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Tesla (LIM:TSLA) Beneish M-Score : -1.63 (As of Jun. 15, 2024)


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What is Tesla Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Warning Sign:

Beneish M-Score -1.63 higher than -1.78, which implies that the company might have manipulated its financial results.

The historical rank and industry rank for Tesla's Beneish M-Score or its related term are showing as below:

LIM:TSLA' s Beneish M-Score Range Over the Past 10 Years
Min: -3.17   Med: -2.24   Max: 0.34
Current: -1.63

During the past 13 years, the highest Beneish M-Score of Tesla was 0.34. The lowest was -3.17. And the median was -2.24.


Tesla Beneish M-Score Historical Data

The historical data trend for Tesla's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Tesla Beneish M-Score Chart

Tesla Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.47 -2.71 -2.47 -2.04 -1.63

Tesla Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.12 -1.75 -2.05 -1.63 -1.63

Competitive Comparison of Tesla's Beneish M-Score

For the Auto Manufacturers subindustry, Tesla's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Tesla's Beneish M-Score Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Tesla's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Tesla's Beneish M-Score falls into.



Tesla Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski 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 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 * 1.1793+0.528 * 1.3012+0.404 * 1.8437+0.892 * 1.1012+0.115 * 0.9737
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1487+4.679 * 0.021076-0.327 * 0.9254
=-1.63

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Mar24) TTM:Last Year (Mar23) TTM:
Total Receivables was $3,887 Mil.
Revenue was 21301 + 25167 + 23350 + 24927 = $94,745 Mil.
Gross Profit was 3696 + 4438 + 4178 + 4533 = $16,845 Mil.
Total Current Assets was $50,535 Mil.
Total Assets was $109,226 Mil.
Property, Plant and Equipment(Net PPE) was $46,701 Mil.
Depreciation, Depletion and Amortization(DDA) was $4,867 Mil.
Selling, General, & Admin. Expense(SGA) was $5,098 Mil.
Total Current Liabilities was $29,453 Mil.
Long-Term Debt & Capital Lease Obligation was $6,746 Mil.
Net Income was 1129 + 7930 + 1853 + 2703 = $13,615 Mil.
Non Operating Income was 108 + -145 + 37 + 328 = $328 Mil.
Cash Flow from Operations was 242 + 4370 + 3308 + 3065 = $10,985 Mil.
Total Receivables was $2,993 Mil.
Revenue was 23329 + 24318 + 21454 + 16934 = $86,035 Mil.
Gross Profit was 4511 + 5777 + 5382 + 4234 = $19,904 Mil.
Total Current Assets was $42,997 Mil.
Total Assets was $86,833 Mil.
Property, Plant and Equipment(Net PPE) was $38,666 Mil.
Depreciation, Depletion and Amortization(DDA) was $3,913 Mil.
Selling, General, & Admin. Expense(SGA) was $4,030 Mil.
Total Current Liabilities was $27,436 Mil.
Long-Term Debt & Capital Lease Obligation was $3,661 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total 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)
=(3887 / 94745) / (2993 / 86035)
=0.041026 / 0.034788
=1.1793

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)
=(19904 / 86035) / (16845 / 94745)
=0.231348 / 0.177793
=1.3012

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 Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (50535 + 46701) / 109226) / (1 - (42997 + 38666) / 86833)
=0.109772 / 0.05954
=1.8437

4. SGI = Sales Growth Index

Ratio of Revenue 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
=94745 / 86035
=1.1012

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization 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))
=(3913 / (3913 + 38666)) / (4867 / (4867 + 46701))
=0.0919 / 0.09438
=0.9737

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales 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)
=(5098 / 94745) / (4030 / 86035)
=0.053808 / 0.046841
=1.1487

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 in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((6746 + 29453) / 109226) / ((3661 + 27436) / 86833)
=0.331414 / 0.358124
=0.9254

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
=(13615 - 328 - 10985) / 109226
=0.021076

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Tesla has a M-score of -1.63 signals that the company is likely to be a manipulator.


Tesla (LIM:TSLA) Business Description

Address
1 Tesla Road, Austin, TX, USA, 78725
Founded in 2003 and based in Palo Alto, California, Tesla is a vertically integrated sustainable energy company that also aims to transition the world to electric mobility by making electric vehicles. The company sells solar panels and solar roofs for energy generation plus batteries for stationary storage for residential and commercial properties including utilities. Tesla has multiple vehicles in its fleet, which include luxury and midsize sedans and crossover SUVs. The company also plans to begin selling more affordable sedans and small SUVs, a light truck, a semi truck, and a sports car. Global deliveries in 2022 were a little over 1.3 million vehicles.

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