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Coca-Cola Femsa SAB de CV (NYSE:KOF)
Beneish M-Score
-2.85 (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 -2.98 suggests that the company is not a manipulator.

KOF' s 10-Year Beneish M-Score Range
Min: -3.27   Max: 1.69
Current: -2.85

-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 -2.56.


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 * 0.9177+0.528 * 1.007+0.404 * 1.0561+0.892 * 0.8443+0.115 * 0.9552
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9576+4.679 * -0.0617-0.327 * 1.071
=-2.98

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
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 $479 Mil.
Selling, General & Admin. Expense(SGA) was $3,225 Mil.
Total Current Liabilities was $1,934 Mil.
Long-Term Debt was $4,337 Mil.
Net Income was 143.986874487 + 146.482559141 + 252.549671376 + 206.184773574 = $749 Mil.
Non Operating Income was -0.328137817884 + -59.7775558693 + -27.3475863111 + -22.0884770495 = $-110 Mil.
Cash Flow from Operations was 0 + 1680.79611584 + 0 + 0 = $1,681 Mil.
Accounts Receivable was $596 Mil.
Revenue was 2933.98014098 + 3556.80245965 + 2872.00306396 + 2796.9762419 = $12,160 Mil.
Gross Profit was 1356.55271735 + 1646.65641814 + 1346.22749904 + 1325.59395248 = $5,675 Mil.
Total Current Assets was $3,249 Mil.
Total Assets was $16,202 Mil.
Property, Plant and Equipment(Net PPE) was $3,734 Mil.
Depreciation, Depletion and Amortization(DDA) was $548 Mil.
Selling, General & Admin. Expense(SGA) was $3,988 Mil.
Total Current Liabilities was $2,664 Mil.
Long-Term Debt was $4,453 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)
=(461.689909762 / 10266.6679095) / (595.846282119 / 12159.7619065)
=0.04496979 / 0.04900148
=0.9177

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)
=(740.057160566 / 12159.7619065) / (1034.15914684 / 10266.6679095)
=0.46670573 / 0.46346687
=1.007

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 - (2226.02132896 + 3091.91140279) / 13326.0049221) / (1 - (3248.76828621 + 3733.57083302) / 16201.6978701)
=0.60093571 / 0.56903658
=1.0561

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
=10266.6679095 / 12159.7619065
=0.8443

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 + 3733.57083302)) / (478.564787714 / (478.564787714 + 3091.91140279))
=0.12802986 / 0.13403388
=0.9552

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)
=(3224.55125008 / 10266.6679095) / (3988.26437794 / 12159.7619065)
=0.31407963 / 0.32798869
=0.9576

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)
=((4336.53814602 + 1933.65053322) / 13326.0049221) / ((4453.49806716 + 2664.21587205) / 16201.6978701)
=0.47052276 / 0.43931901
=1.071

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
=(749.203878577 - -109.541757048 - 1680.79611584) / 13326.0049221
=-0.0617

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 -2.98 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

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 0.880.98730.91170.87221.08660.95971.13091.03720.98260.9177
GMI 0.9870.98040.97420.97870.99471.00031.00791.00751.0061.007
AQI 0.93491.0440.99981.01211.20041.0661.0631.05331.03751.0561
SGI 1.17711.12681.1231.07761.05711.0741.09041.10820.91890.8443
DEPI 0.61260.57121.27591.27551.34431.30630.97670.90781.00120.9552
SGAI 1.0411.03081.01661.02131.04451.03721.02111.00190.97010.9576
LVGI 1.08831.13721.24671.29971.25981.23911.19481.16621.06541.071
TATA -0.1131-0.1171-0.0561-0.0537-0.0428-0.0441-0.0445-0.0421-0.0541-0.0617
M-score -3.08-3.02-2.78-2.86-2.52-2.68-2.53-2.59-2.82-2.98
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