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Tesla Motors Inc (NAS:TSLA)
Piotroski F-Score
4 (As of Today)

The zones of discrimination were as such:

Good or high score = 8 or 9
Bad or low score = 0 or 1

Tesla Motors Inc has an F-score of 6 indicating the company's financial situation is typical for a stable company.

TSLA' s 10-Year Piotroski F-Score Range
Min: 2   Max: 8
Current: 4

2
8

During the past 7 years, the highest Piotroski F-Score of Tesla Motors Inc was 8. The lowest was 2. And the median was 4.


Definition

How is the Piotroski F-Score calculated?

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Mar14) TTM:Last Year (Mar13) TTM:
Net Income was -30.502 + -38.496 + -16.264 + -49.8 = $-135 Mil.
Cash Flow from Operations was -38.193 + 102.346 + 129.763 + 60.64 = $255 Mil.
Revenue was 405.139 + 431.346 + 615.219 + 620.542 = $2,072 Mil.
Gross Profit was 100.483 + 102.868 + 156.59 + 155.128 = $515 Mil.
Average Total Assets from the begining of this year (Mar13)
to the end of this year (Mar14) was
(1143.778 + 1887.844 + 2166.209 + 2416.93 + 4500.41) / 5 = $2,423 Mil.
Total Assets was $4,500 Mil.
Long-Term Debt was $2,131 Mil.
Total Current Assets was $3,156 Mil.
Total Current Liabilities was $1,026 Mil.
Net Income was -105.603 + -110.804 + -89.932 + 11.248 = $-295 Mil.

Revenue was 26.653 + 50.104 + 306.332 + 561.792 = $945 Mil.
Gross Profit was 4.762 + -8.761 + 23.857 + 96.32 = $116 Mil.
Average Total Assets from the begining of last year (Mar12)
to the end of last year (Mar13) was
(761.1 + 776.869 + 809.177 + 1114.19 + 1143.778) / 5 = $921 Mil.
Total Assets was $1,144 Mil.
Long-Term Debt was $456 Mil.
Total Current Assets was $526 Mil.
Total Current Liabilities was $485 Mil.

Profitability

Q1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by average total assets throughout the year.

Score 1 if positive, 0 if negative.

Tesla Motors Inc's current net income (ttm) was -135. ==> Negative ==> Score 0.

Q2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by average total assets throughout the year.

Score 1 if positive, 0 if negative.

Tesla Motors Inc's current cash flow from operations (ttm) was 255. ==> Positive ==> Score 1.

Q3. Change in Return on Assets

Compare this year’s return on assets (1) to last year’s return on assets.

Score 1 if it’s higher, 0 if it’s lower.

ROA (This Year)=Net Income (TTM)/Average Total Assets from Mar13 to Mar14
=-135.062/2423.0342
=-0.05574086

ROA (Last Year)=Net Income (TTM)/Average Total Assets from Mar12 to Mar13
=-295.091/921.0228
=-0.32039489

Tesla Motors Inc's return on assets of this year was -0.05574086. Tesla Motors Inc's return on assets of last year was -0.32039489. ==> This year is higher. ==> Score 1.

Q4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA =< ROA.

Tesla Motors Inc's current net income (ttm) was -135. Tesla Motors Inc's current cash flow from operations (ttm) was 255. ==> 255 > -135 ==> CFROA > ROA ==> Score 1.

Funding

Q5. Change in Gearing or Leverage

Compare this year’s gearing (long-term debt divided by total assets) to last year’s gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Mar14)=Long-Term Debt/Total Assets
=2130.812/4500.41
=0.47347064

Gearing (Last Year: Mar13)=Long-Term Debt/Total Assets
=455.538/1143.778
=0.39827484

Tesla Motors Inc's gearing of this year was 0.47347064. Tesla Motors Inc's gearing of last year was 0.39827484. ==> Last year is lower than this year ==> Score 0.

Q6. Change in Working Capital (Liquidity)

Compare this year’s current ratio (current assets divided by current liabilities) to last year’s current ratio.

Score 1 if this year'’s current ratio is higher, 0 if it’s lower

Current Ratio (This Year: Mar14)=Total Current Assets/Total Current Liabilities
=3156.047/1026.015
=3.07602423

Current Ratio (Last Year: Mar13)=Total Current Assets/Total Current Liabilities
=525.993/484.653
=1.08529814

Tesla Motors Inc's current ratio of this year was 3.07602423. Tesla Motors Inc's current ratio of last year was 1.08529814. ==> This year's current ratio is higher. ==> Score 1.

Q7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Tesla Motors Inc's number of shares in issue this year was 123.5. Tesla Motors Inc's number of shares in issue last year was 124.3. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Q8. Change in Gross Margin

Compare this year’s gross margin (gross profit divided by sales) to last year’s.

Score 1 if this year’s gross margin is higher, 0 if it’s lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=515.069/2072.246
=0.24855591

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=116.178/944.881
=0.12295517

Tesla Motors Inc's gross margin of this year was 0.24855591. Tesla Motors Inc's gross margin of last year was 0.12295517. ==> This year's gross margin is higher. ==> Score 1.

Q9. Change in asset turnover

Compare this year’s asset turnover (total sales for the year divided by average total assets throughout the year) to last year’s asset turnover ratio.

Score 1 if this year’s asset turnover ratio is higher, 0 if it’s lower

Asset Turnover (This Year)=Revenue (TTM)/Average Total Assets from Mar13 to Mar14
=2072.246/2423.0342
=0.85522771

Asset Turnover (Last Year)=Revenue (TTM)/Average Total Assets from Mar12 to Mar13
=944.881/921.0228
=1.02590403

Tesla Motors Inc's asset turnover of this year was 0.85522771. Tesla Motors Inc's asset turnover of last year was 1.02590403. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score=Q1+Q2+Q3+Q4+Q5+Q6+Q7+Q8+Q9
=0+1+1+1+0+1+1+1+0
=6

Good or high score = 8 or 9

Bad or low score = 0 or 1

Tesla Motors Inc has an F-score of 6 indicating the company's financial situation is typical for a stable company.


Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Related Terms

Net Income, Cash Flow from Operations, Revenue, Gross Profit, Total Assets, Long-Term Debt, Total Current Assets, Total Current Liabilities, Altman Z-Score, Beneish M-Score


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Tesla Motors Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Q1 000
Q2 001
Q3 1
Q4 1
Q5 1
Q6 1
Q7 0
Q8 1
Q9 1
F-score 7

Tesla Motors Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
Q1 0000000000
Q2 0000001111
Q3 1100111111
Q4 1111111111
Q5 0000111100
Q6 0000011111
Q7 0000000010
Q8 0000001111
Q9 0001111100
F-score 2213457774
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