Tesla Inc (TSLA)

Financial leverage ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Total assets US$ in thousands 122,070,000 106,618,000 82,338,000 62,131,000 52,148,000
Total stockholders’ equity US$ in thousands 72,913,000 62,634,000 44,704,000 30,189,000 22,225,000
Financial leverage ratio 1.67 1.70 1.84 2.06 2.35

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $122,070,000K ÷ $72,913,000K
= 1.67

The financial leverage ratio of Tesla Inc has shown a declining trend over the past five years, decreasing from 2.35 in December 2020 to 1.67 in December 2024. This indicates that the company has been reducing its reliance on debt financing in relation to its equity. A decreasing financial leverage ratio can suggest improved financial stability and lower risk as the company is less leveraged, relying more on its own equity to support its operations. Overall, the trend in Tesla's financial leverage ratio demonstrates a positive shift towards a more conservative capital structure.


See also:

Tesla Inc Financial Leverage