In: Accounting
Company: Tesla
1. Identify a publicly-traded U.S.-based company (other than Target) in which you have some interest, and which has significant amounts of inventory. Such a company likely will be manufacturer (e.g., Tesla, Dover, Pfizer, Boeing, etc.) or (re)seller (e.g., McDonald’s, Costco, Home Depot, Kroger, CVS, etc.).
2. Obtain the latest audited annual financial statements for the company identified. Generally, that will mean either:
a. Use the information in Appendix A of your text, Accessing the EDGAR Database through the Internet, to obtain and download or print as a pdf the company’s latest, complete Form 10-K, including its complete financial statements; or
b. Navigate the company’s website to find its investor relations page from which you can download or print as a pdf its latest annual report or Form 10-K.
3. The financial statements downloaded in item 2 will include a balance sheet, income statement, statement of cash flows, and statement of changes in stockholder’s equity for (at least) the last two fiscal years.
a. Use the information in those statements to compute the financial ratios presented and described in Appendix C of your text for each of the most recent two years for which data are presented.
b. Immediately following your computation of each ratio pair, provide your assessment of the aspect of the company’s performance measured by the ratio. Please do not get bogged down in this part of the assignment. Truly, just write what you think. I’m not looking for a “textbook” answer here; we have an entire term to come up with those.
4. Submit your responses along with the company’s primary financial statements (i.e., its balance sheet, income statement, statement of cash flows, and statement of changes in stockholder’s equity, only) as a single pdf file.
As we see in the above ratio table that is extracted from latest 10K of tesla, following points can be analysed.
1.There are 3 segments of Tesla, Automative and services and Generation & storage. Tesla is having most gross profit from its total automative sector.
2.The RandD expenses are decreasing from yoy 2017 to 2019, this predicts that the company was doing reaserach on products till and then started capitalise on the producing the products from 2019.
3.The selling and dist expenses are also decreasing from 2017 to 2019. It suggests that the company may have reduced its marketing expenses.
4.The interest costs is decreasing as the debt of company is decreasing
Please download 10K of tesla from following link and then submit
https://ir.tesla.com/node/20456/html