SKKY (Skkynet Cloud Systems) Beneish M-Score : -3.89 (As of Dec. 14, 2024)

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What is Skkynet Cloud Systems 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 -3.89 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

SKKY' s Beneish M-Score Range Over the Past 10 Years
Min: -12.64 Med: -5.86 Max: 2.82
Current: -3.89

During the past 13 years, the highest Beneish M-Score of Skkynet Cloud Systems was 2.82. The lowest was -12.64. And the median was -5.86.

Skkynet Cloud Systems Beneish M-Score Historical Data

The historical data trend for Skkynet Cloud Systems'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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Skkynet Cloud Systems Beneish M-Score Chart

Skkynet Cloud Systems Annual Data

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Beneish M-Score

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-5.86

-4.84

Skkynet Cloud Systems Quarterly Data
	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24	Apr24	Jul24
Beneish M-Score	Get a 7-Day Free Trial															-	-	-	-	-3.89

Competitive Comparison of Skkynet Cloud Systems's Beneish M-Score

For the Software - Infrastructure subindustry, Skkynet Cloud Systems'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.

Skkynet Cloud Systems's Beneish M-Score Distribution in the Software Industry

For the Software industry and Technology sector, Skkynet Cloud Systems's Beneish M-Score distribution charts can be found below:

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

Skkynet Cloud Systems 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 Skkynet Cloud Systems 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 * 0.6466

0.528 * 1

0.404 * 0

0.892 * 1.0717

0.115 * 0.7778

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9467

4.679 * -0.164843

0.327 * 0.8725

-3.89

This Year (Jul24) TTM:

Last Year (Jul23) TTM:

Total Receivables was $0.23 Mil.
Revenue was 0.666 + 0.602 + 0.631 + 0.627 = $2.53 Mil.
Gross Profit was 0.666 + 0.602 + 0.631 + 0.627 = $2.53 Mil.
Total Current Assets was $1.37 Mil.
Total Assets was $1.37 Mil.
Property, Plant and Equipment(Net PPE) was $0.00 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.00 Mil.
Selling, General, & Admin. Expense(SGA) was $2.51 Mil.
Total Current Liabilities was $0.62 Mil.
Long-Term Debt & Capital Lease Obligation was $0.00 Mil.
Net Income was 0.122 + -0.167 + 0.021 + 0.068 = $0.04 Mil.
Non Operating Income was 0.012 + 0.007 + -0.017 + 0 = $0.00 Mil.
Cash Flow from Operations was 0.092 + 0.107 + 0 + 0.069 = $0.27 Mil.

Total Receivables was $0.33 Mil.
Revenue was 0.63 + 0.625 + 0.492 + 0.61 = $2.36 Mil.
Gross Profit was 0.63 + 0.625 + 0.492 + 0.61 = $2.36 Mil.
Total Current Assets was $1.20 Mil.
Total Assets was $1.20 Mil.
Property, Plant and Equipment(Net PPE) was $0.01 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.00 Mil.
Selling, General, & Admin. Expense(SGA) was $2.47 Mil.
Total Current Liabilities was $0.62 Mil.
Long-Term Debt & Capital Lease Obligation was $0.00 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)
	=	(0.228 / 2.526)	/	(0.329 / 2.357)
	=	0.090261	/	0.139584
	=	0.6466

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)
	=	(2.357 / 2.357)	/	(2.526 / 2.526)
	=	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 - (1.368 + 0.003) / 1.371)	/	(1 - (1.198 + 0.005) / 1.204)
	=	0	/	0.000831
	=	0

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
	=	2.526	/	2.357
	=	1.0717

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))
	=	(0.004 / (0.004 + 0.005))	/	(0.004 / (0.004 + 0.003))
	=	0.444444	/	0.571429
	=	0.7778

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)
	=	(2.509 / 2.526)	/	(2.473 / 2.357)
	=	0.99327	/	1.049215
	=	0.9467

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 + 0.616) / 1.371)	/	((0 + 0.62) / 1.204)
	=	0.449307	/	0.51495
	=	0.8725

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
	=	(0.044 - 0.002	-	0.268)	/	1.371
	=	-0.164843

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.

Skkynet Cloud Systems has a M-score of -3.89 suggests that the company is unlikely to be a manipulator.

Skkynet Cloud Systems Beneish M-Score Related Terms

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Skkynet Cloud Systems Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Skkynet Cloud Systems Inc (OTCPK:SKKY) » Definitions » Beneish M-Score

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Traded in Other Exchanges

N/A

Address

2233 Argentina Road, Suite 302, Mississauga, ON, CAN, L5N 2X7

Website

https://www.skkynet.com

Skkynet Cloud Systems Inc is an industrial middleware vendor company. It provides connectivity and data acquisition to a wide variety of industrial and office hardware and software products. The company's Skkynet Connected Systems platform includes the DataHub and Embedded Toolkit software. The company provides three types of cloud services: remotely hosted cloud systems and locally hosted cloud systems or a hybrid of the two. The business serves North America, Europe, Asia Pacific, South America and other regions.

Executives

Andrew S Thomas	director, 10 percent owner, officer: Chief Executive Officer	2233 ARGENTIA ROAD, SUITE 302, MISSISSAUGA A6 L5N 2X7
Paul Benford	director, 10 percent owner, officer: Chief Operating Officer	2233 ARGENTIA ROAD, SUITE 302, MISSISSAUGA A6 L5N 2X7
Lowell Thomas Holden	officer: Chief Financial Officer	631 US HWY 1, SUITE 407, NORTH PALM BEACH FL 33408
Paul E Thomas	director, 10 percent owner, officer: President	2233 ARGENTIA ROAD, SUITE 302, MISSISSAUGA A6 L5N 2X7
Xavier Eric Mesrobian	officer: VP Sales and Marketing	2233 ARGENTIA ROAD, SUITE 302, MISSISSAUGA A6 L5N 2X7
John X Adiletta	director	51 BOULDERWOOD DRIVE, BERNARDSVILLE NJ 07924
Kenneth W. Jennings	director	2233 ARGENTIA ROAD, SUITE 302, MISSISSAUGA A6 L5N 2X7
Norman Evans	director	5650 TOMKEN RD., UNIT 16, MISSISSAUGA A6 L4W 4P1
Michael R Thomas	other: Advisor	2233 ARGENTIA ROAD, SUITE 306, MISSISSAUGA A6 L5N 2X7