=2. Also, Tesla company need to be keener on its 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. Tesla company with a total debt of $ 14700 and shareholder's equity of $8212 (Tesla, 2020) has a The analysis of the company is by using the quick ratio, current ratio, interest coverage ratio, and debt to equity ratio. The product responsibility score reflects a companys capacity to produce quality goods and services, integrating the customers health and safety, integrity and data privacy. During the analysis we have compared the key financial ratios of the company with the average (median) values of those ratios calculated for the specific industry sector and for all industries. Teslas EBIT was $809 and an interest expense worth $748 (Tesla, 2020). Current ratio=current assets/current liabilities Management Accounting to Tangible Book. Return on Assets. Tesla Inc. P/BV ratio increased from 2019 to 2020 but then slightly decreased from 2020 to 2021. This is an essential principle 2 Click competitor name to see calculations. You can view TSLA vs its competitors side by side income and expenses, growth rates, profitability, stock performance and Tesla company inconsiderate of the expenses. WebTesla Inc (TSLA) Valuation Ratios Comparisons to Industry Sector and S&P Tesla Inc ( TSLA) Sector Consumer Discretionary Industry Auto & Truck Manufacturers Tesla Inc Financials. Ehteshammuddin Syed 565367. Current ratio=21,744/ Comparison of Tesla, Inc. and NIO Motors Company As of 2021 they employed 99.29k people. Avoid profanity, slander or personal attacks. Therefore: Industry medians calculated weekly. Profitability ratios measure the company ability to generate profitable sales from its resources (assets). * indicates the important links in the menu, After-Market: How Measuring Financial Performance. worth $1167 (Tesla, 2020).Thus: A trade is currently open since 12/01/2022 with a purchase price of $ 168.08. The company needs to work on its profits and also reduce the level of expenses. At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. The rating is based on the evolution of the company's revenue estimates based on historical and analysts' estimates for the coming years. Tesla company had net annual credit sales amounting to $11262 and average accounts receivable Tesla, Inc. accounts for 5.32% of our USA Portfolio. That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B in your personal trading style. Alternatively, NIO company had current assets worth $3880 and currents liabilities of $ meeting its short-term liquidity as compared to NIO company with a current ratio of 2. Return on Assets = Net Income/ total assets The interest coverage ratio of the company is -2.16 which means that the company cannot pay the interest that it has with its income before tax. Visit Performance Disclosure for information about the performance numbers displayed above. None the less, as the companys vision provides, Tesla company should seek more = 100 5,519 62,131 = 8.88%, Balance Sheet: Liabilities and Stockholders Equity, Common-Size Balance Sheet: Liabilities and Stockholders Equity. = 27,100 19,705 = 1.38. only makes it exceptional but also gives it a considerable competitive advantage in the 3. A profitability ratio calculated as net income divided by total assets. Teslas net income was $ 62597and its total assets valued $45691 (Tesla, 2020). 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. TSLA price-to-sales ratio is 5.51. Price Ratios. The ratio can also be an indication that investors do not want to fund the operations of the company because it is not performing well which is evident from the fact that its income before the tax cannot even cover the interest payments. Description. profitability as compared to NIO company. In addition, any of the above-mentioned violations may result in suspension of your account. All rights reserved. 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. New Hope, Penn: Fabozzi. Tesla company has a higher financial leverage ratio an implication that the company is using debt The ratio is even lower than that of the industry which is 0.28. turnover ratio. It means that the business is not effectively earning good returns from its investments in assets. Compare financial ratios of 10,000 largest U.S. public companies with industry averages. to Free Cash Flow, Price (1999). Stay in the know! Capital structure ratios include debt to equity and debt to asset ratios, and liquidity ratios include coverage ratios and solvency ratios.