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Fomento Economico Mexicano SAB de CV (NYSE:FMX)
Beneish M-Score
-3.40 (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 -3.51 suggests that the company is not a manipulator.

FMX' s 10-Year Beneish M-Score Range
Min: -3.4   Max: -1.25
Current: -3.4

-3.4
-1.25

During the past 13 years, the highest Beneish M-Score of Fomento Economico Mexicano SAB de CV was -1.25. The lowest was -3.40. And the median was -2.61.


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 * 0.5761+0.528 * 1.0202+0.404 * 1.015+0.892 * 0.9337+0.115 * 0.659
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9696+4.679 * -0.0955-0.327 * 1.3579
=-3.51

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
Accounts Receivable was $462 Mil.
Revenue was 2255.88187039 + 9664.61210013 + 3156.37984438 + 5461.01037466 = $20,538 Mil.
Gross Profit was 1034.15914684 + 3617.98836128 + 1479.56485609 + 2290.73669304 = $8,422 Mil.
Total Current Assets was $2,226 Mil.
Total Assets was $13,326 Mil.
Property, Plant and Equipment(Net PPE) was $3,092 Mil.
Depreciation, Depletion and Amortization(DDA) was $690 Mil.
Selling, General & Admin. Expense(SGA) was $6,070 Mil.
Total Current Liabilities was $1,934 Mil.
Long-Term Debt was $4,337 Mil.
Net Income was 143.986874487 + 570.641506835 + 252.549671376 + 232.275344026 = $1,199 Mil.
Non Operating Income was -0.328137817884 + 6.88681519231 + -74.9414519906 + -32.7094172336 = $-101 Mil.
Cash Flow from Operations was 0 + 2573.18962846 + 0 + 0 = $2,573 Mil.
Accounts Receivable was $858 Mil.
Revenue was 2933.98014098 + 11403.5357417 + 2872.00306396 + 4786.09996915 = $21,996 Mil.
Gross Profit was 1356.55271735 + 4469.02382782 + 1346.22749904 + 2030.62326442 = $9,202 Mil.
Total Current Assets was $5,603 Mil.
Total Assets was $27,106 Mil.
Property, Plant and Equipment(Net PPE) was $5,456 Mil.
Depreciation, Depletion and Amortization(DDA) was $745 Mil.
Selling, General & Admin. Expense(SGA) was $6,705 Mil.
Total Current Liabilities was $3,781 Mil.
Long-Term Debt was $5,611 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)
=(461.689909762 / 20537.8841896) / (858.25816721 / 21995.6189158)
=0.02247992 / 0.03901951
=0.5761

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)
=(3617.98836128 / 21995.6189158) / (1034.15914684 / 20537.8841896)
=0.41837547 / 0.41009332
=1.0202

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 - (2226.02132896 + 3091.91140279) / 13326.0049221) / (1 - (5602.74387933 + 5455.69620253) / 27106.1926779)
=0.60093571 / 0.59203271
=1.015

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
=20537.8841896 / 21995.6189158
=0.9337

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))
=(745.272867025 / (745.272867025 + 5455.69620253)) / (689.645673358 / (689.645673358 + 3091.91140279))
=0.12018652 / 0.18237082
=0.659

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)
=(6070.48451389 / 20537.8841896) / (6704.85072206 / 21995.6189158)
=0.29557497 / 0.30482665
=0.9696

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)
=((4336.53814602 + 1933.65053322) / 13326.0049221) / ((5611.0816342 + 3781.09603578) / 27106.1926779)
=0.47052276 / 0.34649564
=1.3579

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
=(1199.45339672 - -101.09219185 - 2573.18962846) / 13326.0049221
=-0.0955

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 -3.51 suggests that the company will not 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 1.12021.11691.14881.01410.66890.75231.20120.76731.14410.9599
GMI 1.00671.00981.00430.99711.08971.01370.99990.9841.00051.0159
AQI 1.04561.00960.96410.99131.29570.93111.00940.94981.09790.9989
SGI 1.15031.10741.16450.92370.99491.09931.06821.26611.0710.9146
DEPI 0.99841.00211.61640.71270.97461.03241.13690.89450.97890.9913
SGAI 0.9881.01531.00760.99820.89330.97731.02311.02941.02660.9753
LVGI 0.79171.04490.94291.05390.75380.80560.96941.08741.30051.0369
TATA -0.0713-0.0651-0.0669-0.0613-0.08610.0838-0.0202-0.0334-0.0308-0.0517
M-score -2.48-2.59-2.43-2.88-2.93-2.18-2.30-2.69-2.49-2.84

Fomento Economico Mexicano SAB de CV Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 0.83870.95980.92441.03070.94530.98441.15890.63510.97480.5761
GMI 0.98080.97920.98020.96891.03171.01871.02361.03940.99961.0202
AQI 0.94981.00650.96690.97081.09791.03541.05631.01520.99891.015
SGI 1.15841.13041.1490.9981.29611.19171.19561.33330.90060.9337
DEPI 0.89450.84050.8820.86440.97890.95090.97710.65990.99130.659
SGAI 1.01731.00951.00031.01171.01031.00930.99980.97950.98250.9696
LVGI 1.08741.10831.25821.31991.30051.21541.11271.36451.03691.3579
TATA -0.0442-0.0422-0.0352-0.0428-0.0276-0.0297-0.03-0.0449-0.0479-0.0955
M-score -2.77-2.66-2.70-2.80-2.44-2.52-2.30-2.86-2.83-3.51
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