Tesla Financial Statements and Financial Ratios Analyzed from 2016 to 2020
Hey All,
Thanks for visiting my Tesla Financial Report page. On this page, you will be able to find preliminary information about Tesla's current financial performance as well as some historical track records and trends.
For a more detailed examination of Tesla's financial performance, please check out the "Financial Report". In this report, written by myself, Paul Borosky, MBA., Doctoral Candidate, and published author, you will find:
- Summarized income statement for the last 5 years.
- Summarized balance sheet for the last 5 years.
- Summary analysis by myself of the important income statement, balance sheet, and financial ratio trends, and other happenings.
- Five year’s worth of over twenty common financial ratios presented with formulas, calculations, and analysis tips for each ratio.
- Line by line description, explanation, and analysis tip for most financial statement line items and financial ratios.
- Professional financial analysis tips are provided in each section to help YOU conduct your OWN financial analysis!
- Each section includes an “in other words” segment. This is where I use plain English to explain concepts.
Enjoy the preliminary information and for a more detailed analysis, buy the financial report!
Sincerely,
Paul, MBA. (Updated 2021)
PDF/Downloadable Version
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Sample Financial Report
Tesla: Brief Summary
Tesla Inc. has its global headquarters in Palo Alto, CA. The company competes in the auto manufacturing industry, specifically in the cyclical consumer sector. At present, the company employs approximately 70,000 people. Tesla’s main revenue generator is the design, development, and leasing of electric vehicles, as well as energy generation and storage devices.
From a financial perspective, the company has a market capitalization of $580 billion. The company has a beta of 2.0. This indicates to investors that the company stock is substantially riskier as compared to the overall market. In the last several years, Tesla has yet to pay any dividends. This means that the firm is continually finding ways to re-invest its profits. As for the stock price range, in the last 52 weeks, the organization’s stock was between $187.43 to $900.40.
Section 1: Tesla Income Statement Analyzed 2016 to 2020
In this section, I walk through a broad definition as to what an income statement is and why it is important. From this, I then discuss and define income statement line items, such as revenues, gross profits, etc. in detail. After each line item is defined and discussed, I finally offer a summary analysis of Tesla important income statement line item trends from 2016 to 2020, in most cases.
Tesla Revenue Growth.
In 2016, Tesla ended the year with $6.3 billion in revenues. Over the next four years, the organization’s revenues would skyrocket, ending 2020 at $27.2 billion. On average, this is an average annual growth rate for revenues of approximately 46.8%. Based on my experience, this is a substantial and impressive growth rate for a multinational organization. However, investors should not anticipate or expect this double-digit growth rate to hold for the long term.
Tesla 2020 Income Statement Summary |
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| 2020 | 2019 | 2018 | 2017 | 2016 | |
| Revenues | 27,236 | 20,821 | 18,515 | 9,641 | 6,350 |
| COGS | 24,906 | 20,509 | 17,419 | 9,536 | 5,400 |
| Gross Profit | 6,630 | 4,069 | 4,042 | 2,223 | 1,599 |
| SG&A | 3,145 | 2,646 | 2,835 | 2,477 | 1,432 |
| Depreciation | 2,322 | 2,154 | 1,901 | 1,636 | 947 |
| R & D | |||||
| Other | |||||
| Operating Expenses | 4,636 | 4,138 | 4,430 | 3,855 | 2,266 |
| EBIT | 1,994 | (69) | (388) | (1,632) | (667) |
| Other Income | |||||
| Interest Expense | 748 | 685 | 663 | 471 | 198 |
| EBT | 1,154 | (665) | (1,005) | (2,209) | (746) |
| Taxes | 292 | 110 | 58 | 32 | 26 |
| Net Income | 862 | (775) | (1,063) | (2,241) | (773) |
| Tax Rate | 25.3% | -16.5% | -5.8% | -1.4% | -3.5% |
Section 2: Tesla Balance Sheet Analyzed from 2016 to 2020
For Tesla balance sheet, I again go through each important line item from the balance sheet. In reviewing each line item, I will define their balance sheet line item, such as cash, property, plant and equipment, and liabilities between 2016 to 2020. Next, I then offer a summary analysis of their important balance sheet line items.
Tesla Cash.
Tesla’s cash position ended 2016 at $3.3 billion. In the following year, the organization’s cash position would stay the same. However, in the next three years, the firm would continually increase its cash position ending 2020 at $19.3 billion. Since the organization has been running a deficit for net income for the last four of its five years, the increase in cash position can only mean the firm is taking out substantial debt. As a company takes out debt, it inherently increases its risk from the perspective of investors. A better strategy would be for the firm to identify the amount of cash needed to sustain operations and limit its debt accumulation to only meeting its needs.
