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Arca ContinentalB de CV (FRA:AJZ) Beneish M-Score : -2.78 (As of May. 12, 2024)


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What is Arca ContinentalB de CV Beneish M-Score?

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 -2.78 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

FRA:AJZ' s Beneish M-Score Range Over the Past 10 Years
Min: -3.18   Med: -2.7   Max: -1.56
Current: -2.78

During the past 13 years, the highest Beneish M-Score of Arca ContinentalB de CV was -1.56. The lowest was -3.18. And the median was -2.70.


Arca ContinentalB de CV Beneish M-Score Historical Data

The historical data trend for Arca ContinentalB de CV'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.

Arca ContinentalB de CV Beneish M-Score Chart

Arca ContinentalB de CV Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.92 -2.93 -2.48 -2.61 -2.66

Arca ContinentalB de CV Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Beneish M-Score Get a 7-Day Free Trial 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 -2.49 -2.60 -2.52 -2.66 -2.78

Competitive Comparison of Arca ContinentalB de CV's Beneish M-Score

For the Beverages - Non-Alcoholic subindustry, Arca ContinentalB de CV'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.


Arca ContinentalB de CV's Beneish M-Score Distribution in the Beverages - Non-Alcoholic Industry

For the Beverages - Non-Alcoholic industry and Consumer Defensive sector, Arca ContinentalB de CV's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Arca ContinentalB de CV's Beneish M-Score falls into.



Arca ContinentalB de CV 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 Arca ContinentalB 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 * 0.9336+0.528 * 0.9672+0.404 * 0.9927+0.892 * 1.1058+0.115 * 1.0607
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0106+4.679 * -0.053595-0.327 * 0.9874
=-2.71

* 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 (Mar24) TTM:Last Year (Mar23) TTM:
Total Receivables was €1,006 Mil.
Revenue was 2812.87 + 2816.012 + 3061.375 + 3017.693 = €11,708 Mil.
Gross Profit was 1309.336 + 1294.582 + 1409.065 + 1388.804 = €5,402 Mil.
Total Current Assets was €3,053 Mil.
Total Assets was €13,402 Mil.
Property, Plant and Equipment(Net PPE) was €3,785 Mil.
Depreciation, Depletion and Amortization(DDA) was €445 Mil.
Selling, General, & Admin. Expense(SGA) was €3,602 Mil.
Total Current Liabilities was €2,537 Mil.
Long-Term Debt & Capital Lease Obligation was €2,184 Mil.
Net Income was 208.482 + 245.462 + 244.067 + 252.651 = €951 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = €0 Mil.
Cash Flow from Operations was 331.121 + 398.554 + 464.575 + 474.666 = €1,669 Mil.
Total Receivables was €975 Mil.
Revenue was 2626.287 + 2653.942 + 2797.904 + 2509.286 = €10,587 Mil.
Gross Profit was 1194.763 + 1156.899 + 1260.045 + 1112.678 = €4,724 Mil.
Total Current Assets was €3,083 Mil.
Total Assets was €12,952 Mil.
Property, Plant and Equipment(Net PPE) was €3,478 Mil.
Depreciation, Depletion and Amortization(DDA) was €437 Mil.
Selling, General, & Admin. Expense(SGA) was €3,223 Mil.
Total Current Liabilities was €2,550 Mil.
Long-Term Debt & Capital Lease Obligation was €2,072 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)
=(1006.49 / 11707.95) / (974.909 / 10587.419)
=0.085966 / 0.092082
=0.9336

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)
=(4724.385 / 10587.419) / (5401.787 / 11707.95)
=0.446226 / 0.461378
=0.9672

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 - (3052.664 + 3784.647) / 13401.586) / (1 - (3083.181 + 3478.31) / 12952.249)
=0.489813 / 0.493409
=0.9927

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
=11707.95 / 10587.419
=1.1058

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))
=(436.987 / (436.987 + 3478.31)) / (445.084 / (445.084 + 3784.647))
=0.11161 / 0.105227
=1.0607

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)
=(3601.862 / 11707.95) / (3222.852 / 10587.419)
=0.307642 / 0.304404
=1.0106

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)
=((2184.346 + 2536.687) / 13401.586) / ((2071.62 + 2549.559) / 12952.249)
=0.352274 / 0.356786
=0.9874

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
=(950.662 - 0 - 1668.916) / 13401.586
=-0.053595

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.

Arca ContinentalB de CV has a M-score of -2.71 suggests that the company is unlikely to be a manipulator.


Arca ContinentalB de CV Beneish M-Score Related Terms

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Arca ContinentalB de CV (FRA:AJZ) Business Description

Traded in Other Exchanges
Address
Avenue San Jeronimo 813 Pte, Monterrey, NL, MEX, 64640
Arca Continental is a major bottler for Coca-Cola, generating 94% of sales and nearly all profits by manufacturing and distributing sodas and nonsparkling drinks under Coca-Cola brands, which it sells to retailers and foodservice providers in the U.S. and Latin America. Food and snacks under Arca's own brands make up the rest of its business. By region, Mexico remains the largest beverage market contributing 40% of sales, followed by the U.S. (35%), Peru (8%), Ecuador (6%), and Argentina (5%). Coca-Cola has a 20% stake in AC Beverages, the entity that holds Arca's beverage assets in the U.S. and Latin America.

Arca ContinentalB de CV (FRA:AJZ) Headlines

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