Switch to:
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 -3.14. 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 (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $421 Mil.
Revenue was 2236.57408232 + 2361.23313866 + 2255.88187039 + 1665.50738611 = $8,519 Mil.
Gross Profit was 1065.04658911 + 1130.03255982 + 1034.15914684 + 740.057160566 = $3,969 Mil.
Total Current Assets was $2,271 Mil.
Total Assets was $12,636 Mil.
Property, Plant and Equipment(Net PPE) was $2,852 Mil.
Depreciation, Depletion and Amortization(DDA) was $0 Mil.
Selling, General & Admin. Expense(SGA) was $2,652 Mil.
Total Current Liabilities was $1,939 Mil.
Long-Term Debt was $4,087 Mil.
Net Income was 118.061370533 + 172.360328699 + 143.986874487 + 146.482559141 = $581 Mil.
Non Operating Income was -64.1973549027 + -23.903044085 + -0.328137817884 + -59.7775558693 = $-148 Mil.
Cash Flow from Operations was 0 + 0 + 0 + 0 = $0 Mil.
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 $0 Mil.
Selling, General & Admin. Expense(SGA) was $4,136 Mil.
Total Current Liabilities was $2,709 Mil.
Long-Term Debt was $4,526 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)
=(421.172655846 / 8519.19647748) / (653.244692906 / 12836.0612536)
=0.04943807 / 0.05089137
=

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)
=(1130.03255982 / 12836.0612536) / (1065.04658911 / 8519.19647748)
=0.46644007 / 0.46592369
=

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 - (2270.72161153 + 2852.06102609) / 12636.0704805) / (1 - (3549.36919242 + 3875.04721614) / 16612.5254967)
=0.59459053 / 0.55308322
=

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
=8519.19647748 / 12836.0612536
=

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 + 3875.04721614)) / (0 / (0 + 2852.06102609))
=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)
=(2652.37813559 / 8519.19647748) / (4136.43340862 / 12836.0612536)
=0.31134135 / 0.32225099
=

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)
=((4086.9544561 + 1938.92640168) / 12636.0704805) / ((4526.25217194 + 2708.84641535) / 16612.5254967)
=0.47687933 / 0.43552069
=

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
=(580.89113286 - -148.206092675 - 0) / 12636.0704805
=0.0577

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 1.6361.10051.22320.92930.91390.73581.19160.80691.11.0673
GMI 0.99631.02790.98971.02331.01231.00451.00970.98760.99371.007
AQI 1.0320.9540.91530.9990.95450.93351.06330.93491.20041.0375
SGI 1.11021.04551.2010.96861.2921.04511.07131.28381.04420.8459
DEPI 0.65440.85851.16141.19350.95970.87081.2430.84430.97541.0012
SGAI 0.98770.98041.00880.96791.01710.9581.01351.04031.04640.967
LVGI 0.85290.90880.93150.98870.88931.03950.94251.08831.25981.0654
TATA -0.039-0.0459-0.0295-0.0299-0.0615-0.0311-0.013-0.0592-0.0422-0.058
M-score -1.96-2.55-2.23-2.67-2.57-2.87-2.23-2.77-2.56-2.82

Coca-Cola Femsa SAB de CV Quarterly Data

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
DSRI
GMI
AQI
SGI
DEPI
SGAI
LVGI
TATA
M-score
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GuruFocus Premium Plus Membership

FEEDBACK