Tesla Financial Statements and Financial Ratios Analyzed from 2015 to 2019
Thanks for visiting my Tesla Financial Report page. On this page, you will be able to find preliminary information about Tesla current financial performance as well as some historical track records and trends.
For a more detailed examination of Tesla 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 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 provided in each section to help YOU conduct your OWN financial analysis!
- Each section includes an “in other words” segment. This is were I use plain English to explain concepts.
Enjoy the preliminary information and for a more detailed analysis, buy the financial report!
Sample Financial Report
Sample Table of Contents for Financial Reports
Table of Contents
Page Count: 88 Pages
- Disclaimer 3
About the Author 7
Company Summary 8
Financial Statement Introduction 10
Income Statement 11
Walmart’s Income Statement – Summary Analysis 12
Income Statement Discussion 12
Balance Sheet 21
Balance Sheet – Summary Analysis 22
Balance Sheet Discussion 23
Financial Ratios 38
Liquidity Ratios 39
Liquidity Ratios - Summary Analysis 39
Liquidity Ratios Discussion 40
Current Ratio 40
Quick Ratio 41
Cash Ratio 42
Other Liquidity Ratios 42
Net Operating Working Capital 42
Asset Ratios 44
Asset Utilization Ratios - Summary Analysis 45
Asset Utilization Ratios Discussion 46
Total Asset Turnover 46
Fixed Asset Turnover 46
Days Sales Outstanding 47
Inventory Turnover 48
Accounts Receivable Turnover 49
Accounts Payable Turnover 50
Other Asset Ratio Calculations 50
Working Capital Turnover 50
Average Days in Inventory 51
Average Days Payable 51
Profitability Ratios 52
Profitability Ratios - Summary Analysis 53
Profitability Ratios Discussion 53
Return on Assets (ROA) 53
Return on Equity (ROE) 54
Profit Margin 55
Gross Profit Margin 56
Operating Profit Margin 56
Basic Earnings Power 57
Capital Employed 58
Debt Ratios 59
Walmart’s Debt Ratios - Summary Analysis 59
Debt Ratios Discussion 60
Long-Term Debt Ratio 60
Debt to Equity Ratio 61
Times Interest Earned 61
Book Value of WACC 63
Free Cash Flow (FCF) 65
Free Cash Flows – 2016 - 2020 65
Free Cash Flows – 5 Year Projections 66
Income Statement – Projections for 5 years 67
Income Statement – 5 Year Projections 67
Balance Sheet – Projections for 5 years 68
Balance Sheet – 5 Year Projections 68
Company Valuation and Intrinsic Stock Price 70
Appendix 1: Summarized Income Statement 71
Appendix 2: Income Statement – Percent of Sales 72
Appendix 3: Income Statement – Year over Year Growth 73
Appendix 4: Summarized Balance Sheet 74
Appendix 5: Balance Sheet as Percent of Total Assets 76
Appendix 6: Summarized Financial Ratios 77
Tesla: Brief Summary
Tesla Inc. has its global headquarters in Palo Alto, CA. The company competes in the auto manufacturing industry, specifically in the consumer cyclical sector. At present, the company employs approximately 40,000 people. Tesla’s main revenue generator is the design, development, and leasing of electrical vehicles as well as energy generation and storage apparatuses.
From a financial perspective, the company has a market capitalization of $266.8 billion. The company has a beta of 1.20. This indicates to investors that the company stock is moderately 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 their profits. As for the stock price range, in the last 52 weeks, the organization stock is ranges from $211 to $1,794.99.
Tesla Financial Report Sources
“Tesla 2019 Company Analysis… For Beginners: Financial Statements and Financial Ratios: Defined, Discussed, and Analyzed for 5 Years” was written by, Paul Borosky, MBA. and owner of Quality Business Plan. In this report, I used Tesla 2018 10k, 2017 10k annual report, 2016 10k annual report, 2015 10k annual report, and 2019 10k annual report as the basis for information gathering.
Section 1: Tesla Income Statement Analyzed 2015 to 2019
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 2015 to 2019, in most cases.
