SK Innovation Co (XKRX:096775) Beneish M-Score : -2.21 (As of May. 21, 2024)

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What is SK Innovation 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 -2.21 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

XKRX:096775' s Beneish M-Score Range Over the Past 10 Years
Min: -7.45 Med: -2.31 Max: 40.69
Current: -2.21

During the past 13 years, the highest Beneish M-Score of SK Innovation Co was 40.69. The lowest was -7.45. And the median was -2.31.

SK Innovation Co Beneish M-Score Historical Data

The historical data trend for SK Innovation 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.

* Premium members only.

SK Innovation Co Beneish M-Score Chart

SK Innovation Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.71

-7.45

-2.43

-1.89

-2.62

SK Innovation Co Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Beneish M-Score	Get a 7-Day Free Trial															-2.16	-1.76	-2.29	-2.62	-2.21

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

For the Oil & Gas Refining & Marketing subindustry, SK Innovation 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 Innovation Co's Beneish M-Score Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, SK Innovation Co's Beneish M-Score distribution charts can be found below:

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

SK Innovation 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 Innovation 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 * 0

0.528 * 1.0915

0.404 * 4.7156

0.892 * 0.9514

0.115 * 0.0598

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.7282

4.679 * -0.049157

0.327 * 0.5646

-2.21

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was ₩0 Mil.
Revenue was 18855139.067 + 19529300.374 + 19889059.283 + 18727247.535 = ₩77,000,746 Mil.
Gross Profit was 1543110.148 + 786859.31 + 2220372.72 + 702298.457 = ₩5,252,641 Mil.
Total Current Assets was ₩35,456,050 Mil.
Total Assets was ₩86,384,116 Mil.
Property, Plant and Equipment(Net PPE) was ₩0 Mil.
Depreciation, Depletion and Amortization(DDA) was ₩1,559,210 Mil.
Selling, General, & Admin. Expense(SGA) was ₩2,248,822 Mil.
Total Current Liabilities was ₩30,870,504 Mil.
Long-Term Debt & Capital Lease Obligation was ₩0 Mil.
Net Income was -72602.532 + -81771.401 + 691285.736 + -222127.181 = ₩314,785 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ₩0 Mil.
Cash Flow from Operations was 0 + 2613931.446 + 443597.576 + 1503639.125 = ₩4,561,168 Mil.

Total Receivables was ₩8,692,919 Mil.
Revenue was 19142878.672 + 19136761.907 + 22753359.952 + 19905310.018 = ₩80,938,311 Mil.
Gross Profit was 1304487.477 + 145950.561 + 1519597.72 + 3056286.067 = ₩6,026,322 Mil.
Total Current Assets was ₩33,911,454 Mil.
Total Assets was ₩71,921,555 Mil.
Property, Plant and Equipment(Net PPE) was ₩29,018,280 Mil.
Depreciation, Depletion and Amortization(DDA) was ₩1,844,471 Mil.
Selling, General, & Admin. Expense(SGA) was ₩1,367,741 Mil.
Total Current Liabilities was ₩30,177,274 Mil.
Long-Term Debt & Capital Lease Obligation was ₩15,343,003 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 / 77000746.259)	/	(8692918.89 / 80938310.549)
	=	0	/	0.107402
	=	0

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)
	=	(6026321.825 / 80938310.549)	/	(5252640.635 / 77000746.259)
	=	0.074456	/	0.068215
	=	1.0915

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 - (35456049.637 + 0) / 86384115.636)	/	(1 - (33911453.943 + 29018280.321) / 71921554.824)
	=	0.589554	/	0.125023
	=	4.7156

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
	=	77000746.259	/	80938310.549
	=	0.9514

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))
	=	(1844471 / (1844471 + 29018280.321))	/	(1559210 / (1559210 + 0))
	=	0.059764	/	1
	=	0.0598

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)
	=	(2248822.495 / 77000746.259)	/	(1367740.818 / 80938310.549)
	=	0.029205	/	0.016899
	=	1.7282

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 + 30870503.756) / 86384115.636)	/	((15343003.015 + 30177274.282) / 71921554.824)
	=	0.357363	/	0.632916
	=	0.5646

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
	=	(314784.622 - 0	-	4561168.147)	/	86384115.636
	=	-0.049157

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 Innovation Co has a M-score of -2.21 suggests that the company is unlikely to be a manipulator.

SK Innovation Co Beneish M-Score Related Terms

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SK Innovation Co (XKRX:096775) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » SK Innovation Co Ltd (XKRX:096775) » Definitions » Beneish M-Score

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096770:Korea

Address

SK Building, 26, Jong-ro, Jongno-gu, Seoul, KOR

Website

http://www.skinnovation.com

SK Innovation Co Ltd is a global energy and chemical company. It operates in petroleum production, refining, chemicals, and lubricants. Operations are divided into four segments: Petroleum, Petrochemicals, Lubricants, and Others. The Petroleum segment provides majority of the revenue for the group. SK engages in exploration and production activities around the world. Petroleum products like gasoline, diesel, and asphalt are produced at its refineries in Korea. The business has a network of gas stations with a paid membership service. Additional subsidiaries under the Petroleum segment provide customized service information for freight truck business operators and a website for enterprise customers of SK Energy.

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