Mexico Fund (Mexico Fund) Beneish M-Score : -1.31 (As of May. 04, 2024)

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What is Mexico Fund Beneish M-Score?

Note: Financial institutions were excluded from the sample in Beneish paper when calculating Beneish M-Score. Thus, the prediction might not fit banks and insurance companies.

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Warning Sign:

Beneish M-Score -1.31 higher than -1.78, which implies that the company might have manipulated its financial results.

The historical rank and industry rank for Mexico Fund's Beneish M-Score or its related term are showing as below:

MXF' s Beneish M-Score Range Over the Past 10 Years
Min: -1.31 Med: 5765.32 Max: 11531.95
Current: -1.31

During the past 7 years, the highest Beneish M-Score of Mexico Fund was 11531.95. The lowest was -1.31. And the median was 5765.32.

Mexico Fund Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski 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 Mexico Fund for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 0.4053

0.528 * 1

0.404 * 1.0016

0.892 * 2.18

0.115 * 1

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.4921

4.679 * 0.113328

0.327 * 0.8546

-1.31

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Oct23) TTM:

Last Year (Oct22) TTM:

Total Receivables was $2.18 Mil.
Revenue was $32.95 Mil.
Gross Profit was $32.95 Mil.
Total Current Assets was $2.18 Mil.
Total Assets was $280.52 Mil.
Property, Plant and Equipment(Net PPE) was $0.00 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.00 Mil.
Selling, General, & Admin. Expense(SGA) was $1.13 Mil.
Total Current Liabilities was $0.24 Mil.
Long-Term Debt & Capital Lease Obligation was $0.00 Mil.
Net Income was $31.79 Mil.
Gross Profit was $0.00 Mil.
Cash Flow from Operations was $0.00 Mil.

Total Receivables was $2.46 Mil.
Revenue was $15.12 Mil.
Gross Profit was $15.12 Mil.
Total Current Assets was $2.46 Mil.
Total Assets was $264.69 Mil.
Property, Plant and Equipment(Net PPE) was $0.00 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.00 Mil.
Selling, General, & Admin. Expense(SGA) was $1.06 Mil.
Total Current Liabilities was $0.26 Mil.
Long-Term Debt & Capital Lease Obligation was $0.00 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total 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)
	=	(2.177 / 32.951)	/	(2.464 / 15.115)
	=	0.066068	/	0.163017
	=	0.4053

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)
	=	(15.115 / 15.115)	/	(32.951 / 32.951)
	=	1	/	1
	=	1

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 Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (2.177 + 0) / 280.521)	/	(1 - (2.464 + 0) / 264.692)
	=	0.992239	/	0.990691
	=	1.0016

4. SGI = Sales Growth Index

Ratio of Revenue 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
	=	32.951	/	15.115
	=	2.18

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization 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 + 0))	/	(0 / (0 + 0))
	=		/
	=	1

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales 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)
	=	(1.134 / 32.951)	/	(1.057 / 15.115)
	=	0.034415	/	0.069931
	=	0.4921

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 in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((0 + 0.239) / 280.521)	/	((0 + 0.264) / 264.692)
	=	0.000852	/	0.000997
	=	0.8546

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
	=	(31.791 - 0	-	0)	/	280.521
	=	0.113328

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Mexico Fund has a M-score of -1.31 signals that the company is likely to be a manipulator.

Mexico Fund Beneish M-Score Related Terms

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Mexico Fund (Mexico Fund) Business Description

Industry

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Comparable Companies

Traded in Other Exchanges

N/A

Address

6700 Alexander Bell Drive, Suite 200, Columbia, MD, USA, 21046

Website

https://www.themexicofund.com

Mexico Fund Inc is a United States based non-diversified, closed-end management investment company. Its investment objective is to seek long-term capital appreciation. The fund seeks to achieve its objective through investment in securities, primary in equity, listed on the Mexican Stock Exchange. Its portfolio of investment consists of investment in different sectors such as auto parts, airports, building materials, chemical products, consumer products, energy, food and other sectors. The fund provides a vehicle to investors who wish to invest in Mexican companies through a managed non-diversified portfolio as part of their overall investment program.

Executives

Tofi Dayan	officer: Treasurer	77 ARISTOTELES STREET, 3RD FLOOR, POLANO O5 11560
Claudia Janez	director	BOSQUE DE ZAPOTES 12, BOSQUES DE LAS LOMAS, CIUDAD DE MEXICO O5 11700
Alberto Gomez Pimienta	officer: Operations Vice President	THE MEXICO FUND, INC., 1775 I STREET, NW, WASHINGTON DC 20006
Alberto Osorio	officer: Sr VP, Treasurer and CFO	C/O MEXICO FUND, 1775 I STREET NW, WASHINGTON DC 20006
Jorge Alamillo	officer: Chief Compliance Officer	77 ARISTOTELES STREET, 3RD FLOOR, POLANCO MEXICO DF O5 11560
Edward P Djerejian	director	2027 SUNSET BOULEVARD, HOUSTON TX 77005
Jonathan Davis Arzac	director	MONTE PELVOUX 220 PISO 6, LOMAS DE CHAPULTEPEC O5 11000
Marc J Shapiro	director	J.P. MORGAN CHASE & CO., 270 PARK AVENUE, NEW YORK NY 10017
Impulsora Del Fondo Mexico Sa De Cv	other: Investment Adviser	77 ARISTOTELES, POLANCO MEXICO DF O5 11560
Robert L Knauss	director	5151 SAN FELIPE, SUITE 1661, HOUSTON TX 77056
Emilio Carrillo Gamboa	director	C/O DECHERT,1775 EYE STREET NW, 1775 EYE STREET NW, WASHINGTON DC 20006
Eugenio Clariond	director	VASCONCELOS 220 OTE., COL. RESIDENCIAL SAN AGUSTIN, SAN PEDRO GARZA GARCIA, N.L. O5 66260
Gomez Pimienta Jose Luis	director	77 ARISTOTELES, 3RD FLOOR, POLANCO D.F. O5 11560
Puche Jaime Serra	director	C/O DECHERT,1775 EYE STREET NW, 1775 EYE STREET NW, WASHINGTON DC 20006
Jose Luis Gomez Pimienta	director