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Coca-Cola Co Beneish M-Score

: -2.47 (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 -2.47 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

KO' s Beneish M-Score Range Over the Past 10 Years
Min: -2.97   Med: -2.62   Max: -2.06
Current: -2.47

During the past 13 years, the highest Beneish M-Score of Coca-Cola Co was -2.06. The lowest was -2.97. And the median was -2.62.


Coca-Cola Co Beneish M-Score Historical Data

The historical data trend for Coca-Cola Co'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.

Coca-Cola Co 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 -2.71 -2.33 -2.51 -2.85 -2.65

Coca-Cola Co Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
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 -2.70 -2.72 -2.65 -2.43 -2.47

Competitive Comparison

For the Beverages - Non-Alcoholic subindustry, Coca-Cola Co'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.

   

Coca-Cola Co Beneish M-Score Distribution

For the Beverages - Non-Alcoholic industry and Consumer Defensive sector, Coca-Cola Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Coca-Cola Co's Beneish M-Score falls into.



Coca-Cola Co 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 Coca-Cola Co 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 * 0.9812+0.528 * 1.0292+0.404 * 1.0256+0.892 * 1.1348+0.115 * 1.0193
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0317+4.679 * -0.0249-0.327 * 1.0064
=-2.47

* 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 (Jun22) TTM:Last Year (Jun21) TTM:
Total Receivables was $4,494 Mil.
Revenue was 11325 + 10491 + 9464 + 10042 = $41,322 Mil.
Gross Profit was 6495 + 6400 + 5376 + 6065 = $24,336 Mil.
Total Current Assets was $23,141 Mil.
Total Assets was $93,169 Mil.
Property, Plant and Equipment(Net PPE) was $9,462 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,349 Mil.
Selling, General, & Admin. Expense(SGA) was $12,628 Mil.
Total Current Liabilities was $20,531 Mil.
Long-Term Debt & Capital Lease Obligation was $36,755 Mil.
Net Income was 1905 + 2781 + 2414 + 2471 = $9,571 Mil.
Non Operating Income was -891 + 157 + 651 + 328 = $245 Mil.
Cash Flow from Operations was 3923 + 623 + 3394 + 3706 = $11,646 Mil.
Total Receivables was $4,036 Mil.
Revenue was 10129 + 9020 + 8611 + 8652 = $36,412 Mil.
Gross Profit was 6342 + 5515 + 5033 + 5181 = $22,071 Mil.
Total Current Assets was $22,481 Mil.
Total Assets was $90,194 Mil.
Property, Plant and Equipment(Net PPE) was $10,547 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,537 Mil.
Selling, General, & Admin. Expense(SGA) was $10,786 Mil.
Total Current Liabilities was $15,299 Mil.
Long-Term Debt & Capital Lease Obligation was $39,804 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)
=(4494 / 41322) / (4036 / 36412)
=0.10875563 / 0.11084258
=0.9812

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)
=(22071 / 36412) / (24336 / 41322)
=0.60614633 / 0.58893568
=1.0292

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 - (23141 + 9462) / 93169) / (1 - (22481 + 10547) / 90194)
=0.65006601 / 0.63381156
=1.0256

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
=41322 / 36412
=1.1348

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))
=(1537 / (1537 + 10547)) / (1349 / (1349 + 9462))
=0.12719298 / 0.12478032
=1.0193

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)
=(12628 / 41322) / (10786 / 36412)
=0.30559992 / 0.29622103
=1.0317

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)
=((36755 + 20531) / 93169) / ((39804 + 15299) / 90194)
=0.61486117 / 0.61093864
=1.0064

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
=(9571 - 245 - 11646) / 93169
=-0.0249

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.

Coca-Cola Co has a M-score of -2.47 suggests that the company is unlikely to be a manipulator.


Coca-Cola Co Beneish M-Score Related Terms

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


Coca-Cola Co Business Description

Coca-Cola Co logo
Address
One Coca-Cola Plaza, Atlanta, GA, USA, 30313
Coca-Cola is the largest nonalcoholic beverage entity in the world, owning and marketing some of the leading carbonated beverage brands, such as Coke, Fanta, and Sprite, as well as nonsparkling brands, such as Minute Maid, Georgia Coffee, Costa, and Glaceau. Operationally, the firm focuses its manufacturing efforts early in the supply chain, making the concentrate (or beverage bases) for its drinks that are then processed and distributed by its network of more than 100 bottlers. Concentrate operations represent roughly 85% of the company's unit case volume. The firm generates most of its revenue internationally, with countries like Mexico, Brazil, and Japan being key markets outside of the U.S.
Executives
Allen Herbert A Iii director ALLEN & COMPANY LLC 711 FIFTH AVENUE NEW YORK NY 10022
Douglas Monica Howard officer: SVP & General Counsel 535 MADISON AVENUE, 20TH FLOOR NEW YORK NY 10022
Braun Henrique other: Operating Unit President C/O THE COCA-COLA COMPANY ONE COCA-COLA PLAZA ATLANTA GA 30313
Gayton Bradley M officer: SVP & General Counsel ONE COCA-COLA PLAZA ATLANTA GA 30313
Loveless Kathy officer: Vice President & Controller C/O THE COCA-COLA COMPANY ONE COCA-COLA PLAZA ATLANTA GA 30313
Chang Lisa other: Chief People Officer THE COCA-COLA COMPANY ONE COCA-COLA PLAZA ATLANTA GA 30313
Arroyo Manuel other: Group President THE COCA-COLA COMPANY ONE COCA-COLA PLAZA ATLANTA GA 30313
Koumettis Nikolaos other: Group President THE COCA-COLA COMPANY ONE COCA-COLA PLAZA ATLANTA GA 30313
Quan Nancy officer: Senior Vice President THE COCA-COLA COMPANY ONE COCA-COLA PLAZA ATLANTA GA 30313
Tsay Caroline J director C/O ROSETTA STONE INC. 1919 NORTH LYNN STREET, 7TH FLOOR ARLINGTON VA 22209
Davis Christopher C director C/O GRAHAM HOLDINGS COMPANY 1300 NORTH 17TH STREET, SUITE 1700 ARLINGTON VA 22209
Dinkins James L officer: Senior Vice President C/O THE COCA-COLA COMPANY ONE COCA-COLA PLAZA ATLANTA GA 30313
Perez Beatriz R officer: Senior Vice President ONE COCA-COLA PLAZA ATLANTA GA 30313
Randazza Mark officer: Principal Accounting Officer THE COCA-COLA COMPANY ONE COCA-COLA PLAZA ATLANTA GA 30313
Long Robert Edward officer: Senior Vice President THE COCA-COLA COMPANY ONE COCA-COLA PLAZA ATLANTA GA 30313

Coca-Cola Co Headlines

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