The review of the Net Profit Margin showed a fluctuating trend, with an improvement from 2.73% in 2020 to 7.32% in 2024.
Additionally, the average EBIT Margin over the period analysed was 10.56%.
In the current year, Tesla’s ability to cover its interest liabilities increased significantly, reaching 20.22 times compared to just 2.67 times in 2020.
Moreover, the Asset Turnover improved from 0.60 times in 2020 to 0.80 times in 2024, indicating a reasonable utilization of the company’s assets in relation to its revenue.
Profitability
Tesla’s revenue has varied from year to year. It increased by 70.7% from 2020 to 2021 and later saw an additional increase of 18.8% between 2022 and 2023. However, there was a decline of 19.4% from 2023 to 2024, which is the current reporting period.
In terms of profitability, Tesla’s performance appears solid, with a strong return on capital employed during the analysis period.
Liquidity
The company’s liquidity results are strong, with the current ratio increasing from 1.73:1 to 2.02:1 over the past year. This indicates that the company has sufficient current assets to cover its current liabilities.
Capital Structure
Tesla is financed through both equity and debt. The debt-to-equity (D/E) ratio has varied year over year. The company’s gearing position appears moderate, standing at 66% this year.
