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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.

During the past 13 years, the highest Beneish M-Score of Coca-Cola Femsa SAB de CV was 3.06. The lowest was -3.45. And the median was -2.25.


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 local exchange's currency.

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $500 Mil.
Revenue was 2200.78363716 + 2141.0650913 + 2104.16158545 + 2510.1349768 = $8,956 Mil.
Gross Profit was 980.949510487 + 988.752961863 + 959.427803271 + 1193.52533158 = $4,123 Mil.
Total Current Assets was $2,473 Mil.
Total Assets was $12,480 Mil.
Property, Plant and Equipment(Net PPE) was $2,982 Mil.
Depreciation, Depletion and Amortization(DDA) was $0 Mil.
Selling, General & Admin. Expense(SGA) was $2,814 Mil.
Total Current Liabilities was $1,936 Mil.
Long-Term Debt was $3,628 Mil.
Net Income was 117.701469579 + 107.270368504 + 136.015836373 + 194.322069644 = $555 Mil.
Non Operating Income was -46.457003887 + -76.5527667285 + -4.9346863071 + -95.6085672775 = $-224 Mil.
Cash Flow from Operations was 0 + 0 + 0 + 0 = $0 Mil.
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.



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)
=(500.322185038 / 8956.14529071) / (421.172655846 / 8519.19647748)
=0.05586356 / 0.04943807
=

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)
=(3969.29545634 / 8519.19647748) / (4122.6556072 / 8956.14529071)
=0.46592369 / 0.46031585
=

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 - (2472.82213307 + 2982.08235465) / 12480.0972791) / (1 - (2270.72161153 + 2852.06102609) / 12636.0704805)
=0.5629117 / 0.59459053
=

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
=8956.14529071 / 8519.19647748
=

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 + 2852.06102609)) / (0 / (0 + 2982.08235465))
=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)
=(2814.2470256 / 8956.14529071) / (2652.37813559 / 8519.19647748)
=0.31422525 / 0.31134135
=

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)
=((3627.59566817 + 1936.22814858) / 12480.0972791) / ((4086.9544561 + 1938.92640168) / 12636.0704805)
=0.44581574 / 0.47687933
=

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
=(555.3097441 - -223.5530242 - 0) / 12480.0972791
=0.0624

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 local exchange's currency.

Coca-Cola Femsa SAB de CV Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.10051.22320.92930.91391.06571.12560.58981.11.06730.9436
GMI 1.02790.98971.02331.01231.00451.00950.98780.99371.0070.982
AQI 0.9540.91530.9990.95450.96581.05730.90871.20041.03750.9592
SGI 1.04551.2010.96861.2921.04511.08431.26841.04420.84590.8799
DEPI 0.85851.16141.19350.95970.96811.12620.83830.97541.00120.9761
SGAI 0.98041.00880.96791.01710.9580.99721.05741.04640.9670.9964
LVGI 0.90880.93150.98870.88930.94760.95551.17751.25981.06541.0157
TATA -0.0459-0.0295-0.0299-0.0642-0.0306-0.0161-0.0581-0.0422-0.058-0.0469
M-score -2.55-2.23-2.67-2.58-2.51-2.31-3.02-2.56-2.82-2.89

Coca-Cola Femsa SAB de CV Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI
GMI
AQI
SGI
DEPI
SGAI
LVGI
TATA
M-score
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