvisor 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 * 0.9468+0.528 * 1.0098+0.404 * 0.9762+0.892 * 1.0816+0.115 * 0.9894
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9505+4.679 * -0.047859-0.327 * 1.0174
=-2.68

* 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 (Jun24) TTM:Last Year (Jun23) TTM:
Total Receivables was $298 Mil.
Revenue was 497 + 395 + 390 + 533 = $1,815 Mil.
Gross Profit was 451 + 360 + 354 + 490 = $1,655 Mil.
Total Current Assets was $1,539 Mil.
Total Assets was $2,779 Mil.
Property, Plant and Equipment(Net PPE) was $208 Mil.
Depreciation, Depletion and Amortization(DDA) was $87 Mil.
Selling, General, & Admin. Expense(SGA) was $1,208 Mil.
Total Current Liabilities was $916 Mil.
Long-Term Debt & Capital Lease Obligation was $901 Mil.
Net Income was 24 + -59 + 32 + 27 = $24 Mil.
Non Operating Income was 0 + -3 + -5 + -20 = $-28 Mil.
Cash Flow from Operations was 51 + 139 + -19 + 14 = $185 Mil.
Total Receivables was $291 Mil.
Revenue was 494 + 371 + 354 + 459 = $1,678 Mil.
Gross Profit was 453 + 342 + 323 + 427 = $1,545 Mil.
Total Current Assets was $1,478 Mil.
Total Assets was $2,734 Mil.
Property, Plant and Equipment(Net PPE) was $216 Mil.
Depreciation, Depletion and Amortization(DDA) was $89 Mil.
Selling, General, & Admin. Expense(SGA) was $1,175 Mil.
Total Current Liabilities was $854 Mil.
Long-Term Debt & Capital Lease Obligation was $903 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)
=(298 / 1815) / (291 / 1678)
=0.164187 / 0.173421
=0.9468

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)
=(1545 / 1678) / (1655 / 1815)
=0.920739 / 0.911846
=1.0098

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 - (1539 + 208) / 2779) / (1 - (1478 + 216) / 2734)
=0.371357 / 0.380395
=0.9762

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
=1815 / 1678
=1.0816

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))
=(89 / (89 + 216)) / (87 / (87 + 208))
=0.291803 / 0.294915
=0.9894

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)
=(1208 / 1815) / (1175 / 1678)
=0.665565 / 0.700238
=0.9505

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)
=((901 + 916) / 2779) / ((903 + 854) / 2734)
=0.653832 / 0.642648
=1.0174

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
=(24 - -28 - 185) / 2779
=-0.047859

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.

Tripadvisor has a M-score of -2.68 suggests that the company is unlikely to be a manipulator.


Tripadvisor Beneish M-Score Related Terms

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Tripadvisor Business Description

Address
400 1st Avenue, Needham, MA, USA, 02494
Tripadvisor is the world's leading travel metasearch company. Its platform offers 1 billion reviews and information on about 8 million accommodations, restaurants, experiences, airlines, and cruises. In 2023, 58% of revenue came from the company's core Brand Tripadvisor segment, which includes hotel revenue generated through advertising on its metasearch platform. Viator, its experiences brand, was 41% of sales in 2023, and TheFork, its dining brand, represented 9% of revenue (about 8% of sales were intersegment, which are eliminated from consolidated revenue).
Executives
Seth J Kalvert officer: SVP, GC, Sec. C/O TRIPADVISOR, INC., 141 NEEDHAM STREET, NEWTON MA 02464
Michael Noonan officer: CFO & SVP C/O TRIPADVISOR, INC., 400 1ST AVENUE, NEEDHAM MA 02494
Geoffrey Gouvalaris other: Chief Accounting Officer 400 1ST AVENUE, NEEDHAM MA 02494
Ernst 02494 Teunissen officer: Chief Financial Officer C/O TRIPADVISOR, INC., 400 1ST AVENUE, NEEDHAM HEIGHTS MA 02494
Matt Goldberg director, officer: CEO and President 2 WISCONSIN CIRCLE, 7TH FLOOR, CHEVY CHASE MD 20815
Jay C Hoag director 250 MIDDLEFIELD ROAD, MENLO PARK CA 94025
Gregory B Maffei director 12300 LIBERTY BLVD, ENGLEWOOD CO 80112
Kanika Soni officer: Chief Commercial Officer C/O TRIPADVISOR INC., 400 1ST AVENUE, NEEDHAM MA 02494
Liberty Tripadvisor Holdings, Inc. 10 percent owner 12300 LIBERTY BLVD, ENGLEWOOD CO 80112
Jie Sun director BUILDING 16#, NO. 968 JIN ZHONG ROAD, SHANGHAI F4 200335
Lindsay Nelson officer: Chief Experience&Brand Officer C/O TRIPADVISOR INC., 400 FIRST AVENUE, NEEDHAM MA 02494
Pemrose Corp director 350 MADISON AVENUE 8TH FLOOR, NEW YORK NY 10017
Certares Ltrip Llc director 350 MADISON AVENUE 8TH FLOOR, NEW YORK NY 10017
Certares Holdings (blockable) Llc director 350 MADISON AVENUE 8TH FLOOR, NEW YORK NY 10017
Certares Holdings Llc director 350 MADISON AVENUE 8TH FLOOR, NEW YORK NY 10017