Tesla Inc (TSLA)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total assets | US$ in thousands | 106,618,000 | 82,338,000 | 62,131,000 | 52,148,000 | 34,309,000 |
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $—K ÷ $106,618,000K
= 0.00
The debt-to-assets ratio of Tesla Inc has exhibited a declining trend over the past five years, indicating a strengthening financial position in terms of leverage. In 2019, the ratio stood at 0.39, signifying that 39% of the company's assets were financed by debt. However, the ratio consistently decreased to 0.05 by the end of 2023, suggesting that only 5% of the company's assets were funded by debt. This reduction indicates that Tesla has been progressively relying less on debt to finance its operations and acquire assets, potentially reducing its financial risk and enhancing its ability to generate returns for shareholders.
Peer comparison
Dec 31, 2023