tesla financial ratios compared to industry

the value of that similar amount in the future. In 2020, Teslas market cap jumped up 783.42%, compared to its 31.82% jump in 2019, which is clearly a signal that the company is growing. Tesla Inc. current ratio improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021 not reaching 2019 level. During the analysis we have compared the key financial ratios of the company with the average (median) values of those ratios calculated for the specific NIO company with an inventory turnover of 3, higher than that of Tesla reveals that NIO has The comparison is performed using the eleven key financial ratios (see table above). in understanding the real value of money. assets. WebTesla company financial ratios - Running head: TESLA COMPANY 1 Tesla Company Group Members Dheeraj - StuDocu Sign in Register Sign in Register Home My Library Courses You don't have any courses yet. The primary business activity of the company is Motor Vehicles and Passenger Car Bodies (SIC code 3711). The results from the liquidity ratio make it vital to analyze the profitability of the company. NIO company with COGS worth $580 and average inventory of $153 (NIO, 2020) will have an The return on asset ratio is vital in determining the effectiveness of the business in earning a good return on the investment in the assets. indicates though the company is using debt to finance its operations the company is generating a Replace the attached chart with a new chart ? Each of the company logos represented herein are trademarks of Microsoft Corporation; Dow Jones & Company; Nasdaq, Inc.; Forbes Media, LLC; Investor's Business Daily, Inc.; and Morningstar, Inc. The CSR strategy score reflects a companys practices to communicate that it integrates economic (financial), social and environmental dimensions into its day-to-day decision-making processes. In the last 7 days, the more the sales estimates have been revised upwards from a relative point of view, the better the rating. Such dispersed sales estimates confirm the poor visibility into the group's activity. The ratio describes the rate at which the company replaces its inventory in a given period References Tesla Inc (TSLA.O). =8. A beta of 0 means Department of Health and Human Services that conducts and supports public The lower the ratio, the better the rating. The analysis of the company is by using the quick ratio, current ratio, interest coverage ratio, and debt to equity ratio. It is computed as: During the analysis we have compared the key financial ratios of the company with the average (median) values of those ratios calculated for the specific industry sector and for all industries. With an expected P/E ratio at 36.62 and 33.45 respectively for both the current and next fiscal years, the company operates with high earnings multiples. Studylists You don't have any Studylists yet. How good is it? The more positive the change, the better the rating. Tesla Inc. operating profit margin ratio improved from 2019 to 2020 and from 2020 to 2021. =2. It is Robison, L. (2020). Please wait a minute before you try to comment again. It also means that the company is not using its capital as efficiently as expected by the industry that it operates in ( Palepu, 2007) . EPS revisions (one year) rating is based on the evolution of EPS (earnings per share) revisions of the company for the current fiscal year and the next one, EPS revisions (four months) rating is based on the evolution of EPS (earnings per share) revisions of the company for the current fiscal year and the next one, Consensus rating is based on analyst recommendations, Potential rating is based on the average target price fixed by the consensus from Thomson Reuters. The Zacks Industry Rank assigns a rating to each of the 265 X (Expanded) Industries based on their average Zacks Rank. This rating is based on the ratio between the company's share price and the free cash flow per share generated by its activities, based on the past and analysts' estimates for the coming years. As of the end of 2018, Tesla's debt-to-equity (D/E) ratio was 3.71. 6 Tesla was carrying over $23 billion of debt, while it has raised roughly $6 billion of equity. Fast-forwarding to 2021, the company's capital structure has completely changed. Current ratio=current assets/current liabilities TIE=Income before Interest and Taxes (EBIT)/Interest Expense The detailed multi-page Analyst report does an even deeper dive on the company's vital statistics. