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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 -1.42. The lowest was -3.12. And the median was -2.48.


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 (Dec15) TTM:Last Year (Dec14) TTM:
Accounts Receivable was $811 Mil.
Revenue was 5365.85508741 + 4677.4988568 + 4852.96397747 + 2255.88187039 = $17,152 Mil.
Gross Profit was 2153.65327834 + 1832.97998064 + 1899.19375678 + 1034.15914684 = $6,920 Mil.
Total Current Assets was $5,081 Mil.
Total Assets was $23,980 Mil.
Property, Plant and Equipment(Net PPE) was $4,704 Mil.
Depreciation, Depletion and Amortization(DDA) was $0 Mil.
Selling, General & Admin. Expense(SGA) was $4,864 Mil.
Total Current Liabilities was $3,828 Mil.
Long-Term Debt was $5,036 Mil.
Net Income was 330.236209402 + 295.390974363 + 250.142126208 + 143.986874487 = $1,020 Mil.
Non Operating Income was -98.3034166003 + -74.0555981162 + -10.7886712492 + -0.328137817884 = $-183 Mil.
Cash Flow from Operations was 0 + 0 + 0 + 0 = $0 Mil.
Accounts Receivable was $610 Mil.
Revenue was 3764.81526118 + 5468.83734985 + 5461.01037466 + 2933.98014098 = $17,629 Mil.
Gross Profit was 1558.34854172 + 2315.78152149 + 2290.73669304 + 1356.55271735 = $7,521 Mil.
Total Current Assets was $5,448 Mil.
Total Assets was $25,906 Mil.
Property, Plant and Equipment(Net PPE) was $5,208 Mil.
Depreciation, Depletion and Amortization(DDA) was $0 Mil.
Selling, General & Admin. Expense(SGA) was $5,322 Mil.
Total Current Liabilities was $3,397 Mil.
Long-Term Debt was $5,712 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)
=(811.208229835 / 17152.1997921) / (609.896353431 / 17628.6431267)
=0.04729471 / 0.0345969
=

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)
=(1832.97998064 / 17628.6431267) / (2153.65327834 / 17152.1997921)
=0.42665901 / 0.40344599
=

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 - (5080.55256128 + 4704.03524394) / 23980.1752824) / (1 - (5448.29723494 + 5208.4294618) / 25906.3393134)
=0.5919718 / 0.58864405
=

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
=17152.1997921 / 17628.6431267
=

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 + 5208.4294618)) / (0 / (0 + 4704.03524394))
=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)
=(4864.18778578 / 17152.1997921) / (5321.74820054 / 17628.6431267)
=0.28358973 / 0.30188076
=

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)
=((5036.38046586 + 3828.20921404) / 23980.1752824) / ((5711.58017975 + 3396.5083847) / 25906.3393134)
=0.36966326 / 0.3515776
=

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
=(1019.75618446 - -183.475823784 - 0) / 23980.1752824
=0.0502

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 1.11691.14881.01410.92630.76220.84990.78721.12350.98541.322
GMI 1.00981.00430.99711.00211.10240.99860.98521.00051.01591.0578
AQI 1.00960.96410.99130.98691.29170.99890.90821.09790.99891.0057
SGI 1.10741.16450.92371.22330.89411.07621.25671.0710.91461.0061
DEPI 1.00211.61640.71270.94691.01081.11160.96170.97890.99130.9843
SGAI 1.01531.00760.99820.99070.88121.0031.051.02510.97670.9392
LVGI 1.04490.94291.05390.93720.61770.96741.1431.30051.03691.0514
TATA -0.0651-0.064-0.0613-0.08340.0808-0.0383-0.0327-0.0326-0.0517-0.0388
M-score -2.59-2.42-2.88-2.73-2.10-2.71-2.70-2.52-2.81-2.34

Fomento Economico Mexicano SAB de CV Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI
GMI
AQI
SGI
DEPI
SGAI
LVGI
TATA
M-score
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