Tesla

Key Performance Metrics

  • The review of Net Profit Margin witnessed a declining/surging trend. The Net Profit Margin improved from -19.06% in 2017 to 10.49% in 2021.
  • The average EBIT Margin for the period under analysis was 4.49%, with 2017 and 2021 performing the worst and best, respectively.
  • In the current year, Tesla was able to cover its interest liabilities 17.58 times in the current year- compared to 2017 when it was 0 times.
  • The Asset turnover stood at 1.03 times in 2021 from 0.41 in 2017, implying a high performance or Assets of the business in relation to revenue.

Profitability

  • The revenue of Tesla has increased year on year. The revenue increased by 83% between 2017 and 2018 and a further 15% increase was recorded between 2018 and 2019. There also occurred an increase of 71% between 2020 and 2021 (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 strong, as current ratio/acid test increased from 1.38:1/1.08:1 to 1.88:1/1.59:1 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 high as it stood at 120% in the current year.

Source: Tesla Annual Report

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