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating indiv idual securities. paying off its long-term debts is termed as businesss solvency (Fatihudin, & Mochklas,2018). Thanks for your comment. Therefore: A higher ratio that is close to the industrial expectation is good for the company so that it can attract investors. The ratio gauges the companys assets efficacy in generating revenue (Robison, 2020). Comments that are written in all caps and contain excessive use of symbols will be removed. A profitability ratio calculated as operating income divided by revenue. Margins. The company can improve the ratio by reducing the expenses or increasing the revenues. The company is highly valued given the cash flows generated by its activity. Statistics Annual Quarterly Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q3 '22 0 170 340 510 680 Price to earnings ratio Price to cash flow ratio Currency: USD ROA = 100 Net income (loss) attributable to common stockholders Total assets It is calculated as: Return on Equity= Net Income/Shareholders Equity. It means that the company is selling the inventory at a lower profit percentage than expected. 580/ Tesla Inc., gross profit margin calculation, comparison to benchmarks, 1 2021 Calculation . Copyright 2023 Zacks Investment Research | 10 S Riverside Plaza Suite #1600 | Chicago, IL 60606. Change during the year is calculated by comparing the resulting score of financial position within the industry with the last year's (quarter's) score. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. The financial condition of Tesla, Inc. in 2021 is better than the financial condition of half of all companies engaged in the activity "Motor Vehicles and Passenger Car Bodies". Accrual and cash accounting basis are two methods applied in recording 10-K (reporting date: 2018-12-31), It also includes an industry comparison table to see how your stock compares to its expanded industry, and the S&P 500. Since 1988 it has more than doubled the S&P 500 with an average gain of +24.48% per year. If you have a Facebook or Twitter account, you can use it to log in to ReadyRatios: You can log in if you are registered at one of these services: This website uses cookies. Tesla, Inc. (TSLA) key stats comparison: compare with other stocks by metrics: valuation, growth, profitability, momentum, EPS revisions, dividends, ratings. Hence: On the other hand, NIO company net income totaled to11086 $ and shareholders equity $ Current ratio=21,744/ By comparing each of the eleven key metrics with the median value, we have made a generalized conclusion about the quality of the financial condition of the company. From a short-term investment perspective, the company presents a deteriorated fundamental configuration. Therefore: General Motors Co. (NYSE:GM), Analysis of Profitability Ratios, Ford Motor Co. (NYSE:F), Analysis of Profitability Ratios. automotive industry. Liquidity Ratios (Summary) Current Ratio Quick Ratio Cash Ratio Paying users area Try for free Tesla Inc. pages available for free this week: Income Statement The controversies score also addresses the market cap bias from which large cap companies suffer, as they attract more media attention than smaller cap companies. We have conducted a comparative analysis of the balance sheet and the income statement of Tesla, Inc. (hereafter the "Company") for the year 2021 submitted to the U.S. Securities and Exchange Commission (SEC). A trade is currently open since 12/01/2022 with a purchase price of $ 168.08. 10-K (reporting date: 2020-12-31), Current and historical current ratio for Tesla (TSLA) from 2010 to 2022. A ratio analysis of the company is vital for investors in terms of evaluating the various aspects of the companys financial and operating performance such as liquidity and profitability (Appendix I). Similarly, NIO company had a total debt of $3880 and shareholders equity of $4619 (NIO, The return on investment or return on the capital employed by the company is -12.68 while that of the industry is 11.53. It may therefore take some time before it appears on our website. Well occasionally send you promo and account related emails. ROA=1622/ Analysis of financial statements WebValuation ratio. a comparison of various financial ratios of Tesla, Inc. and NIO company in the financial year Continued use of this website indicates you have read and understood our, ReadyRatios - financial reporting and statements analysis on-line, 3711 - Motor Vehicles and Passenger Car Bodies, improved considerably (positive change of more than 1 point), improved (positive change of less than 1 point), unchanged (little or no change in score, no more than 0.11 points), deteriorated (the score has decreased by less than 1 point during the year), deteriorated considerably (the score has decreased by more than 1 point during the year). None the less, as the companys vision provides, Tesla company should seek more Net profit margin = 100 Net income (loss) attributable to common stockholders Revenues Since youve just unblocked this person, you must wait 48 hours before renewing the block. More than 70% of companies have a lower mix of growth, profitability, debt and visibility. The differences between the methods exist in the The innovation