Nikolacorp Stock Beneish M Score

NKLA Stock  USD 0.70  0.02  2.78%   
This module uses fundamental data of NikolaCorp to approximate the value of its Beneish M Score. NikolaCorp M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Check out NikolaCorp Piotroski F Score and NikolaCorp Altman Z Score analysis.
For information on how to trade NikolaCorp Stock refer to our How to Trade NikolaCorp Stock guide.
  
At present, NikolaCorp's Short Term Debt is projected to increase significantly based on the last few years of reporting. The current year's Debt To Assets is expected to grow to 0.20, whereas Net Debt is forecasted to decline to (190.1 M). At present, NikolaCorp's Book Value Per Share is projected to increase slightly based on the last few years of reporting. The current year's Inventory Turnover is expected to grow to 4.79, whereas Price To Sales Ratio is forecasted to decline to 18.55.
At this time, it appears that NikolaCorp is an unlikely manipulator. The earnings manipulation may begin if NikolaCorp's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by NikolaCorp executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of NikolaCorp's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-3.35
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

1.0

Focus
Asset Quality

0.003585

Focus
Expense Coverage

0.87

Focus
Gross Margin Strengs

0.95

Focus
Accruals Factor

0.87

Focus
Depreciation Resistance

1.0

Focus
Net Sales Growth

1.05

Focus
Financial Leverage Condition

-0.47

Focus

NikolaCorp Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if NikolaCorp's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Total Revenue37.6 M35.8 M
Sufficiently Up
Slightly volatile
Total Assets926.4 M1.3 B
Way Down
Slightly volatile
Total Current Assets462.5 M571.9 M
Significantly Down
Slightly volatile
Non Current Assets Total507 M734.7 M
Way Down
Pretty Stable
Property Plant Equipment564.7 M537.8 M
Sufficiently Up
Slightly volatile
Depreciation And Amortization37.7 M35.9 M
Sufficiently Up
Slightly volatile
Selling General Administrative218.1 M239.7 M
Significantly Down
Slightly volatile
Total Current Liabilities163.8 M260.1 M
Way Down
Slightly volatile
Short Term Debt17.3 M10.8 M
Way Up
Slightly volatile
Long Term Debt112.6 M141.4 M
Significantly Down
Slightly volatile

NikolaCorp Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between NikolaCorp's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards NikolaCorp in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find NikolaCorp's degree of accounting gimmicks and manipulations.

About NikolaCorp Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Depreciation And Amortization

37.68 Million

At present, NikolaCorp's Depreciation And Amortization is projected to increase significantly based on the last few years of reporting.

NikolaCorp Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as NikolaCorp. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201920202021202220232024 (projected)
Net Receivables658K0.02.7M31.9M27.2M28.6M
Total Assets229.4M1.1B989.8M1.2B1.3B926.4M
Total Current Assets90.9M896.9M524.7M436.9M571.9M462.5M
Net Debt(80.9M)(822.9M)(469.8M)149.6M(181.1M)(190.1M)
Operating Income(88.0M)(368.3M)(693.5M)(748.7M)(642.5M)(674.6M)

About NikolaCorp Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze NikolaCorp's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of NikolaCorp using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of NikolaCorp based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.

Building efficient market-beating portfolios requires time, education, and a lot of computing power!

The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.

Try AI Portfolio Architect
When determining whether NikolaCorp offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of NikolaCorp's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Nikolacorp Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Nikolacorp Stock:
Check out NikolaCorp Piotroski F Score and NikolaCorp Altman Z Score analysis.
For information on how to trade NikolaCorp Stock refer to our How to Trade NikolaCorp Stock guide.
You can also try the Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.

Complementary Tools for NikolaCorp Stock analysis

When running NikolaCorp's price analysis, check to measure NikolaCorp's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy NikolaCorp is operating at the current time. Most of NikolaCorp's value examination focuses on studying past and present price action to predict the probability of NikolaCorp's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move NikolaCorp's price. Additionally, you may evaluate how the addition of NikolaCorp to your portfolios can decrease your overall portfolio volatility.
Bond Analysis
Evaluate and analyze corporate bonds as a potential investment for your portfolios.
Volatility Analysis
Get historical volatility and risk analysis based on latest market data
Equity Valuation
Check real value of public entities based on technical and fundamental data
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Watchlist Optimization
Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm
Theme Ratings
Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance
Portfolio Optimization
Compute new portfolio that will generate highest expected return given your specified tolerance for risk
Latest Portfolios
Quick portfolio dashboard that showcases your latest portfolios
Companies Directory
Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals
Odds Of Bankruptcy
Get analysis of equity chance of financial distress in the next 2 years
Is NikolaCorp's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of NikolaCorp. If investors know NikolaCorp will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about NikolaCorp listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(1.21)
Revenue Per Share
0.045
Quarterly Revenue Growth
0.757
Return On Assets
(0.31)
Return On Equity
(1.39)
The market value of NikolaCorp is measured differently than its book value, which is the value of NikolaCorp that is recorded on the company's balance sheet. Investors also form their own opinion of NikolaCorp's value that differs from its market value or its book value, called intrinsic value, which is NikolaCorp's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because NikolaCorp's market value can be influenced by many factors that don't directly affect NikolaCorp's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between NikolaCorp's value and its price as these two are different measures arrived at by different means. Investors typically determine if NikolaCorp is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, NikolaCorp's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.