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Coca-Cola Femsa SAB de CV (NYSE:KOF)
Beneish M-Score
-2.97 (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 -2.97 suggests that the company is not a manipulator.

KOF' s 10-Year Beneish M-Score Range
Min: -3.27   Max: 2.53
Current: -2.97

-3.27
2.53

During the past 13 years, the highest Beneish M-Score of Coca-Cola Femsa SAB de CV was 2.53. The lowest was -3.27. And the median was -2.66.


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 * 0.956+0.528 * 0.9996+0.404 * 1.066+0.892 * 1.063+0.115 * 0.6779
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0386+4.679 * -0.0884-0.327 * 1.2391
=-2.97

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

This Year (Mar14) TTM:Last Year (Mar13) TTM:
Accounts Receivable was $602 Mil.
Revenue was 2962.27137063 + 3499.77310543 + 2885.92980296 + 2922.03416392 = $12,270 Mil.
Gross Profit was 1369.63342772 + 1620.25412192 + 1352.75554187 + 1387.08666353 = $5,730 Mil.
Total Current Assets was $3,280 Mil.
Total Assets was $16,358 Mil.
Property, Plant and Equipment(Net PPE) was $3,770 Mil.
Depreciation, Depletion and Amortization(DDA) was $793 Mil.
Selling, General & Admin. Expense(SGA) was $4,032 Mil.
Total Current Liabilities was $2,690 Mil.
Long-Term Debt was $4,496 Mil.
Net Income was 176.781204561 + 245.878081985 + 227.370689655 + 223.005798464 = $873 Mil.
Non Operating Income was -2.52544577944 + -64.1355316896 + -4.38731527094 + -4.07459645824 = $-75 Mil.
Cash Flow from Operations was 0 + 1671.22976857 + 0 + 723.475944209 = $2,395 Mil.
Accounts Receivable was $592 Mil.
Revenue was 2749.54940193 + 3271.66036547 + 2806.09396806 + 2715.8784795 = $11,543 Mil.
Gross Profit was 1273.7997706 + 1547.4952741 + 1316.94836409 + 1249.77551631 = $5,388 Mil.
Total Current Assets was $2,823 Mil.
Total Assets was $13,081 Mil.
Property, Plant and Equipment(Net PPE) was $3,275 Mil.
Depreciation, Depletion and Amortization(DDA) was $437 Mil.
Selling, General & Admin. Expense(SGA) was $3,652 Mil.
Total Current Liabilities was $2,686 Mil.
Long-Term Debt was $1,952 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)
=(601.591796128 / 12270.0084429) / (592.003932492 / 11543.182215)
=0.04902945 / 0.05128603
=0.956

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)
=(1620.25412192 / 11543.182215) / (1369.63342772 / 12270.0084429)
=0.46677067 / 0.46697032
=0.9996

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 - (3280.09489554 + 3769.57220479) / 16357.9245427) / (1 - (2822.95592332 + 3275.11060134) / 13081.1895789)
=0.56903658 / 0.53382936
=1.066

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
=12270.0084429 / 11543.182215
=1.063

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))
=(437.377255375 / (437.377255375 + 3275.11060134)) / (792.969295498 / (792.969295498 + 3769.57220479))
=0.11781244 / 0.17379991
=0.6779

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)
=(4031.5818518 / 12270.0084429) / (3651.78855401 / 11543.182215)
=0.32857205 / 0.31635891
=1.0386

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)
=((4496.44141731 + 2689.90586975) / 16357.9245427) / ((1951.58118958 + 2686.3837457) / 13081.1895789)
=0.43931901 / 0.35455223
=1.2391

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
=(873.035774665 - -75.1228891982 - 2394.70571278) / 16357.9245427
=-0.0884

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 -2.97 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 0.80671.46350.92431.34021.00071.00660.92511.1108
GMI 1.01710.99631.02790.98971.02331.01230.98760.9937
AQI 1.01271.0320.9540.91530.9990.95450.93491.2004
SGI 1.39441.12541.02751.20550.94121.34241.26381.014
DEPI 1.0930.65440.85851.16141.19350.95970.84430.9754
SGAI 1.04740.98770.98041.00880.96791.01711.04031.0464
LVGI 0.83710.85290.90880.93150.98870.88931.08831.2598
TATA -0.0457-0.039-0.0459-0.0295-0.0299-0.0615-0.0592-0.0422
M-score -2.45-2.10-2.73-2.12-2.63-2.44-2.68-2.58

Coca-Cola Femsa SAB de CV Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
DSRI 0.72240.70830.78240.8530.99481.01341.37910.8671.06140.956
GMI 1.01081.01281.00920.99860.98680.98050.97380.97830.99420.9996
AQI 1.06331.03821.09821.11050.93491.0440.99981.01211.20041.066
SGI 1.62261.60741.53821.58181.17531.15111.13931.08721.06111.063
DEPI 00000.8630.85021.19111.21840.68610.6779
SGAI 3.05492.81081.47781.02141.04151.03231.01891.02341.04651.0386
LVGI 0.94250.9810.90830.921.08831.13721.24671.29971.25981.2391
TATA -0.0086-0.0069-0.0738-0.0641-0.0564-0.0585-0.056-0.054-0.0882-0.0884
M-score -2.64-2.64-2.67-2.44-2.68-2.67-2.34-2.86-2.83-2.97
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