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Coca-Cola Femsa SAB de CV (NYSE:KOF)
Beneish M-Score
-2.52 (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 -2.56 suggests that the company is not a manipulator.

KOF' s 10-Year Beneish M-Score Range
Min: -4.01   Max: 1.68
Current: -2.52

-4.01
1.68

During the past 13 years, the highest Beneish M-Score of Coca-Cola Femsa SAB de CV was 1.68. The lowest was -4.01. And the median was -2.53.


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 * 1.0422+0.528 * 1.0079+0.404 * 1.0533+0.892 * 1.0779+0.115 * 1.3433
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0005+4.679 * -0.0416-0.327 * 1.1662
=-2.56

* 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 $641 Mil.
Revenue was 3099.59568233 + 3189.34064073 + 2962.27137063 + 3499.77310543 = $12,751 Mil.
Gross Profit was 1452.94706777 + 1504.68771649 + 1369.63342772 + 1620.25412192 = $5,948 Mil.
Total Current Assets was $3,486 Mil.
Total Assets was $16,314 Mil.
Property, Plant and Equipment(Net PPE) was $3,805 Mil.
Depreciation, Depletion and Amortization(DDA) was $539 Mil.
Selling, General & Admin. Expense(SGA) was $4,110 Mil.
Total Current Liabilities was $2,660 Mil.
Long-Term Debt was $4,445 Mil.
Net Income was 248.006231685 + 206.213341133 + 176.781204561 + 245.878081985 = $877 Mil.
Non Operating Income was -26.855595534 + -22.0915374786 + -2.52544577944 + -64.1355316896 = $-116 Mil.
Cash Flow from Operations was 0 + 0 + 0 + 1671.22976857 = $1,671 Mil.
Accounts Receivable was $571 Mil.
Revenue was 2885.92980296 + 2922.03416392 + 2749.54940193 + 3271.66036547 = $11,829 Mil.
Gross Profit was 1352.75554187 + 1387.08666353 + 1273.7997706 + 1547.4952741 = $5,561 Mil.
Total Current Assets was $3,587 Mil.
Total Assets was $14,938 Mil.
Property, Plant and Equipment(Net PPE) was $3,507 Mil.
Depreciation, Depletion and Amortization(DDA) was $702 Mil.
Selling, General & Admin. Expense(SGA) was $3,811 Mil.
Total Current Liabilities was $2,803 Mil.
Long-Term Debt was $2,776 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)
=(641.492636967 / 12750.9807991) / (571.043719212 / 11829.1737343)
=0.05030928 / 0.04827418
=1.0422

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)
=(1504.68771649 / 11829.1737343) / (1452.94706777 / 12750.9807991)
=0.47012052 / 0.46643646
=1.0079

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 - (3485.51504136 + 3805.33402574) / 16313.661486) / (1 - (3587.28448276 + 3506.9273399) / 14938.3466749)
=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
=12750.9807991 / 11829.1737343
=1.0779

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))
=(701.895454636 / (701.895454636 + 3506.9273399)) / (539.404023597 / (539.404023597 + 3805.33402574))
=0.16676764 / 0.1241511
=1.3433

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)
=(4110.04237254 / 12750.9807991) / (3810.89032781 / 11829.1737343)
=0.32233147 / 0.32216031
=1.0005

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)
=((4444.82362105 + 2660.11350569) / 16313.661486) / ((2776.01600985 + 2802.64778325) / 14938.3466749)
=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
=(876.878859364 - -115.608110482 - 1671.22976857) / 16313.661486
=-0.0416

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 -2.56 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 0.90871.04931.30971.39210.970.91391.06571.12560.58981.5633
GMI 1.02470.98481.03210.98991.02311.01231.00451.00950.98780.9937
AQI 1.0131.04510.95840.9330.96470.95310.96581.05730.90871.2004
SGI 1.26421.15381.10531.20530.94131.34241.06331.09241.24871.014
DEPI 1.09560.66830.79761.14781.26960.96210.96811.12620.83830.9754
SGAI 1.03321.00020.98141.01070.96611.01710.9580.99721.05741.0464
LVGI 0.83720.84850.91790.92360.99250.88930.94760.95551.17751.2598
TATA -0.0525-0.0408-0.0481-0.0297-0.0299-0.0642-0.0285-0.0161-0.0581-0.0422
M-score -2.50-2.47-2.32-2.07-2.66-2.54-2.49-2.30-3.04-2.16

Coca-Cola Femsa SAB de CV Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 1.04951.14130.63031.01940.88130.871.49390.9561.13781.0422
GMI 1.01011.00110.98720.9810.97390.97830.99420.99961.00831.0079
AQI 1.09821.11050.90871.0440.99981.01211.20041.0661.0631.0533
SGI 1.14671.18221.16841.14431.13311.08341.06111.0631.06711.0779
DEPI 1.02011.1350.83830.89180.59540.60660.70120.69281.45021.3433
SGAI 2.24313.30394.53453.80411.90881.33731.04651.03861.01951.0005
LVGI 0.90830.921.17751.13721.24671.29971.25981.23911.19481.1662
TATA -0.02460.0112-0.1137-0.0839-0.1096-0.1042-0.0882-0.0889-0.0429-0.0416
M-score -2.56-2.44-3.93-3.26-3.28-3.22-2.43-2.97-2.48-2.56
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