Subject:

MercadoLibre’s Divergence/Convergence of Growths,

Profitability Strength

.

MELI

Fin 2026.Mar.TTM

.

Gaap

.

EPS

= 1.92÷0.05070

= USD 37.8698224852

.

D/E

= (10.09+6.75)÷7.28

= 2.3131868132

.

Clean Invested Capital Cost (CICC) Factor (Consolidated)

= Inflation Factor × (1 + D/E × (1 + 2 × Bond Ratio)) ÷ (1 + D/E)

= 1.1034949349×(1+2.3131868132×(1+2×0.1182089436))÷(1+2.3131868132)

= 1.2856391823

.

CICC Rate

= 28.56391823 %

.

Total Liabilities/Total Equity

= 39.65÷7.28

= 5.4464285714

.

Clean Total Assets Cost (CTAC) Factor (Consolidated)

= Inflation Factor × (1 + Total Liabilities/Total Equity × (1 + 2 × Bond Ratio)) ÷ (1 + Total Liabilities/Total Equity)

=

=

1.1034949349×(1+5.4464285714×(1+2×0.1182089436))÷(1+5.4464285714)

= 1.3239110347

.

CTAC Rate

= 32.39110347 %

.

ROA

= 100×1.92÷46.93

= 4.0911996591

.

NetROIC

= 100×1.92÷(7.28+10.09+6.75)

= 7.960199005

.

Gnet_income Factor

= (417+559+421+523)÷(494+639+397+531)

= 0.9315866084

< 1, Value Destructive

.

Gtotal_equity Factor

= 7.28÷5.00

= 1.456

.

Gtotal_liabilities Factor

= 39.65÷22.68

= 1.7482363316

.

Ginvested_capital Factor

= (7.28+10.09+6.75)÷(5.00+5.97+3.94)

= 1.6177062374

.

Gtotal_assets Factor

= 46.93÷27.68

= 1.6954479769

.

(A)

Divergence/Convergence of Gnet_income

= (1 + Gnet_income Ratio) ÷ (1 + Clean Invested Capital Cost (CICC) Ratio)

= 0.9315866084 ÷ 1.2856391823

= 0.7246096893

<1, Gnet_income is convergent, therefore Gnet_income is destructive

.

(B)

Divergence/Convergence of Gtotal_assets

= (1 + Gtotal_assets Ratio) ÷ (1 + Clean Total Assets Cost (CTAC))

= 1.6954479769 ÷ 1.3239110347

= 1.280635883

> 1, Gtotal_assets is Divergent, therefore Gtotal_assets is constructive

.

(C)

Divergence/Convergence of Ginvested_capital

= (1 + Ginvested_capital Ratio) ÷ (1 + Clean Invested Capital Cost (CICC) Ratio)

= 1.6177062374 ÷ 1.2856391823

= 1.2582894638

> 1, Ginvested_capital is Divergent, therefore Ginvested_capital is constructive

.

(D)

Divergence/Convergence of Gtotal_equity

= (1 + Gtotal_equity Ratio) ÷ (1 + Inflation or Bond Ratio)

= 1.456÷1.1182089436

= 1.3020822346

> 1, Gtotal_equity is Divergent, therefore Gtotal_equity is constructive

.

(E)

Total_equity Quality

= (1 + Gtotal_equity Ratio) ÷ (1 + Gtotal_liabilities Ratio)

= 1.456 ÷ 1.7482363316

= 0.8328393442

< 1, Bad Quality

.

(F)

Gnetroic Factor

= (1 + Gnet_income Ratio) ÷ (1 + Ginvested_capital Ratio)

= 0.9315866084 ÷ 1.6177062374

= 0.5758688363

< 1, NetROIC is not sustaining and is sliding.

.

(G)

NetROIC Competive Moat Indicator

= NetROIC ÷ CICC

= 7.960199005 ÷ 28.56391823

= 0.2786802196 (Very Ugly)

.

(H)

ROA Competive Moat Indicator

= ROA ÷ CTAC

= 4.0911996591 ÷ 32.39110347

= 0.1263062761 (Very Ugly)

.

(I)

Gintrinsic_value Factor

= (1 + Gnet_income Ratio)² ÷ (1 + Ginvested_capital Ratio)

= 0.9315866084^2÷1.6177062374

= 0.5364716961

< 1, Intrinsic Value Destructive

.