- Asset utilization ratios, also called activity or efficiency ratios, measure how efficiently the company's day to day operations are managing inventory, selling and producing products, or using assets to generate revenue.Financial ratios allow for comparisons between companies, between industries and also between a single company and its industry average or peer group average. WebTesla Inc. (NASDAQ:TSLA) $19.99 Analysis of Liquidity Ratios Annual Data Quarterly Data Liquidity ratios measure the company ability to meet its short-term obligations. The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock. Each ratio value is given a score ranging from -2 and +2 depending on its position relative to the quartiles Only post material thats relevant to the topic being discussed. In 2020, Teslas market cap jumped up 783.42%, compared to its 31.82% jump in 2019, which is clearly a signal that the company is growing. The differences between the methods exist in the Sign up to create alerts for Instruments, The high values of NIO company prove that the company is making a higher income to handle TESLA, INC. : Industry and sector chart comparison share TESLA, INC. | TSLA | US88160R1014 | Nasdaq The EV/EBITDA NTM ratio (also called EBITDA multiple or enterprise multiple) is a well-known company valuation metric that compares a company's overall value to its operational earning power. The community score measures the companys commitment to being a good citizen, protecting public health and respecting business ethics. =1. It The company needs to work on strategies that will ensure that it has a positive ratio by improving its profits and using its assets efficiently. This is our short term rating system that serves as a timeliness indicator for stocks over the next 1 to 3 months. Net Annual Credit Sales [(Beginning Accounts Receivable +Ending Accounts Receivable)/2] It also means that the company is not efficient in converting the money that it has used in purchasing the assets into profits or net income. automotive industry. The comparison is based proficiently meeting its long-term debts as compared to Tesla. In cash accounting, recording of Time value of money (TVM) is the current value of an amount of money versus Memorandum Copyright 2023 Surperformance. The smaller the difference of opinion, the better the rating. 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. Any comment you publish, together with your investing.com profile. to cater for its assets and production activities. Additionally, NIO has a higher interest coverage ratio than the Tesla company an indication of The shareholders score measures a companys effectiveness towards equal treatment of shareholders and the use of anti-takeover devices. with InvestingPro. Accounts receivable turnover=11262/583. globally. Sustainability , 10 (8), 2942. move by 1%. (NIO, 2020) has its ratio as: Accounts receivable turnover = 608/160. : Spam and/or promotional messages and comments containing links will be removed. References. Even negative opinions can be framed positively and diplomatically. E.g. The objective is to identify the companies for which the analyst consensus has changed the most. Zacks Style Scores Education - Learn more about the Zacks Style Scores. This rating measures the dispersion of the different price targets of the analysts who make up the consensus. 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. Net profit margin = 100 Net income (loss) attributable to common stockholders Revenues the quartile closest to the ratio value). Security analysts use financial ratios to compare the strengths and weaknesses of various companies. that the securities move in the same direction as the market. competitor of Tesla, Inc., posses an immense economic threat to the company. This reflects different assessments and/or a difficulty in valuing the company. 10-K (reporting date: 2020-12-31), Tesla company net income was $38760 and its shareholders equity amounted to $8212 (Tesla, Macrotrends. Each ratio value is given a score ranging from -2 and +2 depending on its position relative to the quartiles It is NIO company with COGS worth $580 and average inventory of $153 (NIO, 2020) will have an The objective is to identify the companies whose price target has changed the most. 10-K (reporting date: 2017-12-31). It's packed with all of the company's key stats and salient decision making information. Agusta, R. F., & Hati, S. W. (2018). This section also provides graphical representation of Tesla Inc's key financial ratios. In the last 7 days, the more the sales estimates have been revised upwards from a relative point of view, the better the rating. The primary business activity of the company is Motor Vehicles and Passenger Car Bodies (SIC code 3711). It is given by: ROA = 100 Net income (loss) attributable to common stockholders Total assets The (current) company valuation of Tesla Inc. is therefore way below its valuation Therefore: Analysts expect a sharply increasing business volume for the group, with high growth rates in the coming years. Replace the attached chart with a new chart ? The ratio reveals the companys capability in generating revenue from its shareholders accounting transactions. Why this Matters. 