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

Warning Sign:

Beneish M-Score 5.63 higher than -2.22, which implies that it might have manipulated its financial results.

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 5.63 signals that the company is a manipulator.

TSLA' s 10-Year Beneish M-Score Range
Min: -4.22   Max: 5.66
Current: 5.63

-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 -1.54.


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 * 0.9442+0.528 * 0.9665+0.404 * 20.3994+0.892 * 1.52+0.115 * 0.9315
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1461+4.679 * -0.0158-0.327 * 1.0321
=5.63

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

This Year (Jun15) TTM:Last Year (Jun14) TTM:
Accounts Receivable was $139 Mil.
Revenue was 954.976 + 939.88 + 956.661 + 851.804 = $3,703 Mil.
Gross Profit was 213.37 + 260.073 + 261.697 + 251.851 = $987 Mil.
Total Current Assets was $2,629 Mil.
Total Assets was $6,468 Mil.
Property, Plant and Equipment(Net PPE) was $2,646 Mil.
Depreciation, Depletion and Amortization(DDA) was $301 Mil.
Selling, General & Admin. Expense(SGA) was $749 Mil.
Total Current Liabilities was $2,384 Mil.
Long-Term Debt was $2,050 Mil.
Net Income was -184.227 + -154.181 + -107.629 + -74.708 = $-521 Mil.
Non Operating Income was 13.233 + -22.305 + -0.588 + -3.09 = $-13 Mil.
Cash Flow from Operations was -159.516 + -131.794 + -86.402 + -27.996 = $-406 Mil.
Accounts Receivable was $97 Mil.
Revenue was 769.349 + 620.542 + 615.219 + 431.346 = $2,436 Mil.
Gross Profit was 212.995 + 155.128 + 156.589 + 102.868 = $628 Mil.
Total Current Assets was $3,442 Mil.
Total Assets was $5,054 Mil.
Property, Plant and Equipment(Net PPE) was $1,567 Mil.
Depreciation, Depletion and Amortization(DDA) was $165 Mil.
Selling, General & Admin. Expense(SGA) was $430 Mil.
Total Current Liabilities was $1,576 Mil.
Long-Term Debt was $1,781 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)
=(138.648 / 3703.321) / (96.607 / 2436.456)
=0.03743883 / 0.03965062
=0.9442

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)
=(260.073 / 2436.456) / (213.37 / 3703.321)
=0.25757904 / 0.26651511
=0.9665

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 - (2628.621 + 2646.017) / 6468.185) / (1 - (3441.694 + 1567.048) / 5054.463)
=0.1845258 / 0.00904567
=20.3994

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
=3703.321 / 2436.456
=1.52

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))
=(165.018 / (165.018 + 1567.048)) / (301.449 / (301.449 + 2646.017))
=0.09527235 / 0.10227395
=0.9315

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)
=(749.288 / 3703.321) / (430.142 / 2436.456)
=0.20232867 / 0.17654413
=1.1461

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)
=((2049.616 + 2384.388) / 6468.185) / ((1781.123 + 1575.85) / 5054.463)
=0.68550977 / 0.66416017
=1.0321

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
=(-520.745 - -12.75 - -405.708) / 6468.185
=-0.0158

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 5.63 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

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 0.66611.19760.44560.37550.71530.46211.96742.90491.62820.9442
GMI 2.35931.62490.50590.32110.49470.62160.69820.8220.88620.9665
AQI 0.91490.33950.3390.51110.30710.54640.86730.751.060420.3994
SGI 5.0978.601111.65154.87232.19311.84111.6761.58851.69751.52
DEPI 0.65530.52230.49630.5640.73650.80460.89281.05421.18720.9315
SGAI 0.29630.1820.14950.38980.97321.2251.31841.33081.12741.1461
LVGI 1.0730.64330.54690.61790.80091.16691.22821.29211.0351.0321
TATA -0.151-0.0676-0.1199-0.1495-0.0904-0.0928-0.0685-0.0408-0.0202-0.0158
M-score 0.904.435.66-0.68-2.61-3.16-1.66-0.73-1.425.63
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