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Coca-Cola Femsa SAB de CV (NYSE:KOF)
Beneish M-Score
-2.74 (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 -2.82 suggests that the company is not a manipulator.

KOF' s 10-Year Beneish M-Score Range
Min: -3.25   Max: 1.35
Current: -2.74

-3.25
1.35

During the past 13 years, the highest Beneish M-Score of Coca-Cola Femsa SAB de CV was 1.35. The lowest was -3.25. And the median was -2.50.


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 * 0.9826+0.528 * 1.006+0.404 * 1.0375+0.892 * 0.9189+0.115 * 1.0012
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9701+4.679 * -0.0539-0.327 * 1.0654
=-2.82

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
Accounts Receivable was $486 Mil.
Revenue was 1665.50738611 + 3156.37984438 + 3188.89880861 + 2933.98014098 = $10,945 Mil.
Gross Profit was 740.057160566 + 1479.56485609 + 1504.47926608 + 1356.55271735 = $5,081 Mil.
Total Current Assets was $2,626 Mil.
Total Assets was $14,625 Mil.
Property, Plant and Equipment(Net PPE) was $3,480 Mil.
Depreciation, Depletion and Amortization(DDA) was $479 Mil.
Selling, General & Admin. Expense(SGA) was $3,483 Mil.
Total Current Liabilities was $1,956 Mil.
Long-Term Debt was $4,464 Mil.
Net Income was 146.482559141 + 252.549671376 + 206.184773574 + 175.09285227 = $780 Mil.
Non Operating Income was -59.7775558693 + -27.3475863111 + -22.0884770495 + -2.501326461 = $-112 Mil.
Cash Flow from Operations was 1680.79611584 + 0 + 0 + 0 = $1,681 Mil.
Accounts Receivable was $539 Mil.
Revenue was 3556.80245965 + 2872.00306396 + 2796.9762419 + 2684.88 = $11,911 Mil.
Gross Profit was 1646.65641814 + 1346.22749904 + 1325.59395248 + 1243.84 = $5,562 Mil.
Total Current Assets was $3,323 Mil.
Total Assets was $16,654 Mil.
Property, Plant and Equipment(Net PPE) was $3,980 Mil.
Depreciation, Depletion and Amortization(DDA) was $548 Mil.
Selling, General & Admin. Expense(SGA) was $3,907 Mil.
Total Current Liabilities was $2,490 Mil.
Long-Term Debt was $4,372 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)
=(486.278020729 / 10944.7661801) / (538.585703305 / 11910.6617655)
=0.04443019 / 0.04521879
=0.9826

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)
=(1479.56485609 / 11910.6617655) / (740.057160566 / 10944.7661801)
=0.46700326 / 0.46420855
=1.006

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 - (2625.80489653 + 3479.70111222) / 14625.2539513) / (1 - (3322.90545734 + 3980.39969254) / 16653.7279016)
=0.58253675 / 0.56146124
=1.0375

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
=10944.7661801 / 11910.6617655
=0.9189

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))
=(548.193697156 / (548.193697156 + 3980.39969254)) / (478.564787714 / (478.564787714 + 3479.70111222))
=0.12105165 / 0.12090264
=1.0012

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)
=(3482.5543438 / 10944.7661801) / (3906.59047209 / 11910.6617655)
=0.31819358 / 0.32799105
=0.9701

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)
=((4464.10247581 + 1956.06211907) / 14625.2539513) / ((4371.63720215 + 2490.23827825) / 16653.7279016)
=0.43897799 / 0.4120324
=1.0654

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
=(780.30985636 - -111.714945691 - 1680.79611584) / 14625.2539513
=-0.0539

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 -2.82 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

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

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 0.83570.880.98730.91170.87221.08660.95971.13091.03720.9826
GMI 0.99880.9870.98040.97420.97870.99471.00031.00791.00751.006
AQI 1.11050.93491.0440.99981.01211.20041.0661.0631.05331.0375
SGI 1.56631.17711.12681.1231.07761.05711.0741.09041.10820.9189
DEPI 00.61260.57121.27591.27551.34431.30630.97670.90781.0012
SGAI 1.02171.0411.03081.01661.02131.04451.03721.02111.00190.9701
LVGI 0.921.08831.13721.24671.29971.25981.23911.19481.16621.0654
TATA -0.0604-0.1131-0.1171-0.0561-0.0537-0.0428-0.0439-0.0444-0.042-0.0539
M-score -2.46-3.08-3.02-2.78-2.86-2.52-2.68-2.53-2.59-2.82
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