Switch to:
GuruFocus has detected 8 Warning Signs with Tesla Inc $TSLA.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
Tesla Inc (NAS:TSLA)
Beneish M-Score
0.53 (As of Today)

Warning Sign:

Beneish M-Score 0.53 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 Inc has a M-score of 0.53 signals that the company is a manipulator.

TSLA' s Beneish M-Score Range Over the Past 10 Years
Min: -3.1   Max: 0.53
Current: 0.53

-3.1
0.53

During the past 10 years, the highest Beneish M-Score of Tesla Inc was 0.53. The lowest was -3.10. And the median was -0.74.


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 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 * 1.7075+0.528 * 0.9991+0.404 * 5.3374+0.892 * 1.7301+0.115 * 1.2696
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8976+4.679 * -0.0292-0.327 * 0.8613
=0.53

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

This Year (Dec16) TTM:Last Year (Dec15) TTM:
Accounts Receivable was $499 Mil.
Revenue was 2284.631 + 2298.436 + 1270.017 + 1147.048 = $7,000 Mil.
Gross Profit was 435.278 + 636.735 + 274.776 + 252.468 = $1,599 Mil.
Total Current Assets was $6,260 Mil.
Total Assets was $22,664 Mil.
Property, Plant and Equipment(Net PPE) was $15,037 Mil.
Depreciation, Depletion and Amortization(DDA) was $947 Mil.
Selling, General & Admin. Expense(SGA) was $1,432 Mil.
Total Current Liabilities was $5,827 Mil.
Long-Term Debt was $5,978 Mil.
Net Income was -121.337 + 21.878 + -293.188 + -282.267 = $-675 Mil.
Non Operating Income was 121.224 + -11.756 + -7.373 + 9.177 = $111 Mil.
Cash Flow from Operations was -448.209 + 423.649 + 150.336 + -249.605 = $-124 Mil.
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 $2,782 Mil.
Total Assets was $8,068 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 $2,811 Mil.
Long-Term Debt was $2,068 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)
=(499.142 / 7000.132) / (168.965 / 4046.025)
=0.07130466 / 0.04176074
=1.7075

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)
=(923.503 / 4046.025) / (1599.257 / 7000.132)
=0.22824945 / 0.22846098
=0.9991

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 - (6259.796 + 15036.917) / 22664.076) / (1 - (2782.006 + 5194.737) / 8067.939)
=0.06033173 / 0.01130351
=5.3374

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
=7000.132 / 4046.025
=1.7301

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))
=(422.59 / (422.59 + 5194.737)) / (947.099 / (947.099 + 15036.917))
=0.07522973 / 0.05925288
=1.2696

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)
=(1432.189 / 7000.132) / (922.232 / 4046.025)
=0.20459457 / 0.22793532
=0.8976

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)
=((5978.284 + 5827.005) / 22664.076) / ((2068.378 + 2811.035) / 8067.939)
=0.52088111 / 0.60479052
=0.8613

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
=(-674.914 - 111.272 - -123.829) / 22664.076
=-0.0292

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 Inc has a M-score of 0.53 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 Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
DSRI 0.13841.84460.81261.39070.37552.90490.58941.7075
GMI -0.90870.32360.87294.1450.32110.8221.20770.9991
AQI 1.69651.47280.59690.57060.51110.75241.20755.3374
SGI 7.59351.04291.74952.02344.87231.58851.2651.7301
DEPI 0.79542.85591.54161.06080.5641.05421.09021.2696
SGAI 0.23471.9240.70360.71390.38981.33081.20770.8976
LVGI 0.16120.9151.58521.3160.61791.29620.88510.8613
TATA 0.2034-0.0516-0.1734-0.1172-0.1495-0.0409-0.04-0.0292
M-score 3.22-1.99-3.10-0.32-0.68-0.74-2.600.53

Tesla Inc Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
DSRI 1.96742.90491.62820.94420.57660.58941.31491.04421.74081.7075
GMI 0.69820.8220.88620.96651.06531.20771.30241.24581.09440.9991
AQI 0.86730.75241.06041.25281.15391.20751.22711.0281.15115.3374
SGI 1.6761.58851.69751.521.3261.2651.20911.23361.56531.7301
DEPI 0.89281.05421.18721.28561.25731.09020.98320.88870.75711.2696
SGAI 1.31841.33081.12741.14611.23251.20771.26841.25980.97290.8976
LVGI 1.22821.29621.0351.03210.9070.88510.91080.78490.85380.8613
TATA -0.0685-0.0409-0.0202-0.0158-0.0092-0.04-0.0396-0.0642-0.0906-0.0292
M-score -1.66-0.74-1.42-2.06-2.51-2.60-1.96-2.38-1.580.53
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)
FEEDBACK