WebTesla Inc. (NASDAQ:TSLA) $19.99 Analysis of Profitability Ratios Annual Data Quarterly Data Profitability ratios measure the company ability to generate profitable sales from its Thus: How good is it? Discover details on Tesla Incs annual and quarterly financial performance covering key metrics like revenue, net income, growth ratios, equity ratios, profitability ratios, cost ratios, liquidity ratios, leverage ratios and so on. A liquidity ratio calculated as current assets divided by current liabilities. Journal of Applied Accounting and Taxation , 1 (1), 52-58. Retrieved from Reuters: https://www.reuters.com/finance/stocks/financial-highlights/TSLA.O. This rating is based on the ratio of the company's share price to its book value, based on past performance and analysts' estimates for the coming years. Sustainability , 10 (8), 2942. move by 1%. Racism, sexism and other forms of discrimination will not be tolerated. The Zacks Equity Research reports, or ZER for short, are our in-house, independently produced research reports. opportunities to further expand their product line worldwide for increased profitability. The resource use score reflects a companys performance and capacity to reduce the use of materials, energy or water, and to find more eco-efficient solutions by improving supply chain management. The total debt to equity ratio of the company is 297.37 while that of the industry is 72.64. The analysis of the company is by using the quick ratio, current ratio, interest coverage ratio, and debt to equity ratio. 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 Style Scores are a complementary set of indicators to use alongside the Zacks Rank. Financial ratios are generally ratios of selected values on an enterprise's financial statements. Sainath Badaam 560634 A financial ratio is essentially as simple as it sounds: a ratio of two financial numbers compared to each other. NIO company had EBIT of $ -139 and interest expense of $ -16 (NIO, 2020). At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. Any comment you publish, together with your investing.com profile. "Yield" rating is based on the dividend relative to its share price, Revenue revisions (one year) rating is based on the evolution of revenue revisions of the company for the current fiscal year and the next one, Revenue revisions (four months) rating is based on the evolution of revenue revisions of the company for the current fiscal year and the next one. The ratio gauges the companys assets efficacy in generating revenue (Robison, 2020). - load the data into the program>>. For the last few months, analysts have been revising downwards their earnings forecast. Tesla company has a higher ROA an implication of enhanced efficacy in generating cash from its In the last 7 days, the more the sales estimates have been revised upwards from a relative point of view, the better the rating. TIE= -139/- Therefore: The ESG controversies score is calculated based on 23 ESG controversy topics. NYSE and AMEX data is at least 20 minutes delayed. The company's enterprise value to sales, at 4.86 times its current sales, is high. It may therefore take some time before it appears on our website. ReadyRatios - Each ratio value is given a score ranging from -2 and +2 depending on its position relative to the quartiles (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. Tesla Inc. net profit margin ratio improved from 2019 to 2020 and from 2020 to 2021. 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. Calculations and summary conclusions are made New Hope, Penn: Fabozzi. within the same industry, and also with the quartiles of those ratios. 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. NIO company with an inventory turnover of 3, higher than that of Tesla reveals that NIO has This section also provides graphical representation of Tesla Inc's key financial ratios. The community score measures the companys commitment to being a good citizen, protecting public health and respecting business ethics. The CSR strategy score reflects a companys practices to communicate that it integrates economic (financial), social and environmental dimensions into its day-to-day decision-making processes. Earnings quality rating is based on quality of past earnings released by the company compared to analysts' estimates. The purpose of an accounting ratio is to make financial reports regarding the performance of a company in a specified period normally by a year. 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. So far this year, Teslas down 5.39%. 10-K (reporting date: 2019-12-31), The monthly returns are then compounded to arrive at the annual return. The company can improve the ratio by reducing the expenses or increasing the revenues. Learn more about Zacks Equity Research reports. Company's financial ratios are compared with the median values of ratios of all companies and of companies Well occasionally send you promo and account related emails. only makes it exceptional but also gives it a considerable competitive advantage in the 2018). The company has an Enterprise Value to EBITDA ratio of 23.25. Copyright 2023 Zacks Investment Research | 10 S Riverside Plaza Suite #1600 | Chicago, IL 60606. : Spam and/or promotional messages and comments containing links will be removed. 