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Tesla Motors Inc (NAS:TSLA)
Beneish M-Score
-2.51 (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 -2.44 suggests that the company is not a manipulator.

TSLA' s Beneish M-Score Range Over the Past 10 Years
Min: -4.22   Max: 5.66
Current: -2.51

-4.22
5.66

During the past 8 years, the highest Beneish M-Score of Tesla Motors Inc was 5.66. The lowest was -4.22. And the median was -1.75.


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 * 0.6053+0.528 * 1.1109+0.404 * 1.1539+0.892 * 1.2632+0.115 * 1.2573
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.2333+4.679 * 0.0049-0.327 * 0.907
=-2.44

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $120 Mil.
Revenue was 936.789 + 954.976 + 939.88 + 0 = $2,832 Mil.
Gross Profit was 231.496 + 213.37 + 260.073 + 0 = $705 Mil.
Total Current Assets was $2,999 Mil.
Total Assets was $7,547 Mil.
Property, Plant and Equipment(Net PPE) was $4,465 Mil.
Depreciation, Depletion and Amortization(DDA) was $347 Mil.
Selling, General & Admin. Expense(SGA) was $634 Mil.
Total Current Liabilities was $2,554 Mil.
Long-Term Debt was $2,028 Mil.
Net Income was -229.858 + -184.227 + -154.181 + 0 = $-568 Mil.
Non Operating Income was -15.431 + 13.233 + -22.305 + 0 = $-25 Mil.
Cash Flow from Operations was -203.34 + -159.516 + -131.794 + -86.402 = $-581 Mil.
Accounts Receivable was $157 Mil.
Revenue was 851.804 + 769.349 + 620.542 + 0 = $2,242 Mil.
Gross Profit was 251.851 + 212.995 + 155.128 + 0 = $620 Mil.
Total Current Assets was $3,363 Mil.
Total Assets was $5,438 Mil.
Property, Plant and Equipment(Net PPE) was $2,022 Mil.
Depreciation, Depletion and Amortization(DDA) was $202 Mil.
Selling, General & Admin. Expense(SGA) was $407 Mil.
Total Current Liabilities was $1,840 Mil.
Long-Term Debt was $1,799 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)
=(119.964 / 2831.645) / (156.889 / 2241.695)
=0.04236548 / 0.06998677
=0.6053

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)
=(213.37 / 2241.695) / (231.496 / 2831.645)
=0.27656483 / 0.24895035
=1.1109

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 - (2998.795 + 4464.536) / 7547.497) / (1 - (3362.914 + 2022.069) / 5437.533)
=0.01115151 / 0.00966431
=1.1539

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
=2831.645 / 2241.695
=1.2632

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))
=(201.54 / (201.54 + 2022.069)) / (346.843 / (346.843 + 4464.536))
=0.09063644 / 0.07208806
=1.2573

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)
=(633.578 / 2831.645) / (406.689 / 2241.695)
=0.22374909 / 0.18142031
=1.2333

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)
=((2027.575 + 2553.771) / 7547.497) / ((1799.441 + 1839.777) / 5437.533)
=0.60700203 / 0.66927741
=0.907

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
=(-568.266 - -24.503 - -581.052) / 7547.497
=0.0049

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 -2.44 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

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 0.13841.84460.81261.39070.37552.9049
GMI -0.90870.32360.87294.1450.32110.822
AQI 1.69651.89770.64210.41160.51110.75
SGI 7.59351.04291.74952.02344.87231.5885
DEPI 0.79542.68521.58061.10030.5641.0542
SGAI 0.23471.9240.70360.71390.38981.3308
LVGI 0.16120.9151.58521.3160.61791.2921
TATA 0.2034-0.0516-0.1734-0.1152-0.1495-0.0408
M-score 3.22-1.84-3.08-0.37-0.68-0.73

Tesla Motors Inc Quarterly Data

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
DSRI 1.15950.3970.13990.68750.47512.05682.87821.57240.95160.6053
GMI 1.5210.2710.2710.58760.71490.77490.77490.86920.97931.1109
AQI 0.33950.3390.51110.30710.54640.86730.751.060420.39941.1539
SGI 8.883513.077313.07732.28181.79071.60321.60321.75771.50811.2632
DEPI 0.52230.49630.5640.73650.80460.89281.05421.18720.93151.2573
SGAI 0.17290.13470.13470.92271.26741.37811.37811.08271.11431.2333
LVGI 0.64330.54690.61790.80091.16691.22821.29211.0351.03210.907
TATA -0.0195-0.0781-0.1409-0.0857-0.0886-0.0647-0.0225-0.00270.00070.0049
M-score 4.826.966.48-2.47-3.13-1.60-0.69-1.345.72-2.44
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