Switch to:
Tesla Motors Inc (NAS:TSLA)
Beneish M-Score
-1.42 (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 -1.42 signals that the company is a manipulator.

TSLA' s 10-Year Beneish M-Score Range
Min: -4.22   Max: 5.66
Current: -1.42

-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 -1.66.


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 * 1.6282+0.528 * 0.8862+0.404 * 1.0604+0.892 * 1.6975+0.115 * 1.1872
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1274+4.679 * -0.0202-0.327 * 1.035
=-1.42

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
Accounts Receivable was $200 Mil.
Revenue was 939.88 + 956.661 + 851.804 + 769.349 = $3,518 Mil.
Gross Profit was 260.073 + 261.697 + 251.851 + 212.995 = $987 Mil.
Total Current Assets was $2,921 Mil.
Total Assets was $6,120 Mil.
Property, Plant and Equipment(Net PPE) was $3,136 Mil.
Depreciation, Depletion and Amortization(DDA) was $265 Mil.
Selling, General & Admin. Expense(SGA) was $681 Mil.
Total Current Liabilities was $2,192 Mil.
Long-Term Debt was $1,954 Mil.
Net Income was -154.181 + -107.629 + -74.708 + -61.9 = $-398 Mil.
Non Operating Income was -22.305 + -0.588 + -3.09 + -1.226 = $-27 Mil.
Cash Flow from Operations was -131.794 + -86.402 + -27.996 + -1.662 = $-248 Mil.
Accounts Receivable was $72 Mil.
Revenue was 620.542 + 615.219 + 431.346 + 405.139 = $2,072 Mil.
Gross Profit was 155.128 + 156.589 + 102.868 + 100.483 = $515 Mil.
Total Current Assets was $3,156 Mil.
Total Assets was $4,500 Mil.
Property, Plant and Equipment(Net PPE) was $1,301 Mil.
Depreciation, Depletion and Amortization(DDA) was $133 Mil.
Selling, General & Admin. Expense(SGA) was $356 Mil.
Total Current Liabilities was $1,413 Mil.
Long-Term Debt was $1,533 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)
=(200.052 / 3517.694) / (72.38 / 2072.246)
=0.05687021 / 0.03492829
=1.6282

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)
=(261.697 / 2072.246) / (260.073 / 3517.694)
=0.24855543 / 0.28047238
=0.8862

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 - (2921.417 + 3136.252) / 6120.03) / (1 - (3156.047 + 1301.118) / 4500.41)
=0.01018966 / 0.00960912
=1.0604

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
=3517.694 / 2072.246
=1.6975

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))
=(132.501 / (132.501 + 1301.118)) / (264.775 / (264.775 + 3136.252))
=0.09242414 / 0.07785148
=1.1872

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)
=(681.473 / 3517.694) / (356.074 / 2072.246)
=0.1937272 / 0.17182999
=1.1274

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)
=((1954.214 + 2192.381) / 6120.03) / ((1532.539 + 1413.47) / 4500.41)
=0.67754488 / 0.65460902
=1.035

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
=(-398.418 - -27.209 - -247.854) / 6120.03
=-0.0202

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 -1.42 signals that the company is likely to 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 0.81261.39070.37552.9049
GMI 0.87294.1450.32110.822
AQI 0.64210.41160.51110.75
SGI 1.74952.02344.87231.5885
DEPI 1.58061.10030.5641.0542
SGAI 0.70360.71390.38981.3308
LVGI 1.58521.3160.61791.2921
TATA -0.1734-0.1152-0.1495-0.0408
M-score -3.08-0.37-0.68-0.73

Tesla Motors Inc Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 1.39070.66611.19760.44560.37550.71530.46211.96742.90491.6282
GMI 4.14492.35931.62490.50590.32110.49470.62160.69820.8220.8862
AQI 0.41160.91490.33950.3390.51110.30710.54640.86730.751.0604
SGI 2.02345.0978.601111.65154.87232.19311.84111.6761.58851.6975
DEPI 1.10030.65530.52230.49630.5640.73650.80460.89281.05421.1872
SGAI 0.71390.29630.1820.14950.38980.97321.2251.31841.33081.1274
LVGI 1.3161.0730.64330.54690.61790.80091.16691.22821.29211.035
TATA -0.1152-0.151-0.0676-0.1199-0.1495-0.0904-0.0928-0.0685-0.0408-0.0202
M-score -0.370.904.435.66-0.68-2.61-3.16-1.66-0.73-1.42
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