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. Growth rating is based on the evolution of the turnover of the company between the last year and the three coming years according to consensus estimates. Only post material thats relevant to the topic being discussed. Retrieved from "ReadyRatios Financial Analysis" The product responsibility score reflects a companys capacity to produce quality goods and services, integrating the customers health and safety, integrity and data privacy. WebTesla Inc. balance sheet, income statement, cash flow, earnings & estimates, ratio and margins. = 100 5,519 53,823 = 10.25%, Tesla Inc., ROE calculation, comparison to benchmarks, 1 2021 Calculation Quick Ratio The quick ratio of the company from = 19,620 19,705 = 1.00, Tesla Inc., cash ratio calculation, comparison to benchmarks, 1 2021 Calculation Additionally, NIO has a higher interest coverage ratio than the Tesla company an indication of 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. The company has strong fundamentals. ir.nio/financials/quarterly-results Stay in the know! It's packed with all of the company's key stats and salient decision making information. Financial ratios as indicators of economic Return on Sales. To draw a conclusion from the analysis the individual scores are weighted equally to get an overall score ranging from -2 and +2. It means that the company has a lower ability to pay its operating expenses such as rent and salaries. Financials. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply. NIO company has a higher gross profit margin value indicating that it made more profits than the The Center for Disease Control and Prevention is a part of the American Discovery Your ability to comment is currently suspended due to negative user reports. Net Sales Growth, EBITDA Growth, EBIT Growth.- Profitability ratios measure the returns generated on sales and investment, hence the ability of the company to generate profits.Profitability ratios include margin ratios (such as profit margin or operating margin) and return ratios (such as return on equity or return on assets).- Capital structure and liquidity ratios measure the extent to which the company is relying upon debt to fund its operations, and its ability to pay back the debt. Journal of Applied Accounting and Taxation , 3 (2), 110-116. Zacks Style Scores Education - Learn more about the Zacks Style Scores. The comparison is based Accounts Receivable Turnover. Memorandum Quick ratio = Total quick assets Current liabilities The scores are based on the trading styles of Value, Growth, and Momentum. 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. %USER_NAME% was successfully added to your Block List. (1999). EPS revisions (one year) rating is based on the evolution of EPS (earnings per share) revisions of the company for the current fiscal year and the next one, EPS revisions (four months) rating is based on the evolution of EPS (earnings per share) revisions of the company for the current fiscal year and the next one, Consensus rating is based on analyst recommendations, Potential rating is based on the average target price fixed by the consensus from Thomson Reuters. Since 1988 it has more than doubled the S&P 500 with an average gain of +24.48% per year. It means that the company is not sufficiently using the investors investments in the business to generate its profits ( Thukaram, 2003) . 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. 809/ Company's financial ratios are compared with the median values of ratios of all companies and of companies Net Annual Credit Sales [(Beginning Accounts Receivable +Ending Accounts Receivable)/2] A higher ratio that is close to the industrial expectation is good for the company so that it can attract investors. As of the end of 2018, Tesla's debt-to-equity (D/E) ratio was 3.71. 6 Tesla was carrying over $23 billion of debt, while it has raised roughly $6 billion of equity. Fast-forwarding to 2021, the company's capital structure has completely changed. The paper depicts 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 industry average was 15.86% for the first three months of 2022. 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. Even negative opinions can be framed positively and diplomatically. References Since youve just unblocked this person, you must wait 48 hours before renewing the block. The ratio is an indication that the company does not do well in managing the expenses relative to the net sales. The (current) company valuation of Tesla Inc. is therefore way below its valuation average over the last five years. If you wish to go to ZacksTrade, click OK. Description. Be respectful. Select each Category to receive additional Information. WebFind out how Tesla, Inc. (TSLA) is performing against its competitors. =1. Tesla company has a higher financial leverage ratio an implication that the company is using debt Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. (NIO,2020). technology in accounting. The business is more risky to the creditors and the investors because it uses more money to pay the debts and the interest payments. operations so as not to lose a segment of its market share to NIO which has a higher inventory To learn more, click here. This rating is based on the number of analysts present within the consensus as well as the number of numerical estimates concerning the future evolution of the company's business analysed. 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. 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