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Coca-Cola Femsa SAB de CV (NYSE:KOF)
Beneish M-Score
-2.55 (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.

Coca-Cola Femsa SAB de CV has a M-score of -2.55 suggests that the company is not a manipulator.

KOF' s 10-Year Beneish M-Score Range
Min: -3.41   Max: 2.41
Current: -2.55

-3.41
2.41

During the past 13 years, the highest Beneish M-Score of Coca-Cola Femsa SAB de CV was 2.41. The lowest was -3.41. And the median was -2.55.


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 Coca-Cola Femsa 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 * 0.7231+0.528 * 1.0083+0.404 * 1.063+0.892 * 1.0671+0.115 * 2.5097
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0195+4.679 * -0.0014-0.327 * 1.1948
=-2.55

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was $629 Mil.
Revenue was 3189.43884228 + 2962.27137063 + 3499.77310543 + 2885.92980296 = $12,537 Mil.
Gross Profit was 1504.73404665 + 1369.63342772 + 1620.25412192 + 1352.75554187 = $5,847 Mil.
Total Current Assets was $3,402 Mil.
Total Assets was $16,832 Mil.
Property, Plant and Equipment(Net PPE) was $3,939 Mil.
Depreciation, Depletion and Amortization(DDA) was $295 Mil.
Selling, General & Admin. Expense(SGA) was $4,076 Mil.
Total Current Liabilities was $2,655 Mil.
Long-Term Debt was $4,491 Mil.
Net Income was 206.219690555 + 176.781204561 + 245.878081985 + 227.370689655 = $856 Mil.
Non Operating Income was -22.0922176892 + -2.52544577944 + -64.1355316896 + -4.38731527094 = $-93 Mil.
Cash Flow from Operations was 0 + 0 + 972.923914688 + 0 = $973 Mil.
Accounts Receivable was $815 Mil.
Revenue was 2922.03416392 + 2749.54940193 + 3271.66036547 + 2806.09396806 = $11,749 Mil.
Gross Profit was 1387.08666353 + 1273.7997706 + 1547.4952741 + 1316.94836409 = $5,525 Mil.
Total Current Assets was $3,257 Mil.
Total Assets was $13,999 Mil.
Property, Plant and Equipment(Net PPE) was $3,317 Mil.
Depreciation, Depletion and Amortization(DDA) was $702 Mil.
Selling, General & Admin. Expense(SGA) was $3,746 Mil.
Total Current Liabilities was $2,640 Mil.
Long-Term Debt was $2,334 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)
=(629.127857748 / 12537.4131213) / (815.389437392 / 11749.3378994)
=0.05018004 / 0.06939876
=0.7231

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)
=(1369.63342772 / 11749.3378994) / (1504.73404665 / 12537.4131213)
=0.47026736 / 0.46639423
=1.0083

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 - (3402.2785005 + 3939.18866908) / 16831.8836117) / (1 - (3256.85629212 + 3316.64315938) / 13999.1380661)
=0.56383567 / 0.53043542
=1.063

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
=12537.4131213 / 11749.3378994
=1.0671

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))
=(701.895454636 / (701.895454636 + 3316.64315938)) / (294.660414461 / (294.660414461 + 3939.18866908))
=0.17466435 / 0.06959634
=2.5097

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)
=(4075.59688127 / 12537.4131213) / (3746.344172 / 11749.3378994)
=0.32507479 / 0.31885577
=1.0195

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)
=((4490.64737126 + 2655.06889385) / 16831.8836117) / ((2333.96019433 + 2640.26014731) / 13999.1380661)
=0.42453456 / 0.35532333
=1.1948

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
=(856.249666756 - -93.1405104292 - 972.923914688) / 16831.8836117
=-0.0014

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.

Coca-Cola Femsa SAB de CV has a M-score of -2.55 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.

Coca-Cola Femsa SAB de CV Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 0.89231.11031.11221.1641.14441.00661.03381.05110.99541.1124
GMI 1.02470.98481.03210.98991.02311.01231.00451.00950.98780.9937
AQI 1.0131.04510.95840.9330.96470.95310.96581.05730.90871.2004
SGI 1.26421.15381.10531.20530.94131.34241.06331.09241.24871.014
DEPI 1.09560.66830.79761.14781.26960.96210.96811.12620.83830.9754
SGAI 1.03321.00020.98141.01070.96611.01710.9580.99721.05741.0464
LVGI 0.83720.84850.91790.92360.99250.88930.94760.95551.17751.2598
TATA -0.0525-0.0408-0.0481-0.0297-0.0299-0.0642-0.0285-0.0161-0.0581-0.0422
M-score -2.51-2.41-2.50-2.28-2.50-2.45-2.52-2.37-2.66-2.58

Coca-Cola Femsa SAB de CV Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 0.96781.04951.14131.06381.01941.38670.871.0630.9560.7231
GMI 1.01191.01011.00110.98720.9810.97390.97830.99420.99961.0083
AQI 1.03821.09821.11050.90871.0440.99981.01211.20041.0661.063
SGI 1.17641.14671.18221.16841.14431.13311.08341.06111.0631.0671
DEPI 0.7970.79420.88560.83830.89180.59540.60660.96160.94832.5097
SGAI 1.0592.24313.30394.53453.80411.90881.33731.04651.03861.0195
LVGI 0.9810.90830.921.17751.13721.24671.29971.25981.23911.1948
TATA -0.0348-0.02460.0112-0.0882-0.0584-0.0857-0.0819-0.0456-0.0462-0.0014
M-score -2.52-2.58-2.47-3.41-3.14-2.70-3.12-2.60-2.74-2.55
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