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Coca-Cola Femsa SAB de CV (NYSE:KOF)
Beneish M-Score
-2.57 (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 -2.59 suggests that the company is not a manipulator.

KOF' s 10-Year Beneish M-Score Range
Min: -3.27   Max: 1.69
Current: -2.57

-3.27
1.69

During the past 13 years, the highest Beneish M-Score of Coca-Cola Femsa SAB de CV was 1.69. The lowest was -3.27. And the median was -2.54.


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 * 1.0372+0.528 * 1.0075+0.404 * 1.0533+0.892 * 1.1082+0.115 * 0.9078
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0019+4.679 * -0.042-0.327 * 1.1662
=-2.59

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $653 Mil.
Revenue was 3156.37984438 + 3188.89880861 + 2933.98014098 + 3556.80245965 = $12,836 Mil.
Gross Profit was 1479.56485609 + 1504.47926608 + 1356.55271735 + 1646.65641814 = $5,987 Mil.
Total Current Assets was $3,549 Mil.
Total Assets was $16,613 Mil.
Property, Plant and Equipment(Net PPE) was $3,875 Mil.
Depreciation, Depletion and Amortization(DDA) was $548 Mil.
Selling, General & Admin. Expense(SGA) was $4,136 Mil.
Total Current Liabilities was $2,709 Mil.
Long-Term Debt was $4,526 Mil.
Net Income was 252.549671376 + 206.184773574 + 175.09285227 + 249.884704074 = $884 Mil.
Non Operating Income was -27.3475863111 + -22.0884770495 + -2.501326461 + -65.1806302844 = $-117 Mil.
Cash Flow from Operations was 0 + 0 + 0 + 1698.46272098 = $1,698 Mil.
Accounts Receivable was $568 Mil.
Revenue was 2872.00306396 + 2796.9762419 + 2684.88 + 3228.68247182 = $11,583 Mil.
Gross Profit was 1346.22749904 + 1325.59395248 + 1243.84 + 1527.16673144 = $5,443 Mil.
Total Current Assets was $3,570 Mil.
Total Assets was $14,866 Mil.
Property, Plant and Equipment(Net PPE) was $3,490 Mil.
Depreciation, Depletion and Amortization(DDA) was $442 Mil.
Selling, General & Admin. Expense(SGA) was $3,725 Mil.
Total Current Liabilities was $2,789 Mil.
Long-Term Debt was $2,763 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)
=(653.244692906 / 12836.0612536) / (568.288012256 / 11582.5417777)
=0.05089137 / 0.04906419
=1.0372

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)
=(1504.47926608 / 11582.5417777) / (1479.56485609 / 12836.0612536)
=0.46991656 / 0.46644007
=1.0075

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 - (3549.36919242 + 3875.04721614) / 16612.5254967) / (1 - (3569.97319035 + 3490.00382995) / 14866.2581386)
=0.55308322 / 0.5251006
=1.0533

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
=12836.0612536 / 11582.5417777
=1.1082

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))
=(442.440730665 / (442.440730665 + 3490.00382995)) / (548.193697156 / (548.193697156 + 3875.04721614))
=0.11251035 / 0.12393485
=0.9078

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)
=(4136.43340862 / 12836.0612536) / (3725.28224346 / 11582.5417777)
=0.32225099 / 0.32162908
=1.0019

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)
=((4526.25217194 + 2708.84641535) / 16612.5254967) / ((2762.61968594 + 2789.1229414) / 14866.2581386)
=0.43552069 / 0.37344586
=1.1662

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
=(883.712001293 - -117.118020106 - 1698.46272098) / 16612.5254967
=-0.042

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 -2.59 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 0.82511.6361.10051.22320.92930.91391.2481.0108
GMI 1.01710.99631.02790.98971.02331.01230.98760.9937
AQI 1.01271.0320.9540.91530.9990.95450.93491.2004
SGI 1.44471.11021.04551.2010.96861.2921.28381.0442
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 -2.39-1.96-2.55-2.23-2.67-2.57-2.36-2.65

Coca-Cola Femsa SAB de CV Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.74850.83571.3610.98730.91170.87220.99850.95971.13091.0372
GMI 1.00920.99880.9870.98040.97420.97870.99471.00031.00791.0075
AQI 1.09821.11050.93491.0440.99981.01211.20041.0661.0631.0533
SGI 1.56111.56631.17711.12681.1231.07761.05711.0741.09041.1082
DEPI 000.61260.57121.27591.27551.34431.30630.97670.9078
SGAI 1.47361.02171.0411.03081.01661.02131.04451.03721.02111.0019
LVGI 0.90830.921.08831.13721.24671.29971.25981.23911.19481.1662
TATA -0.072-0.0604-0.1131-0.1171-0.0561-0.0537-0.0428-0.0439-0.0444-0.042
M-score -2.67-2.46-2.63-3.02-2.78-2.86-2.61-2.68-2.53-2.59
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