Tesla Financial Statements and Financial Ratios Analyzed

Tesla Financial Statements and Financial Ratios Analyzed

A Beginner's Guide to Tesla Financial Analysis - 2021

$5.99
  • Included Easy to download PDF File.
  • Included Easy to use format.
  • Included Summarized Income Statements and Balance Sheets for the last 5 years..
  • Included Popular financial ratios for the last 5 years included... with calculations and formulas!
  • Included Expert tips to help with financial statements analysis.
  • Included Expert tips to help with financial ratios analysis.
  • NOT Included-Identify and discuss financial trends for the company..
  • NOT Included-Expert financial analysis done by Paul Borosky, MBA.
  • NOT Included- Analyst "Letter Grades" for the company's ratios.
  • NOT Included-Free Annual Reports Download for (5 Years)

Tesla Financial Report by Paul Borosky, MBA. - 2021

$9.99
  • Included Easy to download PDF File.
  • Included Easy to use format.
  • Included Summarized Income Statements and Balance Sheets for the last 5 years..
  • Included Popular financial ratios for the last 5 years included... with calculations and formulas!
  • Included Expert tips to help with financial statements analysis.
  • Included Expert tips to help with financial ratios analysis.
  • Included Identify and discuss financial trends for the company.
  • Included Expert financial analysis done by Paul Borosky MBA.
  • Included Analyst "Letter Grades" for the company's ratios.
  • Included Free Annual Reports Download for the company (5 years).

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, I offer two reports, which are "A Beginner's Guide to Tesla 2021 Financial Analysis" and "Tesla 2021 Financial Report by Paul Borosky, MBA."  Both reports are written by myself, Paul Borosky, MBA., Doctoral Candidate, and published author, and include:

  • Summarized income statements for the last 5 years.
  • Summarized balance sheets for the last 5 years.
  • Five years’ 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.

 

For a MORE in-depth review of the company's financial statements and ratios, make sure to buy my "Tesla 2021 Financial Report".  The financial report includes all aspects of my "Beginner's Guide" plus a whole lot more...

  • Professional financial analysis of important income statements, balance sheets, and financial ratio trends.
  • "Letter Grade" is assigned to most financial statement line items and financial ratios to help you better understand their overall trends for the last 5 years.
  • Overall financial analysis summary for the company.

Enjoy the preliminary information and for a more detailed analysis, buy the financial report!

Sincerely,

Paul, MBA.

PDF/Downloadable Versions

Tesla 2021 Financial Report and Financial Analysis by Paul Borosky, MBA.
  • Included - Free Bonus Downloads: Annual Statements for Five Years (2016-2020 10k reports)!
  • Included - Expert financial analysis done by Paul Borosky MBA.
  • Included - Analyst "Letter Grades" for ratios.
  • **See Terms and Conditions.

Tesla Beginner’s Guide 2021

  • Disclaimer 3
  • Forward 4
  • Income Statement 6
  • Tesla’s Summarized Income Statements 6
  • Revenues 6
  • Cost of Goods Sold (COGS) 7
  • Selling, General, and Administrative Expenses (SG&A 8
  • Research and Development (R&D) 9
  • Operating Expenses 10
  • Earnings Before Interest and Taxes (EBIT 10
  • Interest Expense 11
  • Earnings Before Taxes (EBT) 11
  • Taxes 12
  • Net income 12
  • Tax Rate 13
  • Balance Sheet 14
  • Tesla’s Summarized Balance Sheets 14
  • Cash 14
  • Short-Term Investments 15
  • Accounts Receivables 16
  • Inventory 16
  • Current Assets 17
  • Property, Plant, and Equipment (PP&E) 18
  • Total Assets 19
  • Accounts Payable 20
  • Accrued Expenses 21
  • Short-Term Debt 21
  • Total Current Liabilities 22
  • Long Term Debt (LT Debt) 23
  • Total Liabilities 24
  • Common Stock and Additional Paid-in Capital 25
  • Treasury 26
  • Retained Earnings 27
  • Total Equity 27
  • Financial Ratios 29
  • Tesla’s Liquidity Ratios 30
  • Current Ratio 30
  • Quick Ratio 31
  • Cash Ratio 32
  • Tesla’s Asset Ratios 33
  • Total Asset Turnover 34
  • Fixed Asset Turnover 34
  • Days Sales Outstanding 35
  • Inventory Turnover 36
  • Accounts Receivable Turnover 37
  • Accounts Payable Turnover 38
  • Other Asset Ratio Calculations 38
  • Working Capital Turnover 38
  • Average Days in Inventory 39
  • Average Days Payable 39
  • Tesla’s Profitability Ratios 40
  • Return on Assets (ROA) 40
  • Return on Equity (ROE) 41
  • Net Profit Margin 42
  • Gross Profit Margin 43
  • Operating Profit Margin 43
  • Tesla’s Debt Ratios 45
  • Debt Ratio 45
  • Debt to Equity Ratio 46
  • Times Interest Earned 47

