Tesla Inc (TSLA)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	16,139,000	16,398,000	16,253,000	17,576,000	19,384,000
Short-term investments	US$ in thousands	20,424,000	12,696,000	5,932,000	131,000	—
Total current liabilities	US$ in thousands	28,821,000	28,748,000	26,709,000	19,705,000	14,248,000
Cash ratio		1.27	1.01	0.83	0.90	1.36

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($16,139,000K + $20,424,000K) ÷ $28,821,000K
= 1.27

The cash ratio of Tesla Inc has shown fluctuations over the years based on the provided data. As of December 31, 2020, the cash ratio was 1.36, indicating that Tesla had $1.36 in cash and cash equivalents for every dollar of current liabilities. However, by December 31, 2021, the cash ratio decreased to 0.90, suggesting a lower level of liquidity compared to the previous year.

Subsequently, the cash ratio continued to decrease to 0.83 by December 31, 2022, reflecting a potential strain on Tesla's ability to cover its short-term obligations with its available cash reserves. However, in the following year, the cash ratio improved to 1.01 as of December 31, 2023, indicating a slightly better liquidity position.

By December 31, 2024, the cash ratio further increased to 1.27, signaling an improvement in Tesla's ability to meet its short-term liabilities with its cash holdings. Overall, fluctuations in Tesla's cash ratio over the years may suggest varying levels of liquidity and financial health within the company.