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.
Peer comparison
Dec 31, 2024