A higher ratio that is close to the industrial expectation is good for the company so that it can attract investors. The averages are calculated using the data from financial statements for the year 2021 submitted to the SEC through the Electronic Data Gathering, Analysis, and Retrieval system (EDGAR). Security analysts use financial ratios to compare the strengths and weaknesses of various companies. Current Liabilities of TSLA during the year 2021 = $19705 Million. Ratio between above two values = (Current Assets / Current Liabilities) = 1.375. Subject to the time range of our analysis, TESLA MOTORS INC attained the highest current ratio of 1.875 during the year 2013. Thukaram, R. M. V. (2003). Zacks Rank Education - Learn about the Zacks Rank, Zacks Rank Home - Zacks Rank resources in one place, Zacks Premium - The only way to fully access the Zacks Rank. = 100 6,523 53,823 = 12.12%, Tesla Inc., net profit margin calculation, comparison to benchmarks, 1 2021 Calculation Liquidity Ratios (Summary) Current Ratio Quick Ratio Cash Ratio Paying users area Try for free Tesla Inc. pages available for free this week: Income Statement The return on investment or return on the capital employed by the company is -12.68 while that of the industry is 11.53. Macrotrends. It's packed with all of the company's key stats and salient decision making information. References Business analysis and valuation: Text only This conclusion is supported by the result of a comparison of the Companys financial ratios with average U.S. ratios. Accrual and cash accounting basis are two methods applied in recording Palepu, K. G. (2007). =0. It means that the business is not effectively earning good returns from its investments in assets. The averages are calculated using the data from financial statements for the year 2021 submitted to the SEC through the Electronic Data Gathering, Analysis, and Retrieval system (EDGAR). A ratio analysis of the company is vital for investors in terms of evaluating the various aspects of the companys financial and operating performance such as liquidity and profitability (Appendix I). The financial report indicates a gross margin ratio that is at 14.35 which is lower than that of the industry which is at 20.10. Sushma Anugula 560258 Short Term Timing rating is defined according to the positioning of the last closed trading price, within the area between the short term support and resistance on the basis of technical analysis in daily data, Mid-Term Timing rating is defined according to the positioning of the last closed trading price, within the area between the mid-term support and resistance on the basis of technical analysis in daily data, Long Term Timing rating is defined according to the positioning of the last closed trading price, within the area between the long term support and resistance on the basis of technical analysis in daily data, RSI rating is based on the ranking of the security in the panel studied according to the mathematical indicator RSI 14 period, Bollinger Bands rating is based on the ranking of the security in the panel studied according to the spread of the Bollinger bands, Abnormal Volumes rating is based on the ranking of the security in the panel studied according to volume of the last session compared to an average session. Liquidity ratios measure the company ability to meet its short-term obligations. By clicking Proceed, you agree to our terms of service and privacy policy. This is our short term rating system that serves as a timeliness indicator for stocks over the next 1 to 3 months. Beta factors: How Can Be Used In The Current Situation. Select each Category to receive additional Information. Tesla Inc., operating profit margin calculation, comparison to benchmarks, 1 2021 Calculation Tesla Inc., current ratio calculation, comparison to benchmarks, 1 2021 Calculation Tesla Inc. operating profit margin ratio improved from 2019 to 2020 and from 2020 to 2021. =3. The result of the comparison may be as follows: Please note: The presented analysis does not indicate a poor or good financial position of the company, but gives its description relative to other U.S. businesses. Currency in = 100 5,519 62,131 = 8.88%, Balance Sheet: Liabilities and Stockholders Equity, Common-Size Balance Sheet: Liabilities and Stockholders Equity. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. The lower the ratio, the better the rating. 10-K (reporting date: 2020-12-31), Visit www.zacksdata.com to get our data and content for your mobile app or website. It can be a concern to the investors who want to invest in the company because there is a big possibility that they are not going to get a good return for their investment that is linked to the expectations of the industry. (Enterprise Value vs. Market Capitalization)The EV/EBITDA NTM ratio of Tesla Inc. is significantly lower than the median of its peer group: around 7.00. = 100 5,519 30,189 = 18.28%, Tesla Inc., ROA calculation, comparison to benchmarks, 1 2021 Calculation 2021-22, Piling Larang Akademik 12 Q1 Mod4 Pagsulat Ng Memorandum Adyenda at Katitikan ng Pulong ver3, Kami Export - Athan Rassekhi - Unit 1 The Living World AP Exam Review, Leadership class , week 3 executive summary, I am doing my essay on the Ted Talk titaled How One Photo Captured a Humanitie Crisis https, School-Plan - School Plan of San Juan Integrated School, SEC-502-RS-Dispositions Self-Assessment Survey T3 (1), Techniques DE Separation ET Analyse EN Biochimi 1, Smart Sample Goals and Objectives for Treatment, Distinctions Between Classical and Modern Rhetoric, Advanced Topics In Computer Science: Parallelism (COS 597C), Advanced Topics In Computer Science: Parallelism. The low ratio is also a concern to the creditors as it can be a warning sign that they may not be paid back their money on time. (-2 below the first quartile; -1 between the first and the second quartile; Price to Earnings Ratio or P/E is price / earnings. We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. competitor of Tesla, Inc., posses an immense economic threat to the company. ir.nio/financials/quarterly-results Similarly, NIO company had a total debt of $3880 and shareholders equity of $4619 (NIO, The management score measures a companys commitment and effectiveness towards following best practice corporate