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MercadoLibre (NAS:MELI) Beneish M-Score

: -2.29 (As of Today)
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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.

Good Sign:

Beneish M-Score -2.29 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

MELI' s Beneish M-Score Range Over the Past 10 Years
Min: -3.92   Med: -2.32   Max: 6.5
Current: -2.29

During the past 13 years, the highest Beneish M-Score of MercadoLibre was 6.50. The lowest was -3.92. And the median was -2.32.


MercadoLibre Beneish M-Score Historical Data

The historical data trend for MercadoLibre's Beneish M-Score can be seen below:

* 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.

* Premium members only.

MercadoLibre Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.48 -2.88 -2.82 -2.61 -1.90

MercadoLibre Quarterly Data
Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22
Beneish M-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -1.63 -1.90 -1.47 -1.99 -2.29

Competitive Comparison

For the Internet Retail subindustry, MercadoLibre's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

MercadoLibre Beneish M-Score Distribution

For the Retail - Cyclical industry and Consumer Cyclical sector, MercadoLibre's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where MercadoLibre's Beneish M-Score falls in comparison to its industry or sector. The grey bar indicates the Beneish M-Score's extreme value range as defined by GuruFocus.



MercadoLibre 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 MercadoLibre 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 * 1.2506+0.528 * 0.8937+0.404 * 1.4447+0.892 * 1.5424+0.115 * 0.726
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0886+4.679 * -0.1368-0.327 * 0.8843
=-2.29

* 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 (Sep22) TTM:Last Year (Sep21) TTM:
Total Receivables was $4,382 Mil.
Revenue was 2690 + 2597 + 2248 + 2130.409 = $9,665 Mil.
Gross Profit was 1348 + 1284 + 1073 + 853.052 = $4,558 Mil.
Total Current Assets was $9,351 Mil.
Total Assets was $11,962 Mil.
Property, Plant and Equipment(Net PPE) was $1,532 Mil.
Depreciation, Depletion and Amortization(DDA) was $348 Mil.
Selling, General, & Admin. Expense(SGA) was $2,576 Mil.
Total Current Liabilities was $7,002 Mil.
Long-Term Debt & Capital Lease Obligation was $3,209 Mil.
Net Income was 129 + 123 + 65 + -45.696 = $271 Mil.
Non Operating Income was -71 + -60 + -3 + -57.333 = $-191 Mil.
Cash Flow from Operations was 724 + 907 + -233 + 701.043 = $2,099 Mil.
Total Receivables was $2,272 Mil.
Revenue was 1858 + 1703 + 1378 + 1327.304 = $6,266 Mil.
Gross Profit was 807 + 754 + 591 + 489.034 = $2,641 Mil.
Total Current Assets was $5,283 Mil.
Total Assets was $6,800 Mil.
Property, Plant and Equipment(Net PPE) was $1,092 Mil.
Depreciation, Depletion and Amortization(DDA) was $170 Mil.
Selling, General, & Admin. Expense(SGA) was $1,534 Mil.
Total Current Liabilities was $4,287 Mil.
Long-Term Debt & Capital Lease Obligation was $2,278 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)
=(4382 / 9665.409) / (2271.749 / 6266.304)
=0.45336933 / 0.36253412
=1.2506

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)
=(2641.034 / 6266.304) / (4558.052 / 9665.409)
=0.42146599 / 0.47158398
=0.8937

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 - (9351 + 1532) / 11962) / (1 - (5283.121 + 1092.334) / 6800.017)
=0.09020231 / 0.06243543
=1.4447

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
=9665.409 / 6266.304
=1.5424

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))
=(169.556 / (169.556 + 1092.334)) / (347.942 / (347.942 + 1532))
=0.1343667 / 0.18508124
=0.726

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)
=(2576.021 / 9665.409) / (1534.171 / 6266.304)
=0.26651961 / 0.24482869
=1.0886

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)
=((3209 + 7002) / 11962) / ((2277.726 + 4286.531) / 6800.017)
=0.8536198 / 0.9653295
=0.8843

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
=(271.304 - -191.333 - 2099.043) / 11962
=-0.1368

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.

MercadoLibre has a M-score of -2.29 suggests that the company is unlikely to be a manipulator.


MercadoLibre Beneish M-Score Related Terms

Thank you for viewing the detailed overview of MercadoLibre's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


MercadoLibre (NAS:MELI) Business Description

MercadoLibre logo
Address
WTC Free Zone, Dr. Luis Bonavita 1294, Of. 1733, Tower II, Montevideo, URY, 11300
MercadoLibre runs the largest e-commerce marketplace in Latin America, connecting a network of more than 140 million active users and 1 million active sellers as of the end of 2021 across an 18-country footprint. The company also operates a host of complementary businesses, with shipping solutions (Mercado Envios), a payment and financing operation (Mercado Pago), advertisements (Mercado Clics), classifieds, and a turnkey e-commerce solution (Mercado Shops) rounding out its arsenal. MercadoLibre generates revenue from final value fees, advertising royalties, payment processing, insertion fees, subscription fees, and interest income from consumer and small-business lending.
Executives
Petroni Merhy Andrea Mayumi director HOUSE B, 32 STANLEY VILLAGE ROAD, STANLEY K3 000000
De La Serna Juan Martin officer: Executive VP Corporate Affairs AV. PTE. PERON 2375, LOTE MN04, PILAR, BUENOS AIRES C1 1629
Richard A Sanders director 80 PALL MALL, LONDON X0 SW1Y 5ES
Ariel Szarfsztejn officer: Executive VP - Commerce POSTA 4789, 6TH FLOOR, BUENOS AIRES C1 C1430CRG
Henrique Vasoncelos Dubugras director 1000 LAUREL WAY, BEVERLY HILLS CA 90210
Meyer Malka director C/O MERCADOLIBRE, INC., ARIAS 3751, 7TH FLOOR, BUENOS AIRES C1 C1C1430CRG
Roberto Balls Sallouti director ARIAS 3751, 7TH FLOOR, BUENOS AIRES C1 C1 C1430CRG
Emiliano Calemzuk director C/O MERCADOLIBRE, INC., TRONADOR 4890, 8TH FLOOR, BUENOS AIRES C1 C1430DNN
Alejandro Nicolas Aguzin director ARIAS 3751, 7TH FLOOR, BUENOS AIRES C1 C1430DNN
Ebay Inc 10 percent owner 2025 HAMILTON AVENUE, SAN JOSE CA 95125
Javier Olivan director 62 RIDGE VIEW DRIVE, ATHERTON X1 94027
Susan Segal director
Pedro Arnt officer: Executive VP and CFO ARIAS 3751, 7TH FLOOR, BUENOS AIRES C1 C1430CRG
Daniel Rabinovich officer: VP-Chief Technology Officer ARIAS 3751, 7TH FLOOR, BUENOS AIRES C1 C1430CRG
Marcelo Melamud officer: V. P. Chief Accounting Officer TRONADOR 4890, 8TH FLOOR, BUENOS AIRES C1 C1430DNN

MercadoLibre (NAS:MELI) Headlines

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