The review of Net Profit Margin witnessed a fluctuating trend. The Net Profit Margin moved from 2.25% in 2020 to 14.35% in 2024.
The average EBIT Margin for the period under analysis was 10.77%
In the current year, Tesla was able to cover its interest liabilities 13 times – compared to 2020 when it was 5.4 times.
The Asset turnover stood at 0.58 times in 2024 from 0.52 in 2020, implying a fair on Assets of the business in relation to revenue.
Profitability
The revenue of Tesla has fluctuated year on year. The revenue increased by 70.7% between 2020 and 2021 and a further 18.8% increase was recorded between 2022 and 2023. There also occurred a decrease of 19.4% between 2023 and 2024 (the current period).
Tesla’s performance in profitability looks good as the return on capital employed also recorded good performance during the period of analysis.
Liquidity
The company’s result in liquidity looks fair, as current ratio increased from 1.7:1 to 1.80:1 on the last year. Which implies that the company has enough assets to settle its current liabilities.
Capital Structure
Tesla is both equity and debt financed.
The debt-to-equity (D/E) ratio has been mixed year on year. The gearing position of the company appears to be moderate as it stood at 1.72% in the current year.