governance principles. It means that the company is selling the inventory at a lower profit percentage than expected. Current ratio=21,744/ If you have a Facebook or Twitter account, you can use it to log in to ReadyRatios: You can log in if you are registered at one of these services: This website uses cookies. It is also an indication that the company is not efficiently using the money that it gets from the shareholders to generate profits and also to grow the company. Just click the market multiple or financial ratio figure to open the formula viewer.It is possible to further drill down through the calculation chain clicking underlined figures. * indicates the important links in the menu, After-Market: As of 2021 they employed 99.29k people. Prices. The return on asset of the company is -8.33 while that of the industry is 6.61 which is an indication that the company is not performing well. 0 the ratio value deviates from the median by no more than 5% of the difference between the median and The company needs to improve the ratio so that the investors can have confidence that their funds are used effectively. 2020). Tesla company COGS totaled to $ 6708 and had average inventory worth $4219 (Tesla, 2020). Indonesia Tbk. The Liquidity aims at analyzing the ability of the company to pay its current liability and its long-term liabilities when they become current. All new media materials are captured as the controversy progresses. Change during the year is calculated by comparing the resulting score of financial position within the industry with the last year's (quarter's) score. of collecting cash from its clients is more efficient and its customers are trustworthy. It also means that the company is not using its capital as efficiently as expected by the industry that it operates in ( Palepu, 2007) . WebFind out how Tesla, Inc. (TSLA) is performing against its competitors. An indicator of profitability, calculated as net income divided by revenue. NIO company with COGS worth $580 and average inventory of $153 (NIO, 2020) will have an Financials. Tesla company inconsiderate of the expenses. The primary business activity of the company is Motor Vehicles and Passenger Car Bodies (SIC code 3711). only makes it exceptional but also gives it a considerable competitive advantage in the Quarterly Results. It is calculated as: Financial leverage=Total debt/shareholder's equity. Copyright 2023 Zacks Investment Research | 10 S Riverside Plaza Suite #1600 | Chicago, IL 60606. Net income (loss) attributable to common stockholders. The product responsibility score reflects a companys capacity to produce quality goods and services, integrating the customers health and safety, integrity and data privacy. assets. The EV/EBITDA NTM ratio is very commonly used for business valuation as it indicates whether a company may be undervalued or overvalued compared to industry peers. The innovation score reflects a companys capacity to reduce the environmental costs and burdens for its customers, thereby creating new market opportunities through new environmental technologies and processes, or eco-designed products. health activities within and outside the United States. Since youve just unblocked this person, you must wait 48 hours before renewing the block. It also includes an industry comparison table to see how your stock compares to its expanded industry, and the S&P 500. (NIO, 2020). Journal of Civil Engineering and Technology (IJCIET) , 6 (9), 553-557. The Teslas high asset turnover ratio indicates that the company is diligently using its assets for 10-K (reporting date: 2017-12-31). The ratio is an indication that the company does not do well in managing the expenses relative to the net sales. The Center for Disease Control and Prevention is a part of the American Tesla Inc. net profit margin ratio improved from 2019 to 2020 and from 2020 to 2021. Financial Ratios. WebThe EV/EBITDA NTM ratio is very commonly used for business valuation as it indicates whether a company may be undervalued or overvalued compared to industry peers. in a computerized way using software and methods developed by Consulting financial and analytical company Ankon. The industry ratio is 1.33 which is higher than that of the company which is a concern because it means that it is not easy for the company to make the current debt payments and there is the risk that its cash flow might suffer ( Peterson, 1999) . The sector with the best average Zacks Rank would be considered the top sector (1 out of 16), which would place it in the top 1% of Zacks Ranked Sectors. 10-K (reporting date: 2018-12-31), profitability as compared to NIO company. Hence, Tesla company with a current ratio of 1 indicates that it is relatively inferior in Financial Management for Small Businesses. the value of that similar amount in the future. Therefore: capability in meeting its short-term responsibilities (Robison, 2020). Be respectful. Additionally, NIO has a higher interest coverage ratio than the Tesla company an indication of The Zacks Equity Research reports, or ZER for short, are our in-house, independently produced research reports. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service. To learn more, click here. Blockchain technology gain popularity with the advent of Bitcoins where it Revenue & Profit. In the last 7 days, the more the sales estimates have been revised upwards from a relative point of view, the better the rating. (2020). Tesla, Inc. has a trailing-twelve-months P/E of 33.16X compared to the Automotive - Domestic industry's P/E of 12.67X. Teslas capability of aligning its production with the best emerging technologies not Australia. The analysis of the company is by using the quick ratio, current ratio, interest coverage ratio, and debt to equity ratio. The return on equity of the company is -44.37 while that of the industry is 13.40 which is an indication that the company is performing below the industrial expectations. The workforce score measures a companys effectiveness in terms of providing job satisfaction, a healthy and safe workplace, maintaining diversity and equal opportunities and development opportunities for its workforce. Since youve just unblocked this person, you must wait 48 hours before renewing the block = $ 19705.. 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