Tesla Inc (TSLA)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.67 | 1.71 | 1.70 | 1.70 | 1.70 | 1.76 | 1.77 | 1.81 | 1.84 | 1.87 | 1.88 | 1.94 | 2.06 | 2.14 | 2.22 | 2.30 | 2.35 | 2.85 | 3.87 | 4.06 |
Based on the provided data for Tesla Inc, the solvency ratios paint a picture of a company with very low levels of debt relative to its assets, capital, and equity throughout the reported periods. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio were consistently at 0.00, indicating that Tesla had no debt obligations relative to its total assets, capital, and equity during the specified periods.
The Financial leverage ratio, on the other hand, decreased steadily from 4.06 on March 31, 2020, to 1.67 on December 31, 2024. This downward trend suggests that Tesla was gradually reducing its reliance on debt financing to fund its operations and investments over the years, which is a positive sign for the company's financial health.
Overall, the solvency ratios indicate that Tesla Inc had a strong financial position with minimal debt exposure and decreasing financial leverage, reflecting a sound and stable capital structure during the reported periods.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 22.49 | 27.06 | 30.14 | 44.15 | 65.08 | 93.05 | 94.43 | 81.49 | 72.66 | 54.88 | 36.04 | 29.15 | 17.76 | 8.25 | 5.52 | 3.22 | 2.35 | 2.20 | 1.66 | 0.92 |
The interest coverage ratio is a financial metric that indicates a company's ability to cover its interest expenses with its operating income. It is calculated by dividing a company's earnings before interest and taxes (EBIT) by its interest expense.
Analyzing the interest coverage ratio data for Tesla Inc provided in the json, we observe a fluctuating trend from March 31, 2020, to December 31, 2024. The interest coverage ratio started at a relatively low level of 0.92 in March 2020, indicating that Tesla's operating income was not sufficient to cover its interest expenses at that time. However, the ratio gradually improved over the quarters, reaching 36.04 in June 30, 2022, and peaking at 94.43 in June 30, 2023.
This upward trend in the interest coverage ratio signifies an enhancement in Tesla's ability to meet its interest obligations comfortably, reflecting improved financial health and operational efficiency. The substantial increase in the ratio from 2020 to 2023 suggests that Tesla's earnings were significantly exceeding its interest expenses during this period.
However, starting from September 30, 2023, we see a decline in the interest coverage ratio, dropping to 27.06 by September 30, 2024. This decrease may raise concerns about Tesla's ability to continue servicing its interest payments with the same level of ease as in the previous quarters.
The significant fluctuation in Tesla's interest coverage ratio over the years highlights the importance of closely monitoring the company's financial performance, profitability, and debt management practices to ensure sustainable operations and financial stability.