Luokung Technology Corp.
LKCO Communication Services Advertising Agencies
Luokung Technology Corp.’s revenue for fiscal 2023 (year ended December 2023) was $10.2 million, down 89.1% from fiscal 2022. Operating cash flow growth for three consecutive years.
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Luokung Technology Corp. (LKCO) Beneish M-score
Luokung Technology Corp.'s Beneish M-score for fiscal 2023 is −28.42; values above −1.78 are the model's flag for possible earnings manipulation — a statistical screen, not a finding.
Beneish M-score, annual
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Annual newest first
| Period | Beneish M-score | Change (points) |
|---|---|---|
| FY2023 | −28.42 | (25.38) |
| FY2022 | −3.04 | (5.99) |
| FY2021 | 2.95 | 5.25 |
| FY2020 | −2.30 | (0.98) |
| FY2019 | −1.32 | (0.86) |
| FY2018 | −0.46 | — |
How fiscal 2023’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Days’ sales in receivables index | 1.39 | — | 1.28 | |
| Gross margin index | 0.37 | — | 0.20 | |
| Asset quality index | 1.07 | — | 0.43 | |
| Sales growth index | 0.11 | — | 0.10 | |
| Depreciation index | 0.90 | — | 0.10 | |
| SG&A index | 48.59 | — | −8.36 | |
| Total accruals to total assets | (3.38) | — | −15.82 | |
| Leverage index | 4.63 | — | −1.51 | |
| Beneish M-score | Low — no pattern the model associates with manipulation | −28.42 | ||
How the Beneish M-score works
M = −4.84 + 0.920 × DSRI + 0.528 × GMI + 0.404 × AQI + 0.892 × SGI + 0.115 × DEPI − 0.172 × SGAI + 4.679 × TATA − 0.327 × LVGI (Beneish, 1999): eight changes in the accounts from one fiscal year to the next, which the model weighs for the pattern seen in companies that later restated their earnings. Higher is worse.
| below −2.22 | Low — no pattern the model associates with manipulation |
|---|---|
| −2.22 to −1.78 | Elevated |
| above −1.78 | Flagged by the model |
−1.78 is the cut-off usually quoted from the paper, −2.22 a common conservative one. A statistical screen, not a finding of wrongdoing.
When asset quality, depreciation or SG&A cannot be worked out, that index is set to 1, as Beneish did, and the breakdown says so; with all three missing there is no score. Depreciation includes amortisation, and asset quality leaves out securities. Not worked out for banks, insurers and REITs.
Beneish M-score against peers
| Company | Beneish M-score |
|---|---|
| LKCO Luokung Technology Corp. | −28.4× |
| BAOS Baosheng Media Group Holdings Limited compare | −5.6× |
| TULP Bloomia Holdings, Inc. compare | −2.7× |
| KRKR 36Kr Holdings Inc. Sponsored ADR compare | −2.7× |
| CHR Cheer Holding, Inc. compare | −2.3× |
| CNET ZW Data Action Technologies Inc. compare | −2.2× |
| WIMI WiMi Hologram Cloud Inc. compare | −1.5× |
| TDIC Dreamland Limited compare | 8.5× |
| YDKG Yueda Digital Holding compare | — |
What Beneish M-score is
The Beneish M-Score combines eight year-on-year changes in the accounts into a statistical screen for patterns seen in companies that overstated earnings.
−4.84 + 0.920 × DSRI + 0.528 × GMI + 0.404 × AQI + 0.892 × SGI + 0.115 × DEPI − 0.172 × SGAI + 4.679 × TATA − 0.327 × LVGI