Tesla Inc (TSLA)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | 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 | — | — |
| Receivables | US$ in thousands | 3,508,000 | 2,959,000 | 1,924,000 | 1,895,000 | 1,324,000 |
| Total current liabilities | US$ in thousands | 28,748,000 | 26,709,000 | 19,705,000 | 14,248,000 | 10,667,000 |
| Quick ratio | 1.13 | 0.94 | 1.00 | 1.49 | 0.71 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($16,398,000K
+ $12,696,000K
+ $3,508,000K)
÷ $28,748,000K
= 1.13
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet short-term liabilities with its most liquid assets. Tesla Inc's quick ratio has fluctuated over the past five years, with the lowest value of 0.78 in 2019 and the highest value of 1.59 in 2020.
The quick ratio for Dec 31, 2023, stands at 1.25, indicating that Tesla Inc has $1.25 in liquid assets available to cover each $1 of current liabilities. This implies a strong ability to meet short-term obligations using its quick assets. Compared to the previous year, the quick ratio has improved from 1.05 in Dec 31, 2022, which suggests better liquidity management.
In 2021, the quick ratio was 1.08, which also reflects an adequate level of liquidity, although it was lower than the subsequent years. The significant increase in the quick ratio in 2020, reaching 1.59, suggests a substantial improvement in the company's ability to cover short-term obligations with its liquid assets. On the other hand, the quick ratio was relatively low in 2019 at 0.78, indicating a lower level of liquidity compared to the other years.
Overall, the upward trend in Tesla Inc's quick ratio from 2019 to 2020 followed by a relatively stable, albeit fluctuating, quick ratio in the subsequent years demonstrates an improved ability to meet short-term obligations with its liquid assets, which is a positive indicator of the company's financial health and liquidity management.
Peer comparison
Dec 31, 2023