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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.

FMX' s 10-Year Beneish M-Score Range
Min: -3.51   Max: -1.26
Current: 0

-3.51
-1.26

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 (Jun15) TTM:Last Year (Jun14) TTM:
Accounts Receivable was $493 Mil.
Revenue was 2361.23313866 + 2255.88187039 + 9664.61210013 + 3156.37984438 = $17,438 Mil.
Gross Profit was 1130.03255982 + 1034.15914684 + 3617.98836128 + 1479.56485609 = $7,262 Mil.
Total Current Assets was $2,223 Mil.
Total Assets was $13,411 Mil.
Property, Plant and Equipment(Net PPE) was $3,146 Mil.
Depreciation, Depletion and Amortization(DDA) was $0 Mil.
Selling, General & Admin. Expense(SGA) was $5,189 Mil.
Total Current Liabilities was $1,865 Mil.
Long-Term Debt was $4,259 Mil.
Net Income was 172.360328699 + 143.986874487 + 570.641506835 + 252.549671376 = $1,140 Mil.
Non Operating Income was -23.903044085 + -0.328137817884 + 6.88681519231 + -74.9414519906 = $-92 Mil.
Cash Flow from Operations was 0 + 0 + 0 + 0 = $0 Mil.
Accounts Receivable was $944 Mil.
Revenue was 3188.89880861 + 2933.98014098 + 11403.5357417 + 2872.00306396 = $20,398 Mil.
Gross Profit was 1504.47926608 + 1356.55271735 + 4469.02382782 + 1346.22749904 = $8,676 Mil.
Total Current Assets was $6,116 Mil.
Total Assets was $28,091 Mil.
Property, Plant and Equipment(Net PPE) was $5,727 Mil.
Depreciation, Depletion and Amortization(DDA) was $0 Mil.
Selling, General & Admin. Expense(SGA) was $6,257 Mil.
Total Current Liabilities was $3,996 Mil.
Long-Term Debt was $5,679 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)
=(493.371750478 / 17438.1069536) / (944.263153034 / 20398.4177553)
=0.02829274 / 0.046291
=

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)
=(1034.15914684 / 20398.4177553) / (1130.03255982 / 17438.1069536)
=0.425341 / 0.41642966
=

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 - (2223.43531965 + 3145.64060158) / 13410.6413768) / (1 - (6116.19924268 + 5727.45743928) / 28090.7705569)
=0.59964063 / 0.57837907
=

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
=17438.1069536 / 20398.4177553
=

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 + 5727.45743928)) / (0 / (0 + 3145.64060158))
=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)
=(5189.39972658 / 17438.1069536) / (6256.75420841 / 20398.4177553)
=0.29758963 / 0.30672743
=

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)
=((4259.13483901 + 1865.47108378) / 13410.6413768) / ((5678.8935751 + 3996.16722593) / 28090.7705569)
=0.45669747 / 0.34442134
=

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
=(1139.5383814 - -92.2858187012 - 0) / 13410.6413768
=0.0919

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 1.08981.05431.14881.01410.54410.9251.19230.7731.14410.9599
GMI 1.00091.0111.00430.99711.00211.10240.99860.98521.00051.0159
AQI 1.04561.00960.96410.99131.29570.93111.00940.94981.09790.9989
SGI 1.18231.17321.16450.92371.22330.89411.07621.25671.0710.9146
DEPI 0.96720.95611.61640.71270.60621.65981.07790.94350.97890.9913
SGAI 0.99421.01571.00760.99820.99070.88121.0031.051.02510.9767
LVGI 0.79171.04490.94291.05390.75380.80560.96941.08741.30051.0369
TATA -0.0692-0.0651-0.0669-0.0476-0.07790.0841-0.0399-0.0327-0.0326-0.0517
M-score -2.47-2.59-2.43-2.81-2.91-2.06-2.40-2.68-2.50-2.84

Fomento Economico Mexicano SAB de CV Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI
GMI
AQI
SGI
DEPI
SGAI
LVGI
TATA
M-score
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