FIN 571 University of Phoenix Wk 4 Teslas Inc Corporate Finance Analysis Essay

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gevgr76

Business Finance

FIN 571

University of Phoenix

FIN

Description

Shareholder Analysis

Assignment Content

  1. Continue your work with AT&T
  2. Research AT&T financial reports for 2017.
  3. Complete a 2- to 3-page FAQ/Shareholder Analysis.
  4. Evaluate economic conditions that influence company performance. Consider political, environmental, currency (money), global economics, and government influences on economic conditions.
  5. Compare market conditions with the company’s performance for 2017. Conclude how the market conditions that year influenced the company’s performance, such as interest rates, Federal Reserve Bank monetary policy changes, or other market conditions relevant to the company you selected.
  6. Analyze year-over-year performance from 2016 and 2017. Consider key metrics or ratios such as trailing PE ratio, forward PE ratio, price to book, return on assets, and return on equity in your conclusions.
  7. Cite references to support your assignment.

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Explanation & Answer

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Running head: TESLA’S FINANCIALS

1

Tesla’s Financials
Name
Institution

TESLA’S FINANCIALS

2
Tesla’s Financials

Tesla's comparison to the market
Tesla Inc. has been at the forefront of championing electric vehicle technology.
Technologically, the company has made significant strides in advancing EV cars with a series of
popular product lines. Tesla had consistently made losses until recently when it declared a net
profit of $104 million for the second quarter (Market Watch, 2020). However, this has been the
trend in the industry. In 2017, for example, Tesla reported a net loss of $1.96 billion while NIO,
one of its competitors, reported a loss of $ 410.74 million, and Workhorse made a loss of $41.22
million. Tesla seems to have turned around its financials to make a decent profit going by its
quarter two accounts; however, its ability to sustain such performance remains to be seen.
Market analysts
Ben Kallo and David Katter, analysts at Baird, suggest that Tesla is in a bullish trend and
is must-have stock (Market Watch, 2020). Dan Ives of Wedbush, on the other hand, is neutral on
the stock (Kollymeyer, 2020). 33 Analysts at CNN, on the other hand, recommend investors to
hold the stock (CNN, 2020). There are mixed views on the future of the stock, as seen from these
analysts' sentiments.
Ratio Analysis
Liquidity
Liquidity Ratios
Current Ratio
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑅𝑎𝑡𝑖𝑜 =

Assets

𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐴𝑠𝑠𝑒𝑡𝑠
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠

2018
28.66

2019
29.74

2019
34.31

TESLA’S FINANCIALS

3
Liabilities
Current Ratio

23.02
1.25

23.43
1.27

26.2
1.31

Quick Ratio
𝑄𝑢𝑖𝑐𝑘 𝑅𝑎𝑡𝑖𝑜 =

𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐴𝑠𝑠𝑒𝑡𝑠 − 𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐿�...


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