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Tesla Financial Statement Analysis Case Study

Please see the attached instructions and excel data file. Need by April 11th @ 5pm EST.

Excel – Ratios intessive.

Please see details of assignment to be completed.



Income Statement All numbers in millions
year ending 12/31/2022 year ending 12/31/2021
Total Revenue 81,462 53,823
Cost of Revenue 60,609 40,217
Gross Profit 20,853 13,606
Research and Development 3,075 2,593
Selling, Marketing & Admin 3,946 4,517
Income from Operations 13,832 6,496
Other Income or Expense -219 162
Pretax Income 13,719 6,343
Tax Provision 1,132 699
Net Income 12,583 5,519
Balance Sheet All numbers in millions
12/31/22 12/31/21 12/31/20
Cash And Cash Equivalents 16,253 17,576 19,384
Short Term Investments 5,932 131 – 0
Net Receivables 2,952 1,913 1,886
Inventory 12,839 5,757 4,101
Other Current Assets 2,941 – 0 – 0
Total Current Assets 40,917 27,100 26,717
Property Plant and Equipment, net 36,635 31,176 23,375
Goodwill 593 1,717 520
Other Assets 4,193 2,138 1,536
Total Assets 82,338 62,131 52,148
Accounts Payable 21,288 14,817 8,962
Other Current Liabilities 5,421 4,888 5,286
Total Current Liabilities 26,709 19,705 14,248
Long Term Debt 9,731 10,843 14,221
Other Liabilities – 0 – 0 – 0
Total Liabilities 36,440 30,548 28,469
Common Stock 33,013 31,252 29,078
Retained Earnings 12,885 331 (5,399)
Other Stockholder Equity – 0 – 0 – 0
Total Stockholder Equity 45,898 31,583 23,679
Total Liabilities & Stockholder Equity 82,338 62,131 52,148
Liquidity ratios year ending 12/31/22 year ending 12/31/21
current ratio
quick ratio
accounts receivable turnover
average days to collect receivables
inventory turnover
average days to sell inventory
Solvency ratios
debt to assets ratio
debt to equity ratio
Profitability ratios
net margin
return on investment
return on equity
Stock market ratio
P/E ratio



Tesla Financial Statement Analysis Case Study

Due date of your case study is 11:59pm, Friday, April 12, 2024. Please submit your case study report on Canvas under “Assignments” then “Case Study” then submit Assignment as a file upload. The submission should include all the required analyses in Excel as well as a written report in Microsoft Word or PDF file format. The case study will comprise 15% of your final grade for the semester. The report will be checked by the built-in software for plagiarism and AI generated content. Quote or cite appropriately. If the text similarity report shows a percentage greater than 10%, your paper will not be accepted for grading (note: Similarity score already excludes quoted content).

Students will:

 Use the annual Financial Statements (Income Statement and Balance Sheet) of Tesla from Canvas under “Assignments” then “Case Study” for the two most recent years. Some balance sheet items for 2020 are also needed for calculating averages for ratio analysis;

 Calculate trend analysis (horizontal analysis) by comparing 2022 to 2021 for each of the income statement and balance sheet items of Tesla (only show percentage changes such as +5.7% or −12.3%.); Excel formula such as =(B3-C3)/+C3 and etc.

 Calculate a common-size (vertical analysis) for each of the income statement and balance sheet items of Tesla for the most recent year (2022); Excel formula such as =B3/81462 and etc.

 Calculate all the ratios*** (except Earnings per share) found in Chapter 9 PowerPoint slides under the following headings, for the two most recent years (2022 and 2021):

o Liquidity Ratios (6 ratios; current ratio, quick ratio, accounts receivable turnover, average days to collect receivables, inventory turnover, average days to sell inventory)

o Solvency Ratios (2 ratios; debt to assets ratio, debt to equity ratio) o Profitability Ratios (3 ratios; net margin, return on investment, return on

equity) o Stock Market Ratios (1 ratio; price-earnings ratio)

 Prepare a case study report: answer the question (one to two pages) – would you invest in Tesla? Why or why not based upon your calculations [provide sufficient evidence (such as ratios are improving/deteriorating and/or better/worse than the “rule of thumb” standard, etc.) to support your decision].

***Students must show detailed calculations for all the ratios for the most recent year (2022) {e.g., accounts receivable turnover = net credit sales / average accounts receivable = $81,462 / [($2,952 + $1,913) / 2] = 33.49 for 2022} to ensure that they are not simply copying them from a website.

Additional information: 1. Based on the given information of Tesla, we will treat total revenue as sales, net sales and net credit sales; cost of revenue as cost of goods sold; net receivable as accounts receivable. 2. Inventory and assets listed thereafter on the balance sheet are not quick assets while assets listed before inventory are quick assets.

3. Earnings per share (EPS) = $ for 2022 and use the most recent stock market price (available from Yahoo Finance to calculate the P/E ratio for 2022 only and compare it with the current S&P 500 companies’ average P/E ratio of 16.

Your case study report should be completed with 10- to 12-point font, 1-inch margins on each side.

Format of the report: Title Page

Introduction (a short paragraph about what your case study is about) Analyses (horizontal, vertical and ratio) Decision/Conclusion

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