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Tesla Motors Inc (NAS:TSLA)
Beneish M-Score
-1.58 (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 -1.58 signals that the company is a manipulator.

TSLA' s Beneish M-Score Range Over the Past 10 Years
Min: -4.24   Max: 5.65
Current: -1.58

-4.24
5.65

During the past 9 years, the highest Beneish M-Score of Tesla Motors Inc was 5.65. The lowest was -4.24. And the median was -2.03.


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 * 1.7408+0.528 * 1.0944+0.404 * 1.1511+0.892 * 1.5653+0.115 * 0.7571
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9729+4.679 * -0.0906-0.327 * 0.8538
=-1.58

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $327 Mil.
Revenue was 2298.436 + 1270.017 + 1147.048 + 1214.38 = $5,930 Mil.
Gross Profit was 636.735 + 274.776 + 252.468 + 218.564 = $1,383 Mil.
Total Current Assets was $5,172 Mil.
Total Assets was $12,592 Mil.
Property, Plant and Equipment(Net PPE) was $7,258 Mil.
Depreciation, Depletion and Amortization(DDA) was $764 Mil.
Selling, General & Admin. Expense(SGA) was $1,265 Mil.
Total Current Liabilities was $4,082 Mil.
Long-Term Debt was $2,443 Mil.
Net Income was 21.878 + -293.188 + -282.267 + -320.397 = $-874 Mil.
Non Operating Income was -11.756 + -7.373 + 9.177 + -17.149 = $-27 Mil.
Cash Flow from Operations was 423.649 + 150.336 + -249.605 + -29.849 = $295 Mil.
Accounts Receivable was $120 Mil.
Revenue was 936.789 + 954.976 + 939.88 + 956.661 = $3,788 Mil.
Gross Profit was 231.496 + 213.37 + 260.073 + 261.697 = $967 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 $831 Mil.
Total Current Liabilities was $2,554 Mil.
Long-Term Debt was $2,028 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)
=(326.895 / 5929.881) / (119.964 / 3788.306)
=0.05512674 / 0.03166692
=1.7408

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)
=(966.636 / 3788.306) / (1382.543 / 5929.881)
=0.25516313 / 0.23314852
=1.0944

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 - (5172.412 + 7258.345) / 12592.397) / (1 - (2998.795 + 4464.536) / 7547.497)
=0.01283632 / 0.01115151
=1.1511

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
=5929.881 / 3788.306
=1.5653

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))
=(346.843 / (346.843 + 4464.536)) / (763.883 / (763.883 + 7258.345))
=0.07208806 / 0.0952208
=0.7571

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)
=(1264.827 / 5929.881) / (830.548 / 3788.306)
=0.2132972 / 0.21923995
=0.9729

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)
=((2443.42 + 4082.39) / 12592.397) / ((2027.575 + 2553.771) / 7547.497)
=0.51823414 / 0.60700203
=0.8538

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
=(-873.974 - -27.101 - 294.531) / 12592.397
=-0.0906

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 -1.58 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 local exchange's 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 1.69651.47280.59690.57060.51110.75241.2075
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 0.16120.9151.58521.3160.61791.27720.8895
TATA 0.2034-0.0516-0.1734-0.1172-0.1495-0.0409-0.04
M-score 3.22-1.99-3.10-0.32-0.68-0.73-2.60

Tesla Motors Inc Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 0.46211.96742.90491.62820.94420.57660.58941.31491.04421.7408
GMI 0.62160.69820.8220.88620.96651.06531.20771.30241.24581.0944
AQI 0.54640.86730.75241.06041.25281.15391.20751.22711.0281.1511
SGI 1.84111.6761.58851.69751.521.3261.2651.20911.23361.5653
DEPI 0.80460.89281.05421.18721.28561.25731.09020.98320.88870.7571
SGAI 1.2251.31841.33081.12741.14611.23251.20771.26841.25980.9729
LVGI 1.16691.22821.27721.0351.03210.9070.88950.91080.78490.8538
TATA -0.0928-0.0685-0.0409-0.0202-0.0158-0.0092-0.04-0.0396-0.0642-0.0906
M-score -3.16-1.66-0.73-1.42-2.06-2.51-2.60-1.96-2.38-1.58
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