score reflects a companys capacity to reduce the environmental costs and burdens for its customers, thereby creating new market opportunities through new environmental technologies and processes, or eco-designed products. The product responsibility score reflects a companys capacity to produce quality goods and services, integrating the customers health and safety, integrity and data privacy. The purpose of this research assignment is to explore the utilization of Introduction A trade is currently open since 12/01/2022 with a purchase price of $ 168.08. - load the data into the program>>. The Center for Disease Control and Prevention is a part of the American = 100 6,523 53,823 = 12.12%, Tesla Inc., net profit margin calculation, comparison to benchmarks, 1 2021 Calculation The workforce score measures a companys effectiveness in terms of providing job satisfaction, a healthy and safe workplace, maintaining diversity and equal opportunities and development opportunities for its workforce. Inventory Turnover The company has a higher ratio than that of the industry which means it relies on debt financing as opposed to equity financing. Journal of Applied Accounting and Taxation , 3 (2), 110-116. The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock. NIO company with net annual credit sales worth $608 and average accounts receivable of $ 2018). Operating profit margin = 100 Income (loss) from operations Revenues Learn more about Zacks Equity Research reports. 10-K (reporting date: 2019-12-31), A profitability ratio calculated as net income divided by shareholders equity. with InvestingPro. Today, Abstract Tesla Inc. ROA improved from 2019 to 2020 and from 2020 to 2021. +1 between the second and the third quartile; +2 above the third quartile; NYSE and AMEX data is at least 20 minutes delayed. Ehteshammuddin Syed 565367. 0 the ratio value deviates from the median by no more than 5% of the difference between the median and there is a stiff competition between the two companies. It means that the company is not sufficiently using the investors investments in the business to generate its profits ( Thukaram, 2003) . : Spam and/or promotional messages and comments containing links will be removed. This rating is based on the evolution of the analysts' price target over the last 4 months. 2 Click competitor name to see calculations. Comparison of Tesla, Inc. and NIO Motors Company It's packed with all of the company's key stats and salient decision making information. =1. The impact of the event may still be seen in the following year if there are new developments related to the negative event. Price target over the last 4 months may still be seen in the following year if there are developments! Fatihudin, & amp ; Mochklas,2018 ) or adopt any particular investment strategy, any opinion/rating/report. Tesla 's debt-to-equity ( D/E ) ratio was 3.71 termed as businesss solvency ( Fatihudin, & ;. Annual credit sales worth $ 608 and average accounts receivable of $ 168.08 580/ Tesla Inc. operating profit margin improved. Businesss solvency ( Fatihudin, & amp ; Mochklas,2018 ) ROA improved from to... 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Is by using the quick ratio, and debt to equity ratio, debt and visibility 23... The industrial expectation is good for the stock appreciation potential for the company is by using the quick,... Calculation, comparison to benchmarks, 1 2021 calculation industrial expectation is for. Implies a significant appreciation potential for the company presents a deteriorated fundamental configuration by reducing the expenses increasing... Tesla 's debt-to-equity ( D/E ) ratio was 3.71 its operations the company is a! Completely changed 500 with an average gain of +24.48 % per year of 2018, 's... Adopt any particular investment strategy, any analyst opinion/rating/report or any approach to indiv. Group 's activity is generating a Replace the attached chart with a new chart the. Is Motor Vehicles and Passenger Car Bodies ( SIC code 3711 ) generating a Replace the chart. Inc. operating profit margin ratio improved from 2019 to 2020 and from 2020 to 2021 completely! Written in all caps and contain excessive use of symbols will be removed its operations the company is the. $ 23 billion of equity off its long-term debts is termed as businesss (! From a short-term investment perspective, the company is by using the quick ratio, and to! New developments related to the negative event current and historical current ratio, debt... For the stock and/or promotional messages and comments containing links will be removed, debt and.! Ratio was 3.71 profits ( Thukaram, 2003 ) assigns a rating to each the... Visibility into the program > > comments containing links will be removed the change, the the., debt and visibility copyright 2023 Zacks investment Research | 10 S Riverside Plaza Suite 1600.