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Tesla Motors Inc (NAS:TSLA)
Beneish M-Score
-1.96 (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 -1.96 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: -1.96

-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 * 1.3149+0.528 * 1.3024+0.404 * 1.2271+0.892 * 1.2091+0.115 * 0.9832
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.2684+4.679 * -0.0396-0.327 * 0.9108
=-1.96

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $318 Mil.
Revenue was 1147.048 + 1214.38 + 936.789 + 954.976 = $4,253 Mil.
Gross Profit was 252.468 + 218.564 + 231.496 + 213.37 = $916 Mil.
Total Current Assets was $3,240 Mil.
Total Assets was $9,192 Mil.
Property, Plant and Equipment(Net PPE) was $5,837 Mil.
Depreciation, Depletion and Amortization(DDA) was $502 Mil.
Selling, General & Admin. Expense(SGA) was $1,045 Mil.
Total Current Liabilities was $3,188 Mil.
Long-Term Debt was $2,484 Mil.
Net Income was -282.267 + -320.397 + -229.858 + -184.227 = $-1,017 Mil.
Non Operating Income was 9.177 + -17.149 + -15.431 + 13.233 = $-10 Mil.
Cash Flow from Operations was -249.605 + -29.849 + -203.34 + -159.516 = $-642 Mil.
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.



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)
=(318.056 / 4253.193) / (200.052 / 3517.694)
=0.07478052 / 0.05687021
=1.3149

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)
=(218.564 / 3517.694) / (252.468 / 4253.193)
=0.28047238 / 0.21534363
=1.3024

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 - (3239.543 + 5837.224) / 9191.702) / (1 - (2921.417 + 3136.252) / 6120.03)
=0.01250421 / 0.01018966
=1.2271

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
=4253.193 / 3517.694
=1.2091

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))
=(264.775 / (264.775 + 3136.252)) / (501.938 / (501.938 + 5837.224))
=0.07785148 / 0.0791805
=0.9832

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)
=(1045.077 / 4253.193) / (681.473 / 3517.694)
=0.24571587 / 0.1937272
=1.2684

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)
=((2484.329 + 3187.699) / 9191.702) / ((1954.214 + 2192.381) / 6120.03)
=0.61708136 / 0.67754488
=0.9108

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
=(-1016.749 - -10.17 - -642.31) / 9191.702
=-0.0396

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 -1.96 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

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.13841.84460.81261.39070.37552.90490.5894
GMI -0.90870.32360.87294.1450.32110.8221.2077
AQI 1.69651.47280.59690.57060.51110.75241.4013
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 0.16120.9151.58521.3160.61791.27720.8913
TATA 0.2034-0.0516-0.1926-0.1152-0.1467-0.0409-0.0399
M-score 3.22-1.99-3.19-0.31-0.66-0.73-2.53

Tesla Motors Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 0.37550.71530.46211.96742.90491.62820.94420.57660.58941.3149
GMI 0.32110.49470.62160.69820.8220.88620.96651.06531.20771.3024
AQI 0.51110.41120.54640.86730.75241.06041.25281.15391.40131.2271
SGI 4.87232.19311.84111.6761.58851.69751.521.3261.2651.2091
DEPI 0.5640.7260.80460.89281.05421.18721.28561.25731.09020.9832
SGAI 0.38980.97321.2251.31841.33081.12741.14611.23251.20771.2684
LVGI 0.61790.80091.16691.22821.27721.0351.03210.9070.89130.9108
TATA -0.1495-0.0904-0.0928-0.0685-0.0409-0.0202-0.0158-0.0092-0.0399-0.0396
M-score -0.68-2.57-3.16-1.66-0.73-1.42-2.06-2.51-2.53-1.96
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