Luokung Technology (Luokung Technology) Beneish M-Score : -4.07 (As of May. 22, 2024)

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What is Luokung Technology 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 -4.07 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

LKCO' s Beneish M-Score Range Over the Past 10 Years
Min: -4.07 Med: -0.25 Max: 102.81
Current: -4.07

During the past 13 years, the highest Beneish M-Score of Luokung Technology was 102.81. The lowest was -4.07. And the median was -0.25.

Luokung Technology Beneish M-Score Historical Data

The historical data trend for Luokung Technology'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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Luokung Technology Beneish M-Score Chart

Luokung Technology Annual Data

Trend

Sep13

Sep14

Sep15

Sep16

Sep17

Dec18

Dec19

Dec20

Dec21

Dec22

Beneish M-Score

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102.81

-1.88

-2.25

2.85

-4.07

Luokung Technology Semi-Annual Data
	Sep13	Mar14	Sep14	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23
Beneish M-Score	Get a 7-Day Free Trial															-	2.85	-	-4.07	-

Competitive Comparison of Luokung Technology's Beneish M-Score

For the Software - Application subindustry, Luokung Technology'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.

Luokung Technology's Beneish M-Score Distribution in the Software Industry

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

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

Luokung Technology 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 Luokung Technology 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 * 0.8219

0.528 * 0.6612

0.404 * 1.0497

0.892 * 0.6452

0.115 * 0.7887

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.1275

4.679 * -0.190128

0.327 * 1.0398

-4.07

This Year (Dec22) TTM:

Last Year (Dec21) TTM:

Total Receivables was $7.53 Mil.
Revenue was $93.59 Mil.
Gross Profit was $15.65 Mil.
Total Current Assets was $44.83 Mil.
Total Assets was $233.64 Mil.
Property, Plant and Equipment(Net PPE) was $6.25 Mil.
Depreciation, Depletion and Amortization(DDA) was $18.75 Mil.
Selling, General, & Admin. Expense(SGA) was $26.32 Mil.
Total Current Liabilities was $94.83 Mil.
Long-Term Debt & Capital Lease Obligation was $1.15 Mil.
Net Income was $-52.54 Mil.
Gross Profit was $9.75 Mil.
Cash Flow from Operations was $-17.87 Mil.

Total Receivables was $14.20 Mil.
Revenue was $145.07 Mil.
Gross Profit was $16.04 Mil.
Total Current Assets was $57.73 Mil.
Total Assets was $265.19 Mil.
Property, Plant and Equipment(Net PPE) was $10.07 Mil.
Depreciation, Depletion and Amortization(DDA) was $14.58 Mil.
Selling, General, & Admin. Expense(SGA) was $36.18 Mil.
Total Current Liabilities was $101.71 Mil.
Long-Term Debt & Capital Lease Obligation was $3.06 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)
	=	(7.527 / 93.593)	/	(14.195 / 145.068)
	=	0.080423	/	0.097851
	=	0.8219

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)
	=	(16.042 / 145.068)	/	(15.652 / 93.593)
	=	0.110583	/	0.167235
	=	0.6612

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 - (44.826 + 6.25) / 233.637)	/	(1 - (57.726 + 10.067) / 265.189)
	=	0.781387	/	0.74436
	=	1.0497

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
	=	93.593	/	145.068
	=	0.6452

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))
	=	(14.58 / (14.58 + 10.067))	/	(18.75 / (18.75 + 6.25))
	=	0.591553	/	0.75
	=	0.7887

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)
	=	(26.32 / 93.593)	/	(36.184 / 145.068)
	=	0.281218	/	0.249428
	=	1.1275

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)
	=	((1.149 + 94.832) / 233.637)	/	((3.064 + 101.709) / 265.189)
	=	0.410812	/	0.395088
	=	1.0398

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
	=	(-52.54 - 9.752	-	-17.871)	/	233.637
	=	-0.190128

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.

Luokung Technology has a M-score of -4.07 suggests that the company is unlikely to be a manipulator.

Luokung Technology Beneish M-Score Related Terms

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Luokung Technology (Luokung Technology) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Luokung Technology Corp (NAS:LKCO) » Definitions » Beneish M-Score

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Traded in Other Exchanges

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Address

No. 9, Guanghua Road, Miss. Qinyu Zhao B9-8, Block B, SOHO Phase II, Chaoyang District, Beijing, CHN, 100020

Website

https://www.luokung.com

Luokung Technology Corp is a mobile service and technology provider for the long-distance travel and railway Wi-Fi market in China. Its mobile application product Luokuang platform is a Location-based Service social content and service distribution platform. It offers personalized and precise services to long-distance travelers in two locations: on the train and at the destination. Its offerings include entertainment services including video and audio, digital reading material, games specific, and social services.