Tesla Inc (TSLA)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 106,618,000 | 82,338,000 | 62,131,000 | 52,148,000 | 34,309,000 |
| Total stockholders’ equity | US$ in thousands | 62,634,000 | 44,704,000 | 30,189,000 | 22,225,000 | 6,618,000 |
| Financial leverage ratio | 1.70 | 1.84 | 2.06 | 2.35 | 5.18 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $106,618,000K ÷ $62,634,000K
= 1.70
The financial leverage ratio of Tesla Inc has shown a declining trend from 5.18 in 2019 to 1.70 in 2023. This indicates that the company has been gradually reducing its reliance on debt to finance its operations and growth. A lower financial leverage ratio suggests a stronger equity position relative to debt, which may signal improved financial stability and risk management. However, it's important to note that the trend of decreasing leverage should be evaluated in conjunction with other financial metrics to gain a comprehensive understanding of Tesla's financial health and capital structure.
Peer comparison
Dec 31, 2023