Tesla Inc (TSLA)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 16,398,000 | 16,253,000 | 17,576,000 | 19,384,000 | 6,268,000 |
| Short-term investments | US$ in thousands | 12,696,000 | 5,932,000 | 131,000 | — | — |
| Total current liabilities | US$ in thousands | 28,748,000 | 26,709,000 | 19,705,000 | 14,248,000 | 10,667,000 |
| Cash ratio | 1.01 | 0.83 | 0.90 | 1.36 | 0.59 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($16,398,000K
+ $12,696,000K)
÷ $28,748,000K
= 1.01
The cash ratio of Tesla Inc has fluctuated over the past five years, with the highest value recorded at 1.45 in 2020 and the lowest at 0.65 in 2019. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations with liquid assets.
In 2023, Tesla's cash ratio of 1.13 suggests an improved liquidity position compared to the previous year, as the company holds $1.13 in cash and cash equivalents for every dollar of current liabilities. This may indicate a more secure financial position in terms of short-term liquidity. However, it is important to consider the trend over multiple years to assess the company's ongoing ability to meet short-term obligations with liquid assets.
Peer comparison
Dec 31, 2023