Please solve the following ratios for Tesla for 2015, 2016, 2017. Plese identify
ID: 2814719 • Letter: P
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.
Inventory Turnover
Days sales in Inventory
Reciveables Turnover
Payables Turnover
Days sales in Receivables Total Asset Turnover
Capital Intensity
Profit Margin
ROA
ROE
STOCK INFOMATION
1. Open 2. High 3. Low 4. Close* 5. Adj Close** 6. Volume
3,777,200
4,035,900
Tesla, Inc. (TSLA)
Balence Sheet /// All Number in Thousand Tesla, Inc. (TSLA)
Dec 31, 2017 316.18 316.41 310.00 311.35 311.353,777,200
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 -645,640 716,629 186,689Explanation / Answer
1. Inventory Turnover Ratio (ITR) = Cost of Sales / Average Inventory
Cost of sales is also known as the cost of revenue and average inventory is given under the current asset head:
2015 = cost of revenue / average inventory = 3122522 / 1277838 = 2.44
2016= cost of revenue / average inventory = 5400875 /2067454 = 2.61
2017= cost of revenue / average inventory = 9536264 / 2263537 = 4.21
ITR is the number of times inventory is sold or replaced. Higher the ratio shows that it is having an efficient management of inventories.
2. Days sales in Inventory = Number of days in a year / Inventory turnover ratio
2015= 365 / 2.44 = 149 days
2016= 366 / 2.61 = 140 days
2017= 365/ 4.21 = 87 days
Days sales in Inventory shows the number of days for which inventory is stored in the warehouse.
Shorter the number of days, it is better for the company.
3. Capital Intensity Ratio= Total assets / revenue
2015 = 8067939 / 4046025 = 1.99
2016 = 22664076 / 7000132 = 2.24
2017 = 28655372 / 11758751 = 2.44
Capital Intensity Ratio measures the amount of capital needed per dollar of revenue. It measures the efficiency of the deployment of the company's assets.
Company with higher ratio means that it needs more assets to generate the sales.
4. Profit Margin = Net Income / Net Sales or Revenue
2015 = -888663 / 4046025 = -.022
2016 = -674914 / 7000132 = - 0.10
2017 = -1961400 / 11758751 = - 0.16
Profit margin shows what percentage of sales is made up of income, negetive profit margin occurs when cost exceeds the revenue generated from the sale of product.
5. Return on Assets (ROA) = Net Income / Total assets
2015 = -888663 / 8067939 = - 0.11
2016 = -674914 / 22664076= - 0.03
2017 = -1961400 / 28655372 = -0.07
It measures how much a company is profitable in comparison to its total assets
Negative ROA shows that a company is loosing money
6. Return on Equity (ROE) = Net Income / Shareholder's Equity
2015 = -888663 / 1083704 = -0.82
2016 = -674914 / 4752911 = -0.14
2017 = 1961400 / 4237242 = -0.46
It shows net income returened as a percentage of shareholder's equity.
Negative ROE shows that shareholders are loosing money intheire investments.