Tesla Summary Balance Sheet |
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| Column1 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| Cash | 19,384 | 6,268 | 3,686 | 3,367 | 3,393 | |
| Short Term Investment | - | - | - | - | - | |
| Account Receivable | 1,886 | 1,324 | 949 | 515 | 499 | |
| Inventory | 4,101 | 3,552 | 3,113 | 2,263 | 2,067 | |
| Other | ||||||
| Current Assets | 26,717 | 12,103 | 8,307 | 6,570 | 6,259 | |
| Net PPE | 12,747 | 10,396 | 11,330 | 10,027 | 5,982 | |
| Goodwill | 207 | 198 | 68 | 60 | - | |
| Other | ||||||
| Total Assets | 52,148 | 34,309 | 29,740 | 28,655 | 22,664 | |
| Accounts Payable | 6,051 | 3,771 | 3,405 | 2,390 | 1,860 | |
| Accrued Expense | 3,855 | 2,905 | 2,094 | 1,731 | 1,210 | |
| Accrued Taxes | ||||||
| Notes Payable | ||||||
| LT Debt - Current | 2,132 | 1,785 | 2,568 | 9,415 | 5,860 | |
| Other | ||||||
| Total Current Liabilities | 14,248 | 10,667 | 9,993 | 7,674 | 5,827 | |
| LT Debt | 9,556 | 11,634 | 9,404 | 9,415 | 5,860 | |
| Other | ||||||
| Total Liabilities | 28,418 | 26,199 | 23,427 | 23,022 | 16,750 | |
| Common Stock | 27,260 | 12,737 | 10,249 | 9,178 | 7,773 | |
| Treasury | ||||||
| Retained Earnings | (5,399) | (6,083) | (5,318) | (4,974) | (2,997) | |
| Other | ||||||
| Total Equity | 22,225 | 6,618 | 4,923 | 4,237 | 4,752 | |
| Total Equity & Liability | 52,148 | 34,309 | 29,740 | 28,655 | 22,664 | |
Section 3: Tesla Financial Ratios Analyzed from 2016 to 2020
For this section, I have chosen several different financial ratios to review for Tesla from 2016 to 2020. In reviewing each of their financial ratios, I first start with defining the financial ratio. Next, I supply the financial formula for calculating the specific ratio. Finally, I offer a brief analysis of their important Financial ratios.
Tesla Total Asset Turnover.
Tesla’s total asset turnover ended 2016 at .28. In the next two years, the organization’s total asset turnover would improve, ending 2018 at .62. However, the firm would become less efficient over the last two years ending 2020 at .52. The inefficiency in this ratio is again mind-boggling. From my experience, if an organization grows exponentially, the company inevitably benefits from the economy of scale concept. However, with the company’s total asset turnover falling in the last two years, this indicates that the firm is not taking advantage of the opportunity. The main reason could be their poor use of current assets, specifically cash.
Tesla Return on Assets.
Tesla’s return on assets ended 2016 at a -3.4%. In the next year, the organization’s return on assets would fall, ending 2017 at -7.8%. However, from this point, the firm would continually improve its return on assets ending 2020 at 1.6%. This indicates that the firm is better at utilizing assets used to generate revenues. To further improve this trend, the firm needs to focus on improving its current asset utilization, specifically its cash reserves.
Tesla Liquidity Ratios 2020 |
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| Ratios | 2020 | 2019 | 2018 | 2017 | 2016 |
| Current Ratio | 1.88 | 1.13 | |||
| Cash Ratio | 1.36 | 0.59 | |||
| Quick Ratio | 1.59 | 0.80 | |||
| Net Working Capital | 15,465 | 4,468 | |||
Tesla Asset Utilization 2020 |
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| Ratios | 2020 | 2019 | 2018 | 2017 | 2016 |
| Total Asset Turnover | 0.52 | 0.61 | |||
| Fixed Asset Turnover | 2.14 | 2.00 | |||
| Days Sales Outstanding | 25.28 | 23.21 | |||
| Inventory Turnover | 6.64 | 5.86 | |||
| Accounts Receivable Turnover | 14.44 | 15.73 | |||
| Working Capital Turnover | 1.76 | 4.66 | |||
| AP Turnover | 4.50 | 5.52 | |||
| Average Days Inventory | 0.02 | 0.02 | |||
| Average Days Payable | 0.01 | 0.02 | |||
Tesla Profitability Ratios 2020 |
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| Ratios | 2020 | 2019 | 2018 | 2017 | 2016 | |
| Return on Assets | 1.65% | -2.26% | ||||
| Return on Equity | 3.88% | -11.71% | ||||
| Net Profit Margin | 3.16% | -3.72% | ||||
| Gross Profit Margin | 24.34% | 19.54% | ||||
| Operating Profit Margin | 7.32% | -0.33% | ||||
| Basic Earning Power | 3.82% | -0.20% | ||||
| ROCE | 5.26% | -0.29% | ||||
| Capital Employed | 37,900 | 23,642 | ||||
| ROIC | 5.28% | -0.54% | ||||
Tesla Long-term Debt 2020 |
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| Ratios | 2020 | 2019 | 2018 | 2017 | 2016 | |
| Debt Ratio |
18.32% |
33.91% |
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| Debt/Equity |
43.00% |
175.79% |
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| Times Interest Earned |
2.67 |
(0.10) |
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