The review of Net Profit Marginwitnessed a fluctuating trend. The Net Profit Margin moved from –3.51% in 2019 to 15.50% in 2023.
The average EBIT Margin for the period under analysis was 9.01%, with 2019 and 2022performing the worst and best, respectively.
In the current year, TESLA was able to cover its interest liabilities 65.08 times – compared to 2019 when it was –0.10 times.
The Asset turnover stood at1.02 times in 2023 from 0.77in 2019,implying a high performance on Assets of the business in relation to revenue.
Profitability
The revenue of TESLA has fluctuatedyear on year. The revenue increased by 28.31% between 2019 and 2020 and a further 51.35% increase was recorded between 2021 and 2022. There also occurred anincrease of 18.80% between 2022 and 2023 (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 1.53:1 to 1.73:1 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 increasing year on year. The gearing position of the company appears to be low as it stood at 8% in the current year.
