SK Telecom Co (BSP:S1KM34) Beneish M-Score : -3.09 (As of Dec. 14, 2024)

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What is SK Telecom Co 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 -3.09 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

BSP:S1KM34' s Beneish M-Score Range Over the Past 10 Years
Min: -3.6 Med: -2.99 Max: -2.54
Current: -3.09

During the past 13 years, the highest Beneish M-Score of SK Telecom Co was -2.54. The lowest was -3.60. And the median was -2.99.

SK Telecom Co Beneish M-Score Historical Data

The historical data trend for SK Telecom Co'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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SK Telecom Co Beneish M-Score Chart

SK Telecom Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.69

-2.89

-3.36

-3.14

-3.11

SK Telecom Co Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
Beneish M-Score	Get a 7-Day Free Trial															-3.13	-3.11	-3.06	-2.98	-3.09

Competitive Comparison of SK Telecom Co's Beneish M-Score

For the Telecom Services subindustry, SK Telecom Co'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.

SK Telecom Co's Beneish M-Score Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, SK Telecom Co's Beneish M-Score distribution charts can be found below:

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

SK Telecom Co 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 SK Telecom Co 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 * 1.081

0.528 * 0.9695

0.404 * 0.9541

0.892 * 1.0326

0.115 * 1.0617

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.774

4.679 * -0.120667

0.327 * 1.0159

-2.93

This Year (Sep24) TTM:

Last Year (Sep23) TTM:

Total Receivables was R$11,161 Mil.
Revenue was 18860.743 + 17272.197 + 16732.81 + 17006.22 = R$69,872 Mil.
Gross Profit was 16343.295 + 17272.197 + 14595.644 + 14679.478 = R$62,891 Mil.
Total Current Assets was R$30,677 Mil.
Total Assets was R$122,653 Mil.
Property, Plant and Equipment(Net PPE) was R$50,426 Mil.
Depreciation, Depletion and Amortization(DDA) was R$14,440 Mil.
Selling, General, & Admin. Expense(SGA) was R$8,930 Mil.
Total Current Liabilities was R$33,823 Mil.
Long-Term Debt & Capital Lease Obligation was R$30,008 Mil.
Net Income was 1119.068 + 1317.791 + 1319.991 + 661.119 = R$4,418 Mil.
Non Operating Income was -418.554 + 0 + 99.373 + -107.485 = R$-427 Mil.
Cash Flow from Operations was 5940.717 + 4960.764 + 4183.488 + 4559.812 = R$19,645 Mil.

Total Receivables was R$9,999 Mil.
Revenue was 16296.333 + 16112.444 + 17437.137 + 17819.548 = R$67,665 Mil.
Gross Profit was 14331.609 + 14198.964 + 15209.048 + 15307.405 = R$59,047 Mil.
Total Current Assets was R$24,484 Mil.
Total Assets was R$110,599 Mil.
Property, Plant and Equipment(Net PPE) was R$46,845 Mil.
Depreciation, Depletion and Amortization(DDA) was R$14,499 Mil.
Selling, General, & Admin. Expense(SGA) was R$11,173 Mil.
Total Current Liabilities was R$24,157 Mil.
Long-Term Debt & Capital Lease Obligation was R$32,500 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)
	=	(11160.971 / 69871.97)	/	(9998.839 / 67665.462)
	=	0.159735	/	0.147769
	=	1.081

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)
	=	(59047.026 / 67665.462)	/	(62890.614 / 69871.97)
	=	0.872632	/	0.900084
	=	0.9695

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 - (30677.104 + 50425.644) / 122653.107)	/	(1 - (24484.009 + 46845.246) / 110598.594)
	=	0.338763	/	0.355062
	=	0.9541

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
	=	69871.97	/	67665.462
	=	1.0326

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))
	=	(14499.143 / (14499.143 + 46845.246))	/	(14439.776 / (14439.776 + 50425.644))
	=	0.236356	/	0.222611
	=	1.0617

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)
	=	(8930.016 / 69871.97)	/	(11172.698 / 67665.462)
	=	0.127805	/	0.165117
	=	0.774

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)
	=	((30008.289 + 33822.588) / 122653.107)	/	((32500.002 + 24156.765) / 110598.594)
	=	0.520418	/	0.512274
	=	1.0159

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
	=	(4417.969 - -426.666	-	19644.781)	/	122653.107
	=	-0.120667

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.

SK Telecom Co has a M-score of -2.93 suggests that the company is unlikely to be a manipulator.

SK Telecom Co Beneish M-Score Related Terms

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SK Telecom Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » SK Telecom Co Ltd (BSP:S1KM34) » Definitions » Beneish M-Score

Traded in Other Exchanges

SKM:USA 017670:Korea KMBA:Germany KMBA:Germany

Address

SK T-Tower, 65, Eulji-ro, Jung-gu, Seoul, KOR, 04539

Website

https://www.sktelecom.com

SK Telecom is South Korea's largest wireless telecom operator, with 31 million mobile customers. The firm also owns SK Broadband (formerly Hanaro Telecom), which has 6.9 million broadband customers and 9.5 million pay TV customers (6.8 million IPTV and 2.7 million Cable TV). While the firm also purchased stakes in businesses in security and semiconductor memory production as well as developing e-commerce and internet platform businesses, these were all spun off into the separate, SK Square business in November 2021. The company was formed after SK Group purchased KT's mobile business in 1994.

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