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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.

KOF' s 10-Year Beneish M-Score Range
Min: -3.11   Max: 3.06
Current: 0

-3.11
3.06

During the past 13 years, the highest Beneish M-Score of Coca-Cola Femsa SAB de CV was 3.06. The lowest was -3.11. And the median was -2.24.


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 (Jun15) TTM:Last Year (Jun14) TTM:
Accounts Receivable was $493 Mil.
Revenue was 2361.23313866 + 2255.88187039 + 1665.50738611 + 3156.37984438 = $9,439 Mil.
Gross Profit was 1130.03255982 + 1034.15914684 + 740.057160566 + 1479.56485609 = $4,384 Mil.
Total Current Assets was $2,223 Mil.
Total Assets was $13,411 Mil.
Property, Plant and Equipment(Net PPE) was $3,146 Mil.
Depreciation, Depletion and Amortization(DDA) was $0 Mil.
Selling, General & Admin. Expense(SGA) was $2,955 Mil.
Total Current Liabilities was $1,865 Mil.
Long-Term Debt was $4,259 Mil.
Net Income was 172.360328699 + 143.986874487 + 146.482559141 + 252.549671376 = $715 Mil.
Non Operating Income was -23.903044085 + -0.328137817884 + -59.7775558693 + -27.3475863111 = $-111 Mil.
Cash Flow from Operations was 0 + 0 + 0 + 0 = $0 Mil.
Accounts Receivable was $629 Mil.
Revenue was 3188.89880861 + 2933.98014098 + 3556.80245965 + 2872.00306396 = $12,552 Mil.
Gross Profit was 1504.47926608 + 1356.55271735 + 1646.65641814 + 1346.22749904 = $5,854 Mil.
Total Current Assets was $3,402 Mil.
Total Assets was $16,829 Mil.
Property, Plant and Equipment(Net PPE) was $3,939 Mil.
Depreciation, Depletion and Amortization(DDA) was $0 Mil.
Selling, General & Admin. Expense(SGA) was $4,079 Mil.
Total Current Liabilities was $2,655 Mil.
Long-Term Debt was $4,490 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)
=(493.371750478 / 9439.00223953) / (629.021334236 / 12551.6844732)
=0.05226948 / 0.0501145
=

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)
=(1034.15914684 / 12551.6844732) / (1130.03255982 / 9439.00223953)
=0.46638488 / 0.46443614
=

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 - (2223.43531965 + 3145.64060158) / 13410.6413768) / (1 - (3401.70242896 + 3938.52168827) / 16829.0336484)
=0.59964063 / 0.56383567
=

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
=9439.00223953 / 12551.6844732
=

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 + 3938.52168827)) / (0 / (0 + 3145.64060158))
=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)
=(2955.24801004 / 9439.00223953) / (4079.04475415 / 12551.6844732)
=0.31308903 / 0.32497987
=

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)
=((4259.13483901 + 1865.47108378) / 13410.6413768) / ((4489.88701782 + 2654.61933935) / 16829.0336484)
=0.45669747 / 0.42453456
=

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
=(715.379433703 - -111.356324083 - 0) / 13410.6413768
=0.0616

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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 1.6361.10051.22320.92930.91390.80691.11.0673
GMI 0.99631.02790.98971.02331.01230.98760.99371.007
AQI 1.0320.9540.91530.9990.95450.93491.20041.0375
SGI 1.11021.04551.2010.96861.2921.28381.04420.8459
DEPI 0.65440.85851.16141.19350.95970.84430.97541.0012
SGAI 0.98770.98041.00880.96791.01711.04031.04640.967
LVGI 0.85290.90880.93150.98870.88931.08831.25981.0654
TATA -0.039-0.0459-0.0295-0.0299-0.0615-0.0592-0.0422-0.058
M-score -1.96-2.55-2.23-2.67-2.57-2.77-2.56-2.82

Coca-Cola Femsa SAB de CV Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 0.9873
GMI 0.9804
AQI 1.044
SGI 1.1268
DEPI 0
SGAI 1.0308
LVGI 1.1372
TATA 0.0268
M-score -2.41
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