Tesla Revenue Growth.
In 2015, Tesla had revenues of about $4 billion. In the next several years, the organization would more than triple the revenues in 2019 ending with $24.5 billion. Substantial growth indicates that consumers are well-receiving products designed and sold by the company. Further, this also indicates that Tesla is able to deliver their products in a timely manner, or at least an acceptable manner for their consumers.
Tesla Income Statement 2019
|R & D|
Section 2: Tesla Balance Sheet Analyzed from 2015 to 2019
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 2015 to 2019. Next, I then offer a summary analysis of their important balance sheet line items.
In my most humble of opinion, the biggest concern that I have with Tesla stock and organization as a whole would be their cash position. Granted, in 2015, Tesla had approximately $1.1 billion in cash. Further, the company was able to increase its cash position to $6.2 billion in 2019. However, the company’s net profits for the last five years has been negative. This means that the firm may be getting its cash position from taking on additional debt. If this is the case, then investors should expect or at least hope that the company starts turning a profit in the near future.
Tesla Balance Sheet 2019
|Short Term Investment||-||-||-||-||-|
|LT Debt - Current||1,785||2,568||9,415||5,860||633|
|Total Current Liabilities||10,667||9,993||7,674||5,827||2,816|
|Total Equity & Liability||34,309||29,740||28,655||22,664||8,092|
Section 3: Tesla Financial Ratios Analyzed from 2015 to 2019
For this section, I have chosen several different financial ratios to review for Tesla from 2015 to 2019. 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 Current Ratio.
Tesla had a .99 current ratio in 2015. The company would slightly increase its current ratio to 1.07 in 2016. In the next three years, the organization would fluctuate its current ratio from .83 and 2018 to an all-time high, at least for the last five years, of 1.13 and 2019. The huge fluctuations in the current ratio indicate that the company does not have provable sustainable business models implemented to ensure continuous funding for operations. In other words, it seems like the company is getting money where it can to sustain operations until growth kicks in. For a technology company, this is unfortunately almost commonplace. From an investor’s perspective, this can be skin-crawlingly risky.
Tesla Total Asset Turnover.
Tesla’s total asset turnover in 2015 was .5. In the next year, the total asset turnover would fall to .31. Fortunately though, in the next three years, the organization would increase the total asset turnover and in 2019 at .72. This indicates that the company is finding ways to continually improve the usage of their assets in reference to generating revenues. As a manufacturer, this is absolutely critical.
Tesla Return on Assets.
Tesla’s return on assets was an embarrassing -10.97% in 2015. Fortunately, the company would continually improve the return on assets over the next four years ending 2019 at -2.26%. Until the firm starts turning a profit, and a negative return on assets should be expected.
Tesla Debt ratio.
Tesla had a debt ratio of 25.21% in 2015. In the next four years, the company would continually increase its debt ratio ending 2019 at 33.91%. The cumulative growth in debt should be a major concern for investors. This is because if the company does not start turning her profit, then eventually the company will start borrowing money to pay back previously borrowed money. A downward spiral that can only lead to pain and aggravation for the company as well as investors, for my most humble of opinions.
Tesla Liquidity Ratios 2019
|Net Working Capital||4,468||2,249|
Tesla Asset Utilization 2019
|Total Asset Turnover||0.72||0.72|
|Fixed Asset Turnover||2.36||1.89|
|Days Sales Outstanding||19.66||16.14|
|Accounts Receivable Turnover||18.56||22.61|
|Working Capital Turnover||5.50||9.54|
|Average Days Inventory||0.02||0.02|
|Average Days Payable||0.02||0.02|
Tesla Profitability Ratios 2019
|Return on Assets||-2.26%||-3.57%|
|Return on Equity||-11.71%||-21.59%|
|Net Profit Margin||-3.15%||-4.95%|
|Gross Profit Margin||16.56%||18.83%|
|Operating Profit Margin||-0.28%||-1.81%|
|Basic Earning Power||-0.20%||-1.30%|
Tesla Long-term Debt 2019
|Times Interest Earned||(0.10)||(0.59)|