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MercadoLibre Beneish M-Score

: -1.98 (As of Today)
View and export this data going back to 2007. Start your Free Trial

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 -1.98 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:

NAS:MELI' s Beneish M-Score Range Over the Past 10 Years
Min: -3.51   Med: -2.54   Max: 6.5
Current: -1.98

-3.51
6.5

During the past 13 years, the highest Beneish M-Score of MercadoLibre was 6.50. The lowest was -3.51. And the median was -2.54.


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 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.68 -2.97 -2.54 -2.95 -2.96

MercadoLibre Quarterly Data
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
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 -3.12 -2.96 -2.75 -1.80 -1.98

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 into.



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 * 0.9142+0.528 * 1.0922+0.404 * 1.2526+0.892 * 1.8871+0.115 * 1.1186
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.7923+4.679 * -0.0558-0.327 * 1.452
=-1.98

* 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 (Sep21) TTM:Last Year (Sep20) TTM:
Accounts Receivable was $71 Mil.
Revenue was 1857.452 + 1702.75 + 1378.441 + 1327.304 = $6,266 Mil.
Gross Profit was 806.59 + 753.92 + 591.377 + 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 $169 Mil.
Selling, General, & Admin. Expense(SGA) was $1,721 Mil.
Total Current Liabilities was $4,287 Mil.
Long-Term Debt & Capital Lease Obligation was $2,278 Mil.
Net Income was 95.225 + 68.195 + -34.012 + -50.58 = $79 Mil.
Non Operating Income was -25.202 + -12.091 + -15.089 + -9.93 = $-62 Mil.
Cash Flow from Operations was 265.306 + 262.038 + -262.997 + 256.557 = $521 Mil.
Accounts Receivable was $41 Mil.
Revenue was 1115.701 + 878.369 + 652.091 + 674.271 = $3,320 Mil.
Gross Profit was 480.19 + 427.172 + 312.814 + 308.347 = $1,529 Mil.
Total Current Assets was $4,924 Mil.
Total Assets was $5,738 Mil.
Property, Plant and Equipment(Net PPE) was $528 Mil.
Depreciation, Depletion and Amortization(DDA) was $93 Mil.
Selling, General, & Admin. Expense(SGA) was $1,151 Mil.
Total Current Liabilities was $3,007 Mil.
Long-Term Debt & Capital Lease Obligation was $807 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Accounts Receivable 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)
=(70.542 / 6265.947) / (40.891 / 3320.432)
=0.011258 / 0.01231496
=0.9142

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)
=(1528.523 / 3320.432) / (2640.921 / 6265.947)
=0.46033859 / 0.42147197
=1.0922

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 - (5283.121 + 1092.334) / 6800.017) / (1 - (4923.891 + 527.834) / 5737.719)
=0.06243543 / 0.04984455
=1.2526

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
=6265.947 / 3320.432
=1.8871

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))
=(93.238 / (93.238 + 527.834)) / (169.317 / (169.317 + 1092.334))
=0.1501243 / 0.13420272
=1.1186

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)
=(1720.98 / 6265.947) / (1151.087 / 3320.432)
=0.27465601 / 0.34666784
=0.7923

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)
=((2277.726 + 4286.531) / 6800.017) / ((807.435 + 3007.26) / 5737.719)
=0.9653295 / 0.66484521
=1.452

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
=(78.828 - -62.312 - 520.904) / 6800.017
=-0.0558

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 -1.98 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 Business Description

MercadoLibre logo
Industry
Consumer Cyclical » Retail - Cyclical NAICS : 454110 SIC : 5961
Address
Pasaje Posta 4789, 6th Floor, Buenos Aires, ARG, C1430EKG
Founded in 1999, MercadoLibre's commerce segment (representing 64% of net revenue in 2020) includes online marketplaces in more than a dozen Latin American countries, display and paid search advertising capabilities (MercadoClics), online store management services (MercadoShops), and third-party logistics solutions (MercadoEnvios). Its fintech segment includes an online/offline payment-processing platform (MercadoPago), mobile wallet platform, credit solutions for buyers/sellers, and asset management offerings (Mercado Fondo). The company derives more than 95% of its revenue from Brazil, Argentina, and Mexico.
Executives
Aguzin Alejandro Nicolas director ARIAS 3751, 7TH FLOOR BUENOS AIRES C1 C1430DNN
Calemzuk Emiliano director C/O MERCADOLIBRE, INC. TRONADOR 4890, 8TH FLOOR BUENOS AIRES C1 C1430DNN
Segal Susan director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: SEGAL SUSAN a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Vazquez Mario director TRONADOR 4890, 8TH FLOOR BUENOS AIRES C1 430DNN
Malka Meyer director C/O MERCADOLIBRE, INC. ARIAS 3751, 7TH FLOOR BUENOS AIRES C1 C1C1430CRG
Sallouti Roberto Balls director ARIAS 3751, 7TH FLOOR BUENOS AIRES C1 C1 C1430CRG
Galperin Marcos director, officer: President and CEO C/O MERCADOLIBRE, INC. TRONADOR 4890, 8TH FLOOR BUENOS AIRES C1 C1430DNN
Tolda Stelleo officer: Executive VP and COO C/O MERCADOLIBRE, INC. TRONADOR 4890, 8TH FLOOR BUENOS AIRES C1 C1430DNN
Ebay Inc 10 percent owner 2025 HAMILTON AVENUE SAN JOSE CA 95125
Rabinovich Daniel officer: EVP-Chief Technology Officer ARIAS 3751, 7TH FLOOR BUENOS AIRES C1 C1430CRG
Melamud Marcelo officer: VP - Chief Accounting Officer TRONADOR 4890, 8TH FLOOR BUENOS AIRES C1 C1430DNN
Spence A Michael director 121 INNOVATION DR STE 200 IRVINE CA 92612
Arnt Pedro officer: Executive VP and CFO ARIAS 3751, 7TH FLOOR BUENOS AIRES C1 C1430CRG
Osvaldo Gimenez officer: Executive VP - Payments TRONADOR 4890, 8TH FLOOR BUENOS AIRES C1 C1430DNN
Olivan Javier director 62 RIDGE VIEW DRIVE ATHERTON X1 94027

MercadoLibre Headlines

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