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Ionik (TSXV:INIK) Beneish M-Score : -2.23 (As of Mar. 16, 2025)


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What is Ionik 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 -2.23 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

TSXV:INIK' s Beneish M-Score Range Over the Past 10 Years
Min: -3.21   Med: -2.21   Max: 4.24
Current: -2.23

During the past 5 years, the highest Beneish M-Score of Ionik was 4.24. The lowest was -3.21. And the median was -2.21.


Ionik Beneish M-Score Historical Data

The historical data trend for Ionik'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.

Ionik Beneish M-Score Chart

Ionik Annual Data
Trend Dec19 Dec20 Dec21 Sep22 Dec23
Beneish M-Score
- - -2.52 1.07 -2.19

Ionik Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 -0.63 -2.19 -2.86 -3.21 -2.23

Competitive Comparison of Ionik's Beneish M-Score

For the Advertising Agencies subindustry, Ionik'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.


Ionik's Beneish M-Score Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Ionik's Beneish M-Score distribution charts can be found below:

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



Ionik 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 Ionik 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 * 1.5747+0.528 * 1.1021+0.404 * 0.9427+0.892 * 1.1513+0.115 * 0.9205
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9571+4.679 * -0.073599-0.327 * 1.2892
=-2.23

* 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 (Sep24) TTM:Last Year (Sep23) TTM:
Total Receivables was C$52.4 Mil.
Revenue was 59.647 + 61.404 + 57.236 + 36.771 = C$215.1 Mil.
Gross Profit was 23.187 + 22.864 + 19.481 + 13.869 = C$79.4 Mil.
Total Current Assets was C$76.4 Mil.
Total Assets was C$277.8 Mil.
Property, Plant and Equipment(Net PPE) was C$1.2 Mil.
Depreciation, Depletion and Amortization(DDA) was C$18.7 Mil.
Selling, General, & Admin. Expense(SGA) was C$50.4 Mil.
Total Current Liabilities was C$110.4 Mil.
Long-Term Debt & Capital Lease Obligation was C$130.7 Mil.
Net Income was -4.588 + -0.422 + -4.405 + -59.79 = C$-69.2 Mil.
Non Operating Income was -0.375 + 3.503 + -0.074 + -58.49 = C$-55.4 Mil.
Cash Flow from Operations was 2.697 + -4.454 + 6.706 + 1.728 = C$6.7 Mil.
Total Receivables was C$28.9 Mil.
Revenue was 50.896 + 51.983 + 49.928 + 33.984 = C$186.8 Mil.
Gross Profit was 20.391 + 21.53 + 19.028 + 15.058 = C$76.0 Mil.
Total Current Assets was C$44.3 Mil.
Total Assets was C$199.9 Mil.
Property, Plant and Equipment(Net PPE) was C$2.8 Mil.
Depreciation, Depletion and Amortization(DDA) was C$18.2 Mil.
Selling, General, & Admin. Expense(SGA) was C$45.7 Mil.
Total Current Liabilities was C$59.6 Mil.
Long-Term Debt & Capital Lease Obligation was C$75.0 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)
=(52.445 / 215.058) / (28.927 / 186.791)
=0.243864 / 0.154863
=1.5747

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)
=(76.007 / 186.791) / (79.401 / 215.058)
=0.406909 / 0.369207
=1.1021

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 - (76.44 + 1.196) / 277.803) / (1 - (44.283 + 2.831) / 199.923)
=0.720536 / 0.764339
=0.9427

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
=215.058 / 186.791
=1.1513

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))
=(18.155 / (18.155 + 2.831)) / (18.669 / (18.669 + 1.196))
=0.865101 / 0.939794
=0.9205

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)
=(50.38 / 215.058) / (45.719 / 186.791)
=0.234262 / 0.24476
=0.9571

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)
=((130.739 + 110.409) / 277.803) / ((75.015 + 59.595) / 199.923)
=0.868054 / 0.673309
=1.2892

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
=(-69.205 - -55.436 - 6.677) / 277.803
=-0.073599

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.

Ionik has a M-score of -2.23 suggests that the company is unlikely to be a manipulator.


Ionik Business Description

Traded in Other Exchanges
Address
1 University Avenue, 3rd Floor, Toronto, ON, CAN, M5J 2P1
Ionik Corp is a data-driven performance marketing technology company focused on assembling the effective and complete suite of advertising, marketing, and monetization solutions for brands, advertisers, and publishers while building an extensive proprietary repository of opted-in first-party data.
Executives
Lois Lorrayne Norris Senior Officer
Jeffrey David Collins Senior Officer
Jonathan Paul Walsh Director
Robert Shaner Director or Senior Officer of Insider or Subsidiary (other than in 4,5,6)
Christopher Locke Director
Edward William Hastings Director, Senior Officer
Kevin Ferrell Senior Officer
Jurgen Cautreels Director or Senior Officer of Insider or Subsidiary (other than in 4,5,6)
James Mansfield Director or Senior Officer of 10% Security Holder, Director or Senior Officer of Insider or Subsidiary (other than in 4,5,6)
Michael Fitzgerald Director or Senior Officer of 10% Security Holder, Director or Senior Officer of Insider or Subsidiary (other than in 4,5,6)
Christopher James Schnarr Director, Senior Officer
Ronald Thomas Patterson Director
Michael James Haines Director or Senior Officer of 10% Security Holder

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