Switch to:
Tesla Motors Inc (NAS:TSLA)
Beneish M-Score
-2.53 (As of Today)

The zones of discrimination for M-Score is as such:

An M-Score of less than -2.22 suggests that the company is not an accounting manipulator.
An M-Score of greater than -2.22 signals that the company is likely an accounting manipulator.

Tesla Motors Inc has a M-score of -2.53 suggests that the company is not a manipulator.

TSLA' s Beneish M-Score Range Over the Past 10 Years
Min: -3.1   Max: -0.32
Current: -2.53

-3.1
-0.32

During the past 9 years, the highest Beneish M-Score of Tesla Motors Inc was -0.32. The lowest was -3.10. And the median was -1.36.


Definition

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Z-Score) or business trend (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 Tesla Motors Inc 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 * 0.5894+0.528 * 1.2077+0.404 * 1.4013+0.892 * 1.265+0.115 * 1.0902
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.2077+4.679 * -0.0399-0.327 * 0.8913
=-2.53

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

This Year (Dec15) TTM:Last Year (Dec14) TTM:
Accounts Receivable was $169 Mil.
Revenue was 1214.38 + 936.789 + 954.976 + 939.88 = $4,046 Mil.
Gross Profit was 218.564 + 231.496 + 213.37 + 260.073 = $924 Mil.
Total Current Assets was $2,792 Mil.
Total Assets was $8,092 Mil.
Property, Plant and Equipment(Net PPE) was $5,195 Mil.
Depreciation, Depletion and Amortization(DDA) was $423 Mil.
Selling, General & Admin. Expense(SGA) was $922 Mil.
Total Current Liabilities was $2,816 Mil.
Long-Term Debt was $2,040 Mil.
Net Income was -320.397 + -229.858 + -184.227 + -154.181 = $-889 Mil.
Non Operating Income was -17.149 + -15.431 + 13.233 + -22.305 = $-42 Mil.
Cash Flow from Operations was -29.849 + -203.34 + -159.516 + -131.794 = $-524 Mil.
Accounts Receivable was $227 Mil.
Revenue was 956.661 + 851.804 + 769.349 + 620.542 = $3,198 Mil.
Gross Profit was 261.697 + 251.851 + 212.995 + 155.128 = $882 Mil.
Total Current Assets was $3,180 Mil.
Total Assets was $5,831 Mil.
Property, Plant and Equipment(Net PPE) was $2,596 Mil.
Depreciation, Depletion and Amortization(DDA) was $232 Mil.
Selling, General & Admin. Expense(SGA) was $604 Mil.
Total Current Liabilities was $2,107 Mil.
Long-Term Debt was $1,819 Mil.



1. DSRI = Days Sales in Receivables Index

Measured as the ratio of days’ sales in 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)
=(168.965 / 4046.025) / (226.604 / 3198.356)
=0.04176074 / 0.07085015
=0.5894

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)
=(231.496 / 3198.356) / (218.564 / 4046.025)
=0.27566381 / 0.22824945
=1.2077

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 plant, property and equipment to total assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (2791.568 + 5194.737) / 8092.46) / (1 - (3180.073 + 2596.011) / 5830.667)
=0.01311777 / 0.00936136
=1.4013

4. SGI = Sales Growth Index

Ratio of sales 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
=4046.025 / 3198.356
=1.265

5. DEPI = Depreciation Index

Measured as the ratio of the rate of depreciation 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))
=(231.931 / (231.931 + 2596.011)) / (422.59 / (422.59 + 5194.737))
=0.08201406 / 0.07522973
=1.0902

6. SGAI = Sales, General and Administrative expenses Index

The ratio of SGA expenses 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)
=(922.232 / 4046.025) / (603.659 / 3198.356)
=0.22793532 / 0.1887404
=1.2077

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$sgai= in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((2040.375 + 2816.274) / 8092.46) / ((1818.785 + 2107.166) / 5830.667)
=0.60014495 / 0.67332794
=0.8913

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
=(-888.663 - -41.652 - -524.499) / 8092.46
=-0.0399

An M-Score of less than -2.22 suggests that the company will not be a manipulator. An M-Score of greater than -2.22 signals that the company is likely to be a manipulator.

Tesla Motors Inc has a M-score of -2.53 suggests that the company will not be a manipulator.


Related Terms

Altman Z-Score, Piotroski F-Score, Accounts Receivable, Revenue, Gross Profit, Total Current Assets, Total Assets, Property, Plant and Equipment, Depreciation, Depletion and Amortization, Selling, General & Admin. Expense, Total Current Liabilities, Long-Term Debt, Net Income, Non Operating Income, Cash Flow from Operations


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

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.13841.84460.81261.39070.37552.90490.5894
GMI -0.90870.32360.87294.1450.32110.8221.2077
AQI 1.69651.47280.59690.57060.51110.75241.4013
SGI 7.59351.04291.74952.02344.87231.58851.265
DEPI 0.79542.85591.54161.06080.5641.05421.0902
SGAI 0.23471.9240.70360.71390.38981.33081.2077
LVGI 0.16120.9151.58521.3160.61791.27720.8913
TATA 0.2034-0.0516-0.1926-0.1152-0.1467-0.0409-0.0399
M-score 3.22-1.99-3.19-0.31-0.66-0.73-2.53

Tesla Motors Inc Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 0.44560.37550.71530.46211.96742.90491.62820.94420.57660.5894
GMI 0.50590.32110.49470.62160.69820.8220.88620.96651.06531.2077
AQI 0.3390.51110.41120.54640.86730.75241.06041.25281.15391.4013
SGI 11.65154.87232.19311.84111.6761.58851.69751.521.3261.265
DEPI 0.49630.5640.7260.80460.89281.05421.18721.28561.25731.0902
SGAI 0.14950.38980.97321.2251.31841.33081.12741.14611.23251.2077
LVGI 0.54690.61790.80091.16691.22821.27721.0351.03210.9070.8913
TATA -0.121-0.1495-0.0904-0.0928-0.0685-0.0409-0.0202-0.0158-0.0092-0.0399
M-score 5.65-0.68-2.57-3.16-1.66-0.73-1.42-2.06-2.51-2.53
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GuruFocus Premium Plus Membership

FEEDBACK