Tesla Financial Analysis and Report 2021

Contents

    • Disclaimer 3
    • Forward 4
    • Income Statement 6
    • Tesla’s Summarized Income Statements 7
    • Revenues 7
    • Cost of Goods Sold (COGS) 8
    • Selling, General, and Administrative Expenses (SG&A 9
    • Research and Development (R&D) 10
    • Operating Expenses 11
    • Earnings Before Interest and Taxes (EBIT 12
    • Interest Expense 13
    • Earnings Before Taxes (EBT) 14
    • Taxes 14
    • Net income 15
    • Tax Rate 15
    • Balance Sheet 17
    • Tesla’s Summarized Balance Sheets 17
    • Cash 19
    • Short-Term Investments 20
    • Accounts Receivables 20
    • Inventory 21
    • Current Assets 22
    • Property, Plant, and Equipment (PP&E) 23
    • Total Assets 24
    • Accounts Payable 25
    • Accrued Expenses 26
    • Short-Term Debt 27
    • Total Current Liabilities 28
    • Long Term Debt (LT Debt) 29
    • Total Liabilities 30
    • Common Stock and Additional Paid-in Capital 31
    • Treasury 32
    • Retained Earnings 33
    • Total Equity 33
    • Financial Ratios 35
    • Tesla’s Liquidity Ratios 36
    • Current Ratio 36
    • Cash Ratio 37
    • Quick Ratio 38
    • Tesla’s Asset Ratios 40
    • Total Asset Turnover 41
    • Fixed Asset Turnover 42
    • Days Sales Outstanding 43
    • Inventory Turnover 44
    • Accounts Receivable Turnover 45
    • Accounts Payable Turnover 46
    • Other Asset Ratio Calculations 47
    • Working Capital Turnover 47
    • Average Days in Inventory 47
    • Average Days Payable 48
    • Tesla’s Profitability Ratios 49
    • Return on Assets (ROA) 49
    • Return on Equity (ROE) 50
    • Net Profit Margin 51
    • Gross Profit Margin 52
    • Operating Profit Margin 53
    • Tesla’s Debt Ratios 55
    • Debt Ratio 55
    • Debt to Equity Ratio 56
    • Times Interest Earned 57
    • Summary 59
    • Tesla’s Strengths 59
    • Tesla’s Weaknesses 59
    • Tesla’s Final Grade 59

Sample Financial Report

Sample Financial Report by Paul Borosky, MBA.
Financial Report Sample 2

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

In this section, I walk through a broad definition of 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's important income statement line item trends from 2016 to 2020, in most cases.

Tesla Revenue Growth.

In the last five years, Tesla’s revenues have grown annually, on average, at a 49% rate.  For a multinational organization, this annual growth rate is astounding.  However, a concerning trend for the organization’s revenue growth rate is that it has been haphazard.  For example, between 2017 and 2018, the firm’s growth rate was 82.5%.  Also, between 2020 and 2021, the organization’s growth rate was 70.7%.  However, from 2018 to 2019, the firm’s growth rate was only 14.5%.  A better strategy would be for the organization to implement operational strategies to ensure consistent revenue growth year over year.

Analyst Grade: A

Tesla 2021 Summarized Income Statement

Column1

2021

2020 2019 2018

2017

Revenues

                   53,823

                   31,536                    24,578                    21,461

                     11,758

COGS

                   40,217

                   24,906                    20,509                    17,419

                       9,536

Gross Profit

                   13,606

                     6,630                      4,069                      4,042

                       2,222

 
SG&A

                     4,517

                     3,145                      2,646                      2,835

                       2,477

Depreciation

                     2,911

                     2,322                      2,154                      1,901

                       1,636

R & D

                     2,593

                     1,491                      1,343                      1,460

                       1,378

Other
Total Operating Expenses

                     7,083

                     4,636                      4,138                      4,430

                       3,855

EBIT

                     6,523

                     1,994                          (69)                        (388)

                     (1,632)

Other Income
Interest Expense

                        371

                        748                         685                         663

                          471

EBT

                     6,343

                     1,154                        (665)                     (1,005)

                     (2,209)

Taxes

                        699

                        292                         110                           58

                            32

Net Income

                    5,644

                       862                       (775)                   (1,063)

                    (2,241)

 

Section 2: Tesla Balance Sheet Analyzed

For Tesla's balance sheet, I again go through each important line item from the balance sheet.  In reviewing each line item, I will define their balance sheets line items, such as cash, property, plant and equipment, and liabilities.  Next, I then offer a summary analysis of their important balance sheet line items.

