Tesla Inc (TSLA)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.67 | 1.70 | 1.84 | 2.06 | 2.35 |
The solvency ratios of Tesla Inc indicate a strong financial position with consistently low levels of debt relative to its assets, capital, and equity over the years. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio all remain at 0.00 from December 31, 2020 to December 31, 2024, suggesting that the company is not reliant on debt financing to support its operations.
In terms of the Financial Leverage ratio, there is a noticeable improvement from 2.35 at December 31, 2020 to 1.67 at December 31, 2024. This downward trend indicates that Tesla is effectively managing its debt levels in relation to its equity, thereby reducing financial risk and increasing stability.
Overall, the consistently low debt ratios and decreasing financial leverage ratio point to Tesla's strong solvency and financial health, positioning the company well to weather economic uncertainties and pursue future growth opportunities.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 20.22 | 65.08 | 72.66 | 17.76 | 2.35 |
Based on the provided data, Tesla Inc's interest coverage ratio has significantly improved over the years. In December 31, 2020, the interest coverage ratio was 2.35, indicating that the company's ability to cover its interest expenses with operating income was relatively weak.
However, by December 31, 2021, the interest coverage ratio improved significantly to 17.76, showing a substantial increase in the company's ability to cover interest payments. This improvement continued in December 31, 2022, with an even stronger interest coverage ratio of 72.66, reflecting a robust ability to meet interest obligations.
In December 31, 2023 and December 31, 2024, the interest coverage ratios remained high at 65.08 and 20.22 respectively, indicating that Tesla Inc continued to have a healthy capacity to cover its interest expenses with operating income.
Overall, the trend in Tesla Inc's interest coverage ratio demonstrates a positive financial performance, with a continuous strengthening of its ability to meet its interest obligations over the years. This improvement suggests a healthier financial position and potentially lower financial risk for the company.