Sk Telecom Co Stock Beneish M Score

SKM Stock  USD 21.86  0.05  0.23%   
This module uses fundamental data of SK Telecom to approximate the value of its Beneish M Score. SK Telecom M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Check out SK Telecom Piotroski F Score and SK Telecom Altman Z Score analysis.
  
At this time, SK Telecom's Long Term Debt is very stable compared to the past year. As of the 16th of February 2025, Cash Flow To Debt Ratio is likely to grow to 0.73, while Short and Long Term Debt Total is likely to drop about 7 T. At this time, SK Telecom's EV To Sales is very stable compared to the past year. As of the 16th of February 2025, ROIC is likely to grow to 0.1, while Book Value Per Share is likely to drop about 42.7 K.
At this time, it appears that SK Telecom is an unlikely manipulator. The earnings manipulation may begin if SK Telecom's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by SK Telecom executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of SK Telecom's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.72
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

1.65

Focus
Asset Quality

0.58

Focus
Expense Coverage

1.34

Focus
Gross Margin Strengs

0.96

Focus
Accruals Factor

1.34

Focus
Depreciation Resistance

1.0

Focus
Net Sales Growth

0.71

Focus
Financial Leverage Condition

0.84

Focus

SK Telecom Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if SK Telecom's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Net Receivables3.4 T2.9 T
Fairly Up
Slightly volatile
Total Revenue14.5 T20.2 T
Way Down
Slightly volatile
Total Assets25 T34.6 T
Way Down
Slightly volatile
Total Current Assets5.7 T7.6 T
Way Down
Slightly volatile
Non Current Assets Total20.3 T27.1 T
Way Down
Slightly volatile
Property Plant Equipment16.1 T15.3 T
Sufficiently Up
Slightly volatile
Depreciation And Amortization4.5 T4.3 T
Sufficiently Up
Slightly volatile
Selling General Administrative2.3 T2.4 T
Sufficiently Down
Pretty Stable
Total Current Liabilities5.2 TT
Way Down
Slightly volatile
Non Current Liabilities Total7.2 T13 T
Way Down
Slightly volatile
Net DebtT10.6 T
Way Down
Slightly volatile
Short Term Debt1.4 T2.3 T
Way Down
Slightly volatile
Long Term DebtT8.5 T
Sufficiently Up
Slightly volatile
Operating IncomeTT
Fairly Up
Slightly volatile
Total Cash From Operating Activities4.1 T5.7 T
Way Down
Slightly volatile
Short Term Investments322.2 B339.2 B
Notably Down
Pretty Stable
Gross Profit Margin0.230.24
Sufficiently Down
Slightly volatile

SK Telecom Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between SK Telecom's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards SK Telecom in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find SK Telecom's degree of accounting gimmicks and manipulations.

About SK Telecom Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Other Operating Expenses

12.48 Trillion

At this time, SK Telecom's Other Operating Expenses is very stable compared to the past year.

SK Telecom Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as SK Telecom. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
202020212022202320242025 (projected)
Net Receivables3.4T2.6T2.6T2.5T2.9T3.4T
Total Revenue18.6T16.7T17.3T17.6T20.2T14.5T
Total Assets47.9T30.9T31.3T30.1T34.6T25.0T
Total Current Assets8.8T6.4T7.2T6.6T7.6T5.7T
Net Debt10.8T9.5T9.2T9.2T10.6T6.0T
Short Term Debt1.4T1.8T2.5T2.0T2.3T1.4T
Long Term Debt9.7T7.4T7.2T7.4T8.5T9.0T
Operating Income2.4T2.0T1.6T1.8T2.0T2.0T
Investments(4.3T)(135.0B)(2.8T)(3.0T)(2.7T)(2.9T)
Gross Profit Margin0.840.860.870.210.240.23

SK Telecom ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, SK Telecom's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to SK Telecom's managers, analysts, and investors.
Environmental
Governance
Social

About SK Telecom Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze SK Telecom Co's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of SK Telecom using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of SK Telecom Co based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.

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When determining whether SK Telecom is a strong investment it is important to analyze SK Telecom's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact SK Telecom's future performance. For an informed investment choice regarding SKM Stock, refer to the following important reports:
Is Wireless Telecommunication Services space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of SK Telecom. If investors know SKM will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about SK Telecom listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
1.029
Dividend Share
3.5 K
Earnings Share
1.99
Revenue Per Share
46.1 K
Quarterly Revenue Growth
(0)
The market value of SK Telecom is measured differently than its book value, which is the value of SKM that is recorded on the company's balance sheet. Investors also form their own opinion of SK Telecom's value that differs from its market value or its book value, called intrinsic value, which is SK Telecom's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because SK Telecom's market value can be influenced by many factors that don't directly affect SK Telecom's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between SK Telecom's value and its price as these two are different measures arrived at by different means. Investors typically determine if SK Telecom is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, SK Telecom's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.