Tesla Cash.

Tesla’s cash position ended 2017 at $3.3 billion.  In the next two years, the organization’s cash balance would increase moderately, ending 2019 at $6.2 billion.  However, in the next year, the firm’s cash position would balloon to $19.3 billion.  This cash increase may be due to the onset of the COVID-19 pandemic and the organization’s wish to have a substantial cash buffer through the pandemic.  However, the organization’s cash balance remained elevated in 2021, ending the year at $17.5 billion. 

A better strategy would be for the firm to divest some of the cash into short-term investments or reinvest the funds into operational growth opportunities.  In my opinion, this shows the mismanagement of short-term assets.

Analyst Grade: C

Tesla 2021 Summary Balance Sheet

Column1

2021

2020 2019 2018

2017

Cash

                     17,576

                 19,384                    6,268                    3,686

                   3,367

Short Term Investment

                          131

                        -                         -                         -

                        -

Account Receivable

                       1,913

                   1,886                    1,324                       949

                      515

Inventory

                       5,757

                   4,101                    3,552                    3,113

                   2,263

Other
Current Assets

                   27,100

               26,717                12,103                  8,307

                 6,570

Net PPE

                     18,884

                 12,747                  10,396                  11,330

                 10,027

Goodwill

                          200

                      207                       198                         68

                        60

Other
Total Assets

                   62,131

               52,148                34,309                29,740

               28,655

Accounts Payable

                     10,025

                   6,051                    3,771                    3,405

                   2,390

Accrued Expense

                       5,719

                   3,855                    2,905                    2,094

                   1,731

Accrued Taxes
Notes Payable
LT Debt - Current

                       1,589

                   2,132                    1,785                    2,568

                   9,415

Other
Total Current Liabilities

                     19,705

                 14,248                  10,667                    9,993

                   7,674

LT Debt

                       5,245

                   9,556                  11,634                    9,404

                   9,415

Other
Total Liabilities

                   30,548

               28,418                26,199                23,427

               23,022

Common Stock

                     29,803

                 27,260                  12,737                  10,249

                   9,178

Treasury
Retained Earnings

                          331

                 (5,399)                  (6,083)                  (5,318)

                 (4,974)

Other
Total Equity

                   30,189

               22,225                  6,618                  4,923

                 4,237

Total Equity & Liability

                   62,131

               52,148                34,309                29,740

               28,655

 

Section 3: Tesla Financial Ratios Analyzed

For this section, I have chosen several different financial ratios to review for Tesla.  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 in 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's Liquidity Ratios

Ratios 2021 2020
Current Ratio                           1.38                    1.88
Cash Ratio                           0.90                    1.36
Quick Ratio                           1.08                    1.59
Net Working Capital                         7,395                12,469

Tesla's Asset Utilization

Ratios 2021 2020
Total Asset Turnover                           0.87                    0.60
Fixed Asset Turnover                           2.85                    2.47
Days Sales Outstanding                         12.88                  18.58
Inventory Turnover (Using Sales)                         10.92                    8.24
Inventory Turnover (Using COGS)                           8.16                    6.51
Accounts Receivable Turnover                         28.34                  19.65
Working Capital Turnover                           7.28                    2.53
AP Turnover                           5.21                    5.18
Average Days Inventory                         44.73                  56.08
Average Days Payable                         70.07                  70.42

Tesla's Profitability Ratios

Ratios 2021 2020
Return on Assets 9.08% 1.65%
Return on Equity 18.70% 3.88%
Net Profit Margin 10.49% 2.73%
Gross Profit Margin 25.28% 21.02%
Operating Profit Margin 12.12% 6.32%
Basic Earning Power 10.50% 3.82%
ROCE 15.38% 5.26%
Capital Employed                       42,426                37,900
ROIC 15.68% 4.39%

Tesla's Debt Ratios

Ratios 2021 2020
Debt Ratio 11.00% 22.41%
Debt/Equity 22.64% 52.59%
Times Interest Earned                         17.58                    2.67