The company currently holds 5.87
B in liabilities with Debt to Equity (D/E) ratio of 0.14, which may suggest Tesla Inc is not taking enough advantage from borrowing.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Tesla has an asset utilization ratio of 927.87 percent. This suggests that the company is making $9.28 for each dollar of assets. An increasing asset utilization means that Tesla Inc is more efficient with each dollar of assets it utilizes for everyday operations.
Tesla financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Tesla, including all of Tesla's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Tesla assets, the company is considered highly leveraged. Understanding the
composition and structure of overall Tesla debt and outstanding corporate bonds gives a good idea of
how risky the capital structure of a business is and if it is worth investing in it. Please read more on our
technical analysis page.
Understanding Tesla Total Debt
Tesla Inc liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Tesla Inc has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Tesla balance sheet include debt obligations and money owed to different Tesla vendors, workers, and loan providers. Below is the chart of Tesla main long-term debt accounts currently reported on its balance sheet.
You can use Tesla Inc
financial leverage analysis tool to get a better grip on understanding its financial position
How important is Tesla's Liquidity
Tesla
financial leverage refers to using borrowed capital as a funding source to finance Tesla Inc ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Tesla financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Tesla's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Tesla's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Tesla's total debt and its cash.
An Additional Perspective On Tesla Inc
The big decline in price over the last few months for Tesla created some momentum for investors as it was traded today as low as
185.66 and as high as
192.57 per share. The company directors and management failed to add value to investors and position the company supply of money to exploit
market volatility in
October. However, diversifying your holdings with Tesla Inc or similar stocks can still protect your portfolios during high-volatility market scenarios. The stock standard deviation of daily returns for 90 days investing horizon is currently 3.41. The above-average risk is mostly attributed to
market volatility and speculations regarding some of the upcoming earning calls from Tesla Inc partners.
Asset Breakdown
| Total Assets | 67.04 Billion |
| Current Assets | 29.24 Billion |
| Assets Non Current | 5.13 Billion |
Another small slip for Tesla
The total risk alpha is down to -0.71 as of today.
As of the 19th of November, Tesla has the
risk adjusted performance of
(0.30), and Coefficient Of Variation of
(463.38). In relation to
fundamental indicators, the
technical analysis model makes it possible for you to check existing technical drivers of Tesla Inc, as well as the relationship between them. In other words, you can use this information to find out if the company will indeed mirror its model of past prices and volume data, or the prices will eventually revert. We were able to break down and interpolate nineteen
technical drivers for Tesla Inc, which can be compared to its competition. Please validate
Tesla Inc jensen alpha,
potential upside, as well as the
relationship between the Potential Upside and
skewness to decide if Tesla is priced more or less accurately, providing market reflects its prevalent price of 180.19 per share. Given that Tesla Inc has
jensen alpha of
(0.72), we advise you to double-check Tesla Inc's current market performance to make sure the company can sustain itself at a future point.
Whereas some companies in the auto manufacturers industry are either recovering or due for a correction, Tesla may not be performing as strong as the other in terms of long-term growth potentials. To conclude, as of the 19th of November 2022, we see that Tesla responds to the market. The company is
undervalued with
very low odds of financial turmoil within the next 24 months. Our concluding 90 days buy-sell recommendation on the company is
Cautious Hold.
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Aina Ster is a Member of Macroaxis Editorial Board. Aina delivers weekly perspective on ongoing market and economic trends, analysis and tips from predictive analysis to forecasting across various financial instruments.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Aina Ster do not own shares of Tesla Inc. Please refer to our
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