Coca Cola Consolidated Stock Beneish M Score

COKE Stock  USD 1,231  5.44  0.44%   
This module uses fundamental data of Coca Cola to approximate the value of its Beneish M Score. Coca Cola M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Check out Coca Cola Piotroski F Score and Coca Cola Altman Z Score analysis.
  
At present, Coca Cola's Long Term Debt Total is projected to increase significantly based on the last few years of reporting. The current year's Cash Flow To Debt Ratio is expected to grow to 1.16, whereas Net Debt is forecasted to decline to about 94.9 M. At present, Coca Cola's PTB Ratio is projected to increase slightly based on the last few years of reporting. The current year's Book Value Per Share is expected to grow to 160.80, whereas Days Sales Outstanding is forecasted to decline to 23.56.
At this time, it appears that Coca Cola Consolidated is a possible manipulator. The earnings manipulation may begin if Coca Cola's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Coca Cola executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Coca Cola's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.18
Beneish M Score - Possible Manipulator
Elasticity of Receivables

1.0

Focus
Asset Quality

1.46

Focus
Expense Coverage

1.0

Focus
Gross Margin Strengs

1.18

Focus
Accruals Factor

1.0

Focus
Depreciation Resistance

0.54

Focus
Net Sales Growth

1.05

Focus
Financial Leverage Condition

0.99

Focus

Coca Cola Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Coca Cola's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Net Receivables692.3 M659.3 M
Sufficiently Up
Slightly volatile
Total RevenueB6.7 B
Sufficiently Up
Slightly volatile
Total Assets4.5 B4.3 B
Sufficiently Up
Slightly volatile
Total Current Assets1.8 B1.7 B
Sufficiently Up
Slightly volatile
Non Current Assets Total2.7 B2.6 B
Sufficiently Up
Slightly volatile
Property Plant Equipment684.5 M1.4 B
Way Down
Slightly volatile
Depreciation And Amortization185.8 M177 M
Sufficiently Up
Slightly volatile
Selling General AdministrativeB1.9 B
Sufficiently Up
Slightly volatile
Total Current Liabilities1.1 B1.1 B
Sufficiently Up
Slightly volatile
Non Current Liabilities Total1.1 B1.8 B
Way Down
Slightly volatile
Net Debt94.9 M99.9 M
Notably Down
Very volatile
Short Term Debt24 M28.7 M
Fairly Down
Pretty Stable
Long Term Debt769.8 M599.2 M
Significantly Up
Slightly volatile
Operating Income876.2 M834.5 M
Sufficiently Up
Slightly volatile
Total Cash From Operating Activities851.2 M810.7 M
Sufficiently Up
Slightly volatile
Long Term Investments29.5 M48.2 M
Way Down
Slightly volatile
Gross Profit Margin0.460.3906
Fairly Up
Very volatile

Coca Cola Consolidated Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Coca Cola's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Coca Cola in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Coca Cola's degree of accounting gimmicks and manipulations.

About Coca Cola Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Depreciation And Amortization

185.81 Million

At present, Coca Cola's Depreciation And Amortization is projected to increase significantly based on the last few years of reporting.

Coca Cola Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Coca Cola. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201920202021202220232024 (projected)
Net Receivables525.3M490.1M546.5M606.3M659.3M692.3M
Total Revenue4.8B5.0B5.6B6.2B6.7B7.0B
Total Assets3.1B3.2B3.4B3.7B4.3B4.5B
Total Current Assets830.3M851.2M1.1B1.2B1.7B1.8B
Net Debt1.2B1.1B796.3M557.4M99.9M94.9M
Short Term Debt24.4M25.6M28.1M29.9M28.7M24.0M
Long Term Debt1.0B940.5M723.4M598.8M599.2M769.8M
Operating Income80.2M313.4M288.6M641.0M834.5M876.2M
Investments(1.7M)(1.8M)(2.5M)(325.0M)(275.6M)(261.8M)

Coca Cola ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Coca Cola's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Coca Cola's managers, analysts, and investors.
Environmental
Governance
Social

About Coca Cola Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Coca Cola Consolidated's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Coca Cola using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Coca Cola Consolidated based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.

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When determining whether Coca Cola Consolidated is a strong investment it is important to analyze Coca Cola's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Coca Cola's future performance. For an informed investment choice regarding Coca Stock, refer to the following important reports:
Check out Coca Cola Piotroski F Score and Coca Cola Altman Z Score analysis.
You can also try the Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Is Soft Drinks & Non-alcoholic Beverages space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Coca Cola. If investors know Coca will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Coca Cola listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.345
Dividend Share
2
Earnings Share
57.7
Revenue Per Share
737.17
Quarterly Revenue Growth
0.031
The market value of Coca Cola Consolidated is measured differently than its book value, which is the value of Coca that is recorded on the company's balance sheet. Investors also form their own opinion of Coca Cola's value that differs from its market value or its book value, called intrinsic value, which is Coca Cola's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Coca Cola's market value can be influenced by many factors that don't directly affect Coca Cola's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Coca Cola's value and its price as these two are different measures arrived at by different means. Investors typically determine if Coca Cola is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Coca Cola's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.