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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 0.00. The lowest was -3.51. And the median was -2.54.


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 (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $1,085 Mil.
Revenue was 5068.2970762 + 4869.79801818 + 5365.85508741 + 4677.4988568 = $19,981 Mil.
Gross Profit was 1893.87685083 + 1768.71635763 + 2153.65327834 + 1832.97998064 = $7,649 Mil.
Total Current Assets was $5,950 Mil.
Total Assets was $25,384 Mil.
Property, Plant and Equipment(Net PPE) was $4,693 Mil.
Depreciation, Depletion and Amortization(DDA) was $0 Mil.
Selling, General & Admin. Expense(SGA) was $5,563 Mil.
Total Current Liabilities was $3,932 Mil.
Long-Term Debt was $5,790 Mil.
Net Income was 261.233636042 + 170.104876264 + 330.236209402 + 295.390974363 = $1,057 Mil.
Non Operating Income was -13.3484866354 + -15.4847053085 + -98.3034166003 + -74.0555981162 = $-201 Mil.
Cash Flow from Operations was 0 + 0 + 0 + 0 = $0 Mil.
Accounts Receivable was $740 Mil.
Revenue was 4852.96397747 + 4278.85151764 + 3764.81526118 + 5468.83734985 = $18,365 Mil.
Gross Profit was 1899.19375678 + 1685.90648072 + 1558.34854172 + 2315.78152149 = $7,459 Mil.
Total Current Assets was $4,873 Mil.
Total Assets was $24,157 Mil.
Property, Plant and Equipment(Net PPE) was $4,802 Mil.
Depreciation, Depletion and Amortization(DDA) was $0 Mil.
Selling, General & Admin. Expense(SGA) was $5,333 Mil.
Total Current Liabilities was $3,397 Mil.
Long-Term Debt was $5,269 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)
=(1084.60474541 / 19981.4490386) / (739.766913019 / 18365.4681061)
=0.05428059 / 0.04028032
=

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)
=(7459.23030071 / 18365.4681061) / (7649.22646745 / 19981.4490386)
=0.4061552 / 0.3828164
=

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 - (5949.72606118 + 4692.60954872) / 25384.2112599) / (1 - (4872.92624942 + 4802.31536514) / 24157.3207918)
=0.5807498 / 0.59949029
=

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
=19981.4490386 / 18365.4681061
=

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 + 4802.31536514)) / (0 / (0 + 4692.60954872))
=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)
=(5562.7387279 / 19981.4490386) / (5332.85940305 / 18365.4681061)
=0.27839516 / 0.29037427
=

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)
=((5789.86587183 + 3931.58498536) / 25384.2112599) / ((5268.55393044 + 3396.55796165) / 24157.3207918)
=0.38297234 / 0.35869507
=

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
=(1056.96569607 - -201.19220666 - 0) / 25384.2112599
=0.0496

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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.11691.14881.01410.66890.75231.20120.76731.14410.98541.322
GMI 1.00981.00430.99711.08971.01370.99990.9841.00051.01591.0578
AQI 1.00960.96410.99131.29570.93111.00940.94981.09790.99891.0057
SGI 1.10741.16450.92370.99491.09931.06821.26611.0710.91461.0061
DEPI 1.00211.61640.71270.97461.03241.13690.89450.97890.99130.9843
SGAI 1.01531.00760.99820.89330.97731.02311.02941.02510.97630.9396
LVGI 1.04490.94291.05390.75380.80560.96941.08741.30051.03691.0514
TATA -0.0651-0.064-0.0613-0.08610.0841-0.0266-0.0328-0.0304-0.0514-0.0388
M-score -2.59-2.42-2.88-2.93-2.18-2.33-2.68-2.49-2.81-2.34

Fomento Economico Mexicano SAB de CV Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI
GMI
AQI
SGI
DEPI
SGAI
LVGI
TATA
M-score
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