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Tesla Beneish M-Score

: -2.69 (As of Today)
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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.

Good Sign:

Beneish M-Score -2.69 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

NAS:TSLA' s Beneish M-Score Range Over the Past 10 Years
Min: -4.24   Med: -2.18   Max: 5.64
Current: -2.69

-4.24
5.64

During the past 13 years, the highest Beneish M-Score of Tesla was 5.64. The lowest was -4.24. And the median was -2.18.


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 Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.51 -2.51 -2.16 -2.47 -2.72

Tesla Quarterly Data
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
Beneish M-Score 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 Premium Member Only Premium Member Only Premium Member Only -2.55 -2.72 -2.75 -2.67 -2.69

Competitive Comparison

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 Beneish M-Score Distribution

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 * 0.6716+0.528 * 0.9147+0.404 * 0.9382+0.892 * 1.6627+0.115 * 1.1634
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8351+4.679 * -0.1141-0.327 * 0.824
=-2.69

* 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 (Sep21) TTM:Last Year (Sep20) TTM:
Accounts Receivable was $1,962 Mil.
Revenue was 13757 + 11958 + 10389 + 10744 = $46,848 Mil.
Gross Profit was 3660 + 2884 + 2215 + 2066 = $10,825 Mil.
Total Current Assets was $25,002 Mil.
Total Assets was $57,834 Mil.
Property, Plant and Equipment(Net PPE) was $30,508 Mil.
Depreciation, Depletion and Amortization(DDA) was $2,681 Mil.
Selling, General, & Admin. Expense(SGA) was $3,992 Mil.
Total Current Liabilities was $18,051 Mil.
Long-Term Debt & Capital Lease Obligation was $8,067 Mil.
Net Income was 1618 + 1142 + 438 + 270 = $3,468 Mil.
Non Operating Income was -57 + 22 + 129 + 44 = $138 Mil.
Cash Flow from Operations was 3147 + 2124 + 1641 + 3019 = $9,931 Mil.
Accounts Receivable was $1,757 Mil.
Revenue was 8771 + 6036 + 5985 + 7384 = $28,176 Mil.
Gross Profit was 2063 + 1267 + 1234 + 1391 = $5,955 Mil.
Total Current Assets was $21,744 Mil.
Total Assets was $45,691 Mil.
Property, Plant and Equipment(Net PPE) was $21,990 Mil.
Depreciation, Depletion and Amortization(DDA) was $2,281 Mil.
Selling, General, & Admin. Expense(SGA) was $2,875 Mil.
Total Current Liabilities was $13,302 Mil.
Long-Term Debt & Capital Lease Obligation was $11,738 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Accounts Receivable 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)
=(1962 / 46848) / (1757 / 28176)
=0.04188012 / 0.06235804
=0.6716

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)
=(5955 / 28176) / (10825 / 46848)
=0.21135009 / 0.23106643
=0.9147

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 - (25002 + 30508) / 57834) / (1 - (21744 + 21990) / 45691)
=0.04018397 / 0.04283119
=0.9382

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
=46848 / 28176
=1.6627

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))
=(2281 / (2281 + 21990)) / (2681 / (2681 + 30508))
=0.09398047 / 0.08077978
=1.1634

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)
=(3992 / 46848) / (2875 / 28176)
=0.08521175 / 0.10203719
=0.8351

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)
=((8067 + 18051) / 57834) / ((11738 + 13302) / 45691)
=0.45160286 / 0.54802915
=0.824

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
=(3468 - 138 - 9931) / 57834
=-0.1141

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 -2.69 suggests that the company is unlikely to be a manipulator.


Tesla Business Description

Tesla logo
Industry
Consumer Cyclical » Vehicles & Parts NAICS : 336211 SIC : 3711
Address
3500 Deer Creek Road, Palo Alto, CA, USA, 94304
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 mid-size sedans and crossover SUVs. The company also plans to begin selling more affordable sedans and small SUVs, a light-truck, semi-truck, and a sports car. Global deliveries in 2020 were roughly 500,000 units.
Executives
Baglino Andrew D officer: SVP Powertrain and Energy Eng. 3500 DEER CREEK ROAD FREMONT CA 94538
Kirkhorn Zachary officer: Chief Financial Officer 3500 DEER CREEK ROAD PALO ALTO CA 94304
Guillen Jerome M officer: President, Automotive 3500 DEER CREEK RD. PALO ALTO CA 94304
Taneja Vaibhav officer: Chief Accounting Officer 3500 DEER CREEK ROAD PALO ALTO CA 94304
Wilson-thompson Kathleen director PO BOX 3599 BATTLE CREEK MI 49016-3599
Musk Kimbal director C/O TESLA MOTORS, INC. 3500 DEER CREEK ROAD PALO ALTO CA 94304
Denholm Robyn M director 4150 NETWORK CIRCLE SANTA CLARA CA 95054
Mizuno Hiromichi director 1-2-33-A504, KOMAZAWA SETAGAYA TOKYO M0 154-0012
Gracias Antonio J. director C/O VALOR EQUITY PARTNERS 200 SOUTH MICHIGAN AVENUE, SUITE 1020 CHICAGO IL 60604
Musk Elon director, 10 percent owner, officer: CEO C/O TESLA MOTORS, INC. 3500 DEER CREEK ROAD PALO ALTO CA 94304
Ellison Lawrence Joseph director C/O DELPHI ASSET MGMT CORPORATION 5525 KIETZKE LANE, SUITE 200 RENO NV 89511
Jurvetson Stephen T director 2882 SAND HILL ROAD, SUITE 150 MENLO PARK CA 94025
Straubel Jeffrey B officer: Chief Technical Officer C/O TESLA MOTORS, INC. 3500 DEER CREEK ROAD PALO ALTO CA 94304
Ehrenpreis Ira Matthew director 100 SHORELINE HWY SUITE 282, BLDG. B MILL VALLEY CA 94941
Buss Brad W director 198 CHAMPION COURT SAN JOSE CA 95134

Tesla Headlines

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