Please solve the following ratios for Tesla for 2015, 2016, 2017. Plese identify

Question

Please solve the following ratios for Tesla for 2015, 2016, 2017. Plese identify if the ratio increase or decressing is good for company, Tesla.

Current Ratio

Quick Ratio

Total Debt Ratio

Debt Equity Ratio

Equity Multiplier

Times Interest Earned Ratio

STOCK INFOMATION

Open High Low Close* Adj Close** Volume

3,777,200

4,035,900

Tesla, Inc. (TSLA)

Balence Sheet /// All Number in Thousand Tesla, Inc. (TSLA)

Dec 31, 2017 316.18 316.41 310.00 311.35 311.35

3,777,200

Income Statement Al numbers in thousands Revenue Total Revenue Cost of Revenue Gross Profit 12/31/2017 11,758,751 9,536,264 2,222,487 12/31/2016 7,000,132 5,400,875 1,599,257 12/31/2015 4,046,025 3,122,522 923,503 12/31/2014 3,198,356 2,316,685 881,671 Operating Expenses Research Development Selling General and Administrative Non Recurring 1,378,073 834,408 717,900 464,700 2,450,700 1,410,489 922,232 603,660 Others Total Operating Expenses Operating Income or Loss 13,365,037 7,645,772 4,762,654 3,385,045 1,606,286 -645,640 716,629 186,689

Explanation / Answer

Both Current ratio and Quick Ratio should be 1 or more to make the company more liquid. Howevr, they have declined in 2017 and the company should increase its liquidity profile by increasing its current assets.

Debt ratio and Debt to Equity Ratio has also increased and is high which means the company is highly leveraged. Equity Multiplier has also increased from FY2016, though less than FY2015 it is high indicating a highly leveraged firm. Debt Services is high, since EBITDA for the company is highly negative with Times interest earned negative as well it means it will be difficult for the company to service its debt.

Parameters 2017 2016 2015 Total Current Asset 6570520 6259796 2782006 Inventory 2263537 2067454 1277838 Total Current Liabilities 7674740 5835789 2858320 long term debt 8896914 6053860 2021093 Current Debt 12115948 8588115 2898994 Total liabilities 23023050 16758951 6984235 Total Asset 28655372 22664076 8067939 Total Shareholder's Equity 4237242 4752911 1083704 EBIT -1606286 -645640 -716629 Interest 471259 191810 118851 Current Ratio = Current Assets/Current Liabilities 0.86 1.07 0.97 Quick Ratio = (Total Current Asset- Inventory)/Total Current Liabilities 0.56 0.72 0.53 Total Debt Ratio (Long term Debt+Short Term debt)/Total Assets 0.73 0.65 0.61 Debt Equity ratio (Long Term Debt+Short Term Debt)/Shareholders Equity 4.96 3.08 4.54 Equity Multiplier (Total Asset/Shareholder's Equity) 6.76 4.77 7.44 Times Interest Earned (EBIT/Interest) -3.41 -3.37 -6.03

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