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Fomento Economico Mexicano SAB de CV (NYSE:FMX)
Beneish M-Score
0.00 (As of Today)

The zones of discrimination for M-Score is as such:

An M-Score of less than -2.22 suggests that the company is not an accounting manipulator.
An M-Score of greater than -2.22 signals that the company is likely an accounting manipulator.

Fomento Economico Mexicano SAB de CV has a M-score of signals that the company is a manipulator.

During the past 13 years, the highest Beneish M-Score of Fomento Economico Mexicano SAB de CV was -1.26. The lowest was -3.51. And the median was -2.60.


Definition

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Z-Score) or business trend (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 Fomento Economico Mexicano SAB de CV 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 * +0.528 * +0.404 * +0.892 * +0.115 *
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * +4.679 * -0.327 *
=

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $1,098 Mil.
Revenue was 4677.4988568 + 4852.96397747 + 2255.88187039 + 3764.81526118 = $15,551 Mil.
Gross Profit was 1832.97998064 + 1899.19375678 + 1034.15914684 + 1558.34854172 = $6,325 Mil.
Total Current Assets was $5,644 Mil.
Total Assets was $24,987 Mil.
Property, Plant and Equipment(Net PPE) was $4,534 Mil.
Depreciation, Depletion and Amortization(DDA) was $0 Mil.
Selling, General & Admin. Expense(SGA) was $4,415 Mil.
Total Current Liabilities was $4,546 Mil.
Long-Term Debt was $5,251 Mil.
Net Income was 295.390974363 + 250.142126208 + 143.986874487 + 434.626906787 = $1,124 Mil.
Non Operating Income was -74.0555981162 + -10.7886712492 + -0.328137817884 + -28.0293378327 = $-113 Mil.
Cash Flow from Operations was 0 + 0 + 0 + 0 = $0 Mil.
Accounts Receivable was $983 Mil.
Revenue was 5468.83734985 + 5461.01037466 + 4868.33927083 + 5647.9631053 = $21,446 Mil.
Gross Profit was 2315.78152149 + 2290.73669304 + 2009.47472144 + 2447.57878555 = $9,064 Mil.
Total Current Assets was $6,346 Mil.
Total Assets was $27,913 Mil.
Property, Plant and Equipment(Net PPE) was $5,698 Mil.
Depreciation, Depletion and Amortization(DDA) was $0 Mil.
Selling, General & Admin. Expense(SGA) was $6,519 Mil.
Total Current Liabilities was $4,065 Mil.
Long-Term Debt was $5,716 Mil.



1. DSRI = Days Sales in Receivables Index

Measured as the ratio of days’ sales in 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)
=(1097.82821714 / 15551.1599658) / (983.002190829 / 21446.1501006)
=0.07059462 / 0.04583583
=

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)
=(1899.19375678 / 21446.1501006) / (1832.97998064 / 15551.1599658)
=0.42261999 / 0.40670159
=

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 plant, property and equipment to total assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (5644.08178779 + 4534.4949432) / 24986.6676169) / (1 - (6346.377578 + 5698.19445494) / 27913.0467629)
=0.59263969 / 0.56849669
=

4. SGI = Sales Growth Index

Ratio of sales 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
=15551.1599658 / 21446.1501006
=

5. DEPI = Depreciation Index

Measured as the ratio of the rate of depreciation 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))
=(0 / (0 + 5698.19445494)) / (0 / (0 + 4534.4949432))
=0 / 0
=

6. SGAI = Sales, General and Administrative expenses Index

The ratio of SGA expenses 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)
=(4414.5419622 / 15551.1599658) / (6518.58919593 / 21446.1501006)
=0.2838722 / 0.30395149
=

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$sgai= in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((5251.47428246 + 4545.77847459) / 24986.6676169) / ((5715.72108484 + 4065.04494976) / 27913.0467629)
=0.39209921 / 0.35040123
=

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
=(1124.14688184 - -113.201745016 - 0) / 24986.6676169
=0.0495

An M-Score of less than -2.22 suggests that the company will not be a manipulator. An M-Score of greater than -2.22 signals that the company is likely to be a manipulator.

Fomento Economico Mexicano SAB de CV has a M-score of signals that the company is likely to be a manipulator.


Related Terms

Altman Z-Score, Piotroski F-Score, Accounts Receivable, Revenue, Gross Profit, Total Current Assets, Total Assets, Property, Plant and Equipment, Depreciation, Depletion and Amortization, Selling, General & Admin. Expense, Total Current Liabilities, Long-Term Debt, Net Income, Non Operating Income, Cash Flow from Operations


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Fomento Economico Mexicano SAB de CV Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 1.12021.11691.14881.01410.92630.76220.84990.78721.12350.9599
GMI 1.00671.00981.00430.99711.00211.10240.99860.98521.00051.0159
AQI 1.04561.00960.96410.99130.98691.29170.99890.90821.09790.9989
SGI 1.15031.10741.16450.92371.22330.89411.07621.25671.0710.9146
DEPI 0.99841.00211.61640.71270.94691.01081.11160.96170.97890.9913
SGAI 0.9881.01531.00760.99820.99070.88121.0031.051.02510.9767
LVGI 0.79171.04490.94291.05390.93720.61770.96741.1431.30051.0369
TATA -0.0713-0.0651-0.0669-0.0613-0.08340.0808-0.0383-0.0327-0.0326-0.0517
M-score -2.48-2.59-2.43-2.88-2.73-2.10-2.71-2.70-2.52-2.84

Fomento Economico Mexicano SAB de CV Quarterly Data

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
DSRI
GMI
AQI
SGI
DEPI
SGAI
LVGI
TATA
M-score
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