Skagi hf (OISE:VIS) Beneish M-Score : -4.91 (As of Apr. 15, 2025)

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What is Skagi hf Beneish M-Score?

Note: Financial institutions were excluded from the sample in Beneish paper when calculating Beneish M-Score. Thus, the prediction might not fit banks and insurance companies.

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 -4.91 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

OISE:VIS' s Beneish M-Score Range Over the Past 10 Years
Min: -4.91 Med: -2.57 Max: 0.62
Current: -4.91

During the past 13 years, the highest Beneish M-Score of Skagi hf was 0.62. The lowest was -4.91. And the median was -2.57.

Skagi hf 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 Skagi hf 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 * 1.3097

0.528 * 1

0.404 * 1.0006

0.892 * 1.1696

0.115 * 1.3402

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 20.1031

4.679 * 0.101228

0.327 * 1.2889

-4.91

* 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 (Dec24) TTM:

Last Year (Dec23) TTM:

Total Receivables was kr1,509 Mil.
Revenue was 6842.009 + 8171.702 + 7630.207 + 7502.704 = kr30,147 Mil.
Gross Profit was 6842.009 + 8171.702 + 7630.207 + 7502.704 = kr30,147 Mil.
Total Current Assets was kr0 Mil.
Total Assets was kr79,183 Mil.
Property, Plant and Equipment(Net PPE) was kr348 Mil.
Depreciation, Depletion and Amortization(DDA) was kr545 Mil.
Selling, General, & Admin. Expense(SGA) was kr664 Mil.
Total Current Liabilities was kr0 Mil.
Long-Term Debt & Capital Lease Obligation was kr11,243 Mil.
Net Income was 1562.788 + 425.807 + 136.65 + 138.965 = kr2,264 Mil.
Non Operating Income was -329.27 + 0 + 0 + 99.325 = kr-230 Mil.
Cash Flow from Operations was -1894.18 + -3165.773 + 151.258 + -612.665 = kr-5,521 Mil.

Total Receivables was kr985 Mil.
Revenue was 6734.232 + 6713.299 + 6331.299 + 5996.182 = kr25,775 Mil.
Gross Profit was 6734.232 + 6713.299 + 6331.299 + 5996.182 = kr25,775 Mil.
Total Current Assets was kr0 Mil.
Total Assets was kr65,468 Mil.
Property, Plant and Equipment(Net PPE) was kr330 Mil.
Depreciation, Depletion and Amortization(DDA) was kr1,477 Mil.
Selling, General, & Admin. Expense(SGA) was kr28 Mil.
Total Current Liabilities was kr0 Mil.
Long-Term Debt & Capital Lease Obligation was kr7,212 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)
	=	(1509.238 / 30146.622)	/	(985.238 / 25775.012)
	=	0.050063	/	0.038225
	=	1.3097

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)
	=	(25775.012 / 25775.012)	/	(30146.622 / 30146.622)
	=	1	/	1
	=	1

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 - (0 + 348.369) / 79182.716)	/	(1 - (0 + 329.532) / 65467.768)
	=	0.9956	/	0.994967
	=	1.0006

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
	=	30146.622	/	25775.012
	=	1.1696

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))
	=	(1477.464 / (1477.464 + 329.532))	/	(545.118 / (545.118 + 348.369))
	=	0.817635	/	0.610102
	=	1.3402

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)
	=	(664.235 / 30146.622)	/	(28.254 / 25775.012)
	=	0.022033	/	0.001096
	=	20.1031

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)
	=	((11242.985 + 0) / 79182.716)	/	((7211.865 + 0) / 65467.768)
	=	0.141988	/	0.110159
	=	1.2889

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
	=	(2264.21 - -229.945	-	-5521.36)	/	79182.716
	=	0.101228

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.

Skagi hf has a M-score of -4.91 suggests that the company is unlikely to be a manipulator.

Skagi hf Beneish M-Score Related Terms

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Skagi hf Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » Skagi hf (OISE:VIS) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

Armula 3, Reykjavik, ISL, 108

Website

https://www.skagi.is

Skagi hf is engaged in financial services sector. The Group operates through three operating segments: Insurance Operations, Insurance Investments, and Financial Services. Insurance Operations comprises the core insurance activities, including the underwriting of life, health, and general insurance products. Insurance Investments includes the management of assets backing insurance liabilities as well as proprietary investment activities. The Financial Services segment comprises activities such as asset management, loans to customers, and other noninsurance financial products. Key revenue is generated from Insurance operations.