Tesla Inc (TSLA)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 62,634,000 | 44,704,000 | 30,189,000 | 22,225,000 | 6,618,000 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $62,634,000K)
= 0.00
The debt-to-capital ratio of Tesla Inc has exhibited a downward trend over the past five years, indicating a decreasing reliance on debt to finance its operations and investments. As of December 31, 2023, the ratio stood at 0.08, suggesting that only 8% of the company's capital structure is attributed to debt. This represents a significant improvement from the 2019 figure of 0.67, reflecting a substantial reduction in the proportion of debt relative to the overall capital. This trend may indicate a more conservative approach to financing, potentially reducing financial risk and enhancing the company's financial stability. However, it's essential to consider the reasons behind this reduction in the debt-to-capital ratio and its potential implications for future growth and investment opportunities.
Peer comparison
Dec 31, 2023