Industrias Bachoco, S.A. de C.V.
Industrias Bachoco, S.A. de C.V. (IBA) Beneish M-score
Industrias Bachoco, S.A. de C.V.'s Beneish M-score for fiscal 2022 is −2.23; values above −1.78 are the model's flag for possible earnings manipulation — a statistical screen, not a finding.
Beneish M-score, annual
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Annual newest first
| Period | Beneish M-score | Change (points) |
|---|---|---|
| FY2022 | −2.23 | 0.22 |
| FY2021 | −2.45 | 0.13 |
| FY2020 | −2.58 | (0.23) |
| FY2019 | −2.35 | 0.13 |
| FY2018 | −2.48 | (0.11) |
| FY2017 | −2.37 | (0.33) |
| FY2016 | −2.04 | 0.67 |
| FY2015 | −2.71 | — |
How fiscal 2022’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Days’ sales in receivables index | 0.95 | — | 0.87 | |
| Gross margin index | 0.96 | — | 0.51 | |
| Asset quality index | 1.09 | — | 0.44 | |
| Sales growth index | 1.26 | — | 1.12 | |
| Depreciation index | 1.06 | — | 0.12 | |
| SG&A index | 0.98 | — | −0.17 | |
| Total accruals to total assets | 0.00 | — | 0.02 | |
| Leverage index | 0.94 | — | −0.31 | |
| Beneish M-score | Low — no pattern the model associates with manipulation | −2.23 | ||
How the Beneish M-score works
M = −4.84 + 0.920 × DSRI + 0.528 × GMI + 0.404 × AQI + 0.892 × SGI + 0.115 × DEPI − 0.172 × SGAI + 4.679 × TATA − 0.327 × LVGI (Beneish, 1999): eight changes in the accounts from one fiscal year to the next, which the model weighs for the pattern seen in companies that later restated their earnings. Higher is worse.
| below −2.22 | Low — no pattern the model associates with manipulation |
|---|---|
| −2.22 to −1.78 | Elevated |
| above −1.78 | Flagged by the model |
−1.78 is the cut-off usually quoted from the paper, −2.22 a common conservative one. A statistical screen, not a finding of wrongdoing.
When asset quality, depreciation or SG&A cannot be worked out, that index is set to 1, as Beneish did, and the breakdown says so; with all three missing there is no score. Depreciation includes amortisation, and asset quality leaves out securities. Not worked out for banks, insurers and REITs.
Beneish M-score against peers
| Company | Beneish M-score |
|---|---|
| AFRI Forafric Global PLC compare | −2.9× |
| DMC Del Monte Corporation compare | −2.7× |
| TSN Tyson Foods, Inc. compare | −2.6× |
| DOLE Dole PLC compare | −2.3× |
| IBA Industrias Bachoco, S.A. de C.V. | −2.2× |
| AGRO Adecoagro S.A. compare | −2.0× |
| LND Brasilagro Cia Brasileira De Propriedades Agricolas compare | −2.0× |
| CALM Cal-Maine Foods, Inc. compare | −1.6× |
| VITL Vital Farms, Inc. compare | −1.3× |
What Beneish M-score is
The Beneish M-Score combines eight year-on-year changes in the accounts into a statistical screen for patterns seen in companies that overstated earnings.
−4.84 + 0.920 × DSRI + 0.528 × GMI + 0.404 × AQI + 0.892 × SGI + 0.115 × DEPI − 0.172 × SGAI + 4.679 × TATA − 0.327 × LVGI