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Coca-Cola Femsa SAB de CV (NYSE:KOF)
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.

Coca-Cola Femsa 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 Coca-Cola Femsa SAB de CV was 3.06. The lowest was -3.45. And the median was -2.25.


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 * +0.528 * +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 (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $478 Mil.
Revenue was 2104.16158545 + 2510.1349768 + 2236.57408232 + 2361.23313866 = $9,212 Mil.
Gross Profit was 959.427803271 + 1193.52533158 + 1065.04658911 + 1130.03255982 = $4,348 Mil.
Total Current Assets was $2,506 Mil.
Total Assets was $12,331 Mil.
Property, Plant and Equipment(Net PPE) was $2,883 Mil.
Depreciation, Depletion and Amortization(DDA) was $0 Mil.
Selling, General & Admin. Expense(SGA) was $2,926 Mil.
Total Current Liabilities was $2,084 Mil.
Long-Term Debt was $3,627 Mil.
Net Income was 136.015836373 + 194.322069644 + 118.061370533 + 172.360328699 = $621 Mil.
Non Operating Income was -4.9346863071 + -95.6085672775 + -64.1973549027 + -23.903044085 = $-189 Mil.
Cash Flow from Operations was 0 + 0 + 0 + 0 = $0 Mil.
Accounts Receivable was $462 Mil.
Revenue was 2255.88187039 + 1665.50738611 + 3156.37984438 + 3188.89880861 = $10,267 Mil.
Gross Profit was 1034.15914684 + 740.057160566 + 1479.56485609 + 1504.47926608 = $4,758 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 $0 Mil.
Selling, General & Admin. Expense(SGA) was $3,225 Mil.
Total Current Liabilities was $1,934 Mil.
Long-Term Debt was $4,337 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)
=(477.983925401 / 9212.10378324) / (461.689909762 / 10266.6679095)
=0.05188651 / 0.04496979
=

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)
=(4758.26042957 / 10266.6679095) / (4348.03228378 / 9212.10378324)
=0.46346687 / 0.47199124
=

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 - (2506.48032081 + 2882.70761133) / 12330.5332297) / (1 - (2226.02132896 + 3091.91140279) / 13326.0049221)
=0.56293959 / 0.60093571
=

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
=9212.10378324 / 10266.6679095
=

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 + 3091.91140279)) / (0 / (0 + 2882.70761133))
=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)
=(2926.32350572 / 9212.10378324) / (3224.55125008 / 10266.6679095)
=0.31766072 / 0.31407963
=

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)
=((3627.44819997 + 2083.79891437) / 12330.5332297) / ((4336.53814602 + 1933.65053322) / 13326.0049221)
=0.46317925 / 0.47052276
=

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
=(620.759605249 - -188.643652572 - 0) / 12330.5332297
=0.0656

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 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.

Coca-Cola Femsa SAB de CV Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.02311.22330.92920.91390.73581.17740.81671.11.10160.9142
GMI 1.03210.98991.02311.01231.00451.00950.98780.99371.0070.982
AQI 0.9540.91530.9990.95450.93351.06330.93491.20041.03750.9592
SGI 1.12451.20080.96871.2921.04511.08431.26841.04420.84590.8799
DEPI 0.79731.16261.19220.95970.87081.15960.90510.97541.00120.9761
SGAI 0.98141.01070.96611.01710.9580.99721.05741.04640.9670.9964
LVGI 0.90880.93150.98870.88931.03950.94251.08831.25981.06541.0157
TATA -0.0459-0.0297-0.0299-0.0642-0.0335-0.0172-0.0581-0.0422-0.058-0.0469
M-score -2.55-2.23-2.67-2.58-2.88-2.25-2.76-2.56-2.79-2.92

Coca-Cola Femsa SAB de CV Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI
GMI
AQI
SGI
DEPI
SGAI
LVGI
TATA
M-score
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