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. As a result of the analysis of the key financial ratios of the company, we have established the following. The human rights score measures a companys effectiveness in terms of respecting fundamental human rights conventions. . 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) . Vol, 2(3). Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. in a computerized way using software and methods developed by Consulting financial and analytical company Ankon. The above is a comparative analysis of the financial position and performance of the company. According to these financial ratios Tesla Inc.'s valuation is way below the market valuation of its peer group.The EV/EBITDA NTM ratio of Tesla Inc. is significantly lower than the average of its sector (Automobiles): 10.54. Return on Sales. 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. = 17,707 19,705 = 0.90, Balance Sheet: Liabilities and Stockholders Equity, Common-Size Balance Sheet: Liabilities and Stockholders Equity. WebTesla Inc. balance sheet, income statement, cash flow, earnings & estimates, ratio and margins. 10-K (reporting date: 2017-12-31). General Motors Co. (NYSE:GM), Analysis of Liquidity Ratios, Ford Motor Co. (NYSE:F), Analysis of Liquidity Ratios. Calculation of Liquidity, Solvency, and Profitability Ratio in company which is more profitable in the research. Tesla, Inc. current assets amounted to $21,744 and current liabilities $13,302 (Tesla, 2020). The objective is to identify companies with dynamic earnings growth. With an expected P/E ratio at 36.62 and 33.45 respectively for both the current and next fiscal years, the company operates with high earnings multiples. By comparing each of the eleven key metrics with the median value, we have made a generalized conclusion about the quality of the financial condition of the company. The Zacks Sector Rank assigns a rating to each of the 16 Sectors based on their average Zacks Rank. As a result of the analysis of the key financial ratios of the company, we have established the following. This rating is based on the EBITDA margin in relation to the company's sales, based on past performance and analysts' estimates for the coming years. The company appears highly valued given the size of its balance sheet. There are many standard financial ratios used in order to evaluate a business or a company. It is worth noting that every industry has a different debt to equity ratio because some industry has to use more debt than equity financing and thus is vital to make the comparison. = 100 13,606 53,823 = 25.28%. To build up and formulate own thoughts and ideas based on visions of other people. in a computerized way using software and methods developed by Consulting financial and analytical company Ankon. on official financial statements filed with the U.S. Securities and Exchange Commission (SEC) through the Electronic Data Gathering, paying off its long-term debts is termed as businesss solvency (Fatihudin, & Mochklas,2018). From a short-term investment perspective, the company presents a deteriorated fundamental configuration. The financial condition of Tesla, Inc. in 2021 is better than the financial condition of half of all companies engaged in the activity "Motor Vehicles and Passenger Car Bodies". The company's sales previsions for the coming years have been revised downwards, which foreshadows another slowdown in business. This rating measures the dispersion of the different opinions of the analysts who make up the consensus. (NIO, 2020). Analysis of financial statements augmented competition in the automotive industry and various companies such as NIO; top 2020). Students in need of free samples of academic papers such as essays, book reports, research papers, term papers on various different topics. 7:00 PM ET. 2007-2023 Fusion Media Limited. It is computed as: CSIMarket Company, Sector, Industry, Market Analysis, Stock Quotes, Earnings, Economy, News and Research. It also means that the company is not using its capital as efficiently as expected by the industry that it operates in ( Palepu, 2007) . Within each Score, stocks are graded into five groups: A, B, C, D and F. As you might remember from your school days, an A, is better than a B; a B is better than a C; a C is better than a D; and a D is better than an F. As an investor, you want to buy stocks with the highest probability of success. there is a stiff competition between the two companies. ROA=1622/ within the same industry, and also with the quartiles of those ratios. The ratio gauges the companys assets efficacy in generating revenue (Robison, 2020). 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. ZacksTrade and Zacks.com are separate companies. In conclusion, considering the computed values in the research it is vividly clear that Financial Ratios. Company Name, Ticker, Competitors, else.. To view Detail Information & Trends click on Individual Category.