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REE Automotive (REE Automotive) Beneish M-Score : 0.00 (As of May. 01, 2024)


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What is REE Automotive 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.

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

During the past 5 years, the highest Beneish M-Score of REE Automotive was 0.00. The lowest was 0.00. And the median was 0.00.


REE Automotive Beneish M-Score Historical Data

The historical data trend for REE Automotive'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.

REE Automotive Beneish M-Score Chart

REE Automotive Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
- - - - -

REE Automotive Quarterly Data
Dec19 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Jun23 Sep23 Dec23
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 - - - - -

Competitive Comparison of REE Automotive's Beneish M-Score

For the Recreational Vehicles subindustry, REE Automotive'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.


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

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

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



REE Automotive 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 REE Automotive 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 * +0.528 * +0.404 * +0.892 * +0.115 *
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * +4.679 * -0.327 *
=

* 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 (Dec23) TTM:Last Year (Sep22) TTM:
Total Receivables was $2.11 Mil.
Revenue was 0.455 + 0.21 + 0 + 0 = $0.67 Mil.
Gross Profit was -0.458 + -1.204 + 0 + 0 = $-1.66 Mil.
Total Current Assets was $93.50 Mil.
Total Assets was $137.90 Mil.
Property, Plant and Equipment(Net PPE) was $38.52 Mil.
Depreciation, Depletion and Amortization(DDA) was $4.65 Mil.
Selling, General, & Admin. Expense(SGA) was $26.03 Mil.
Total Current Liabilities was $35.18 Mil.
Long-Term Debt & Capital Lease Obligation was $21.25 Mil.
Net Income was -35.233 + -24.142 + 0 + -27.259 = $-86.63 Mil.
Non Operating Income was 0 + 0 + 0 + 1.586 = $1.59 Mil.
Cash Flow from Operations was -23.084 + -19.734 + 0 + -27.768 = $-70.59 Mil.
Total Receivables was $10.34 Mil.
Revenue was 0 + 0 + 0 + 0 = $0.00 Mil.
Gross Profit was 0 + -0.009 + -0.538 + -0.656 = $-1.20 Mil.
Total Current Assets was $195.50 Mil.
Total Assets was $241.76 Mil.
Property, Plant and Equipment(Net PPE) was $39.66 Mil.
Depreciation, Depletion and Amortization(DDA) was $3.37 Mil.
Selling, General, & Admin. Expense(SGA) was $55.35 Mil.
Total Current Liabilities was $25.12 Mil.
Long-Term Debt & Capital Lease Obligation was $18.79 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)
=(2.109 / 0.665) / (10.338 / 0)
=3.171429 /
=

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)
=(-1.203 / 0) / (-1.662 / 0.665)
= / -2.499248
=

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 - (93.504 + 38.517) / 137.9) / (1 - (195.497 + 39.661) / 241.762)
=0.042632 / 0.027316
=

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
=0.665 / 0
=

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))
=(3.37 / (3.37 + 39.661)) / (4.649 / (4.649 + 38.517))
=0.078316 / 0.107701
=

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)
=(26.026 / 0.665) / (55.35 / 0)
=39.136842 /
=

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)
=((21.246 + 35.179) / 137.9) / ((18.791 + 25.116) / 241.762)
=0.409173 / 0.181612
=

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
=(-86.634 - 1.586 - -70.586) / 137.9
=-0.127875

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.


REE Automotive Beneish M-Score Related Terms

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REE Automotive (REE Automotive) Business Description

Traded in Other Exchanges
N/A
Address
Kibbutz Glil-Yam, Herzliya, ISR, 4690500
REE Automotive Ltd is a technology company whose mission is to be the cornerstone for zero-emission electric and autonomous vehicles. Company aims to empower the companies, such as original equipment manufacturers, or OEMs, delivery and logistics fleets, dealers, e-commerce retailers, new mobility players, Mobility-as-a-Service providers and autonomous drive companies, in the build-out of any size or shape of electric or autonomous vehicle - from Class 1 through Class 6, focusing primarily on Class 3 through 5 platform models on the P7 EV platform. Geographical preference in Israel, Germany, Norway, U.S, and Rest of the world.
Executives
David Weisburd other: Member of Sponsor 1 WORLD TRADE CENTER, FLOOR 85, NEW YORK NY 10007
Hans Thomas director 1 WORLD TRADE CENTER, FLOOR 85, NEW YORK NY 10007