What is Tesla's debt-to-equity ratio? (2024)

What is Tesla's debt-to-equity ratio?

Tesla, Inc. (TSLA) had Debt to Equity Ratio of 0.08 for the most recently reported fiscal year, ending 2023-12-31.

What is Tesla debt to equity?

Tesla's operated at median long-term debt / equity of 14.1% from fiscal years ending December 2019 to 2023. Looking back at the last 5 years, Tesla's long-term debt / equity peaked in December 2019 at 156.8%. Tesla's long-term debt / equity hit its 5-year low in December 2022 of 2.3%.

Does Tesla have a high debt ratio?

As of 4Q 2023, Tesla's total liabilities were only 70% of its equity, or 0.7X. This is the lowest ratio that Tesla has recorded since 2015. The low ratio means that Tesla's equity surpasses its total liabilities. In simpler terms, if Tesla needs to pay off all its liabilities, it can do so with its equity.

What is a good ratio of debt to equity?

Although it varies from industry to industry, a debt-to-equity ratio of around 2 or 2.5 is generally considered good. This ratio tells us that for every dollar invested in the company, about 66 cents come from debt, while the other 33 cents come from the company's equity.

What is Apple's debt-to-equity ratio?

Apple has a total shareholder equity of $74.1B and total debt of $108.0B, which brings its debt-to-equity ratio to 145.8%. Its total assets and total liabilities are $353.5B and $279.4B respectively. Apple's EBIT is $118.7B making its interest coverage ratio 648.4. It has cash and short-term investments of $73.1B.

Why is Tesla debt so low?

Cobb attributes Tesla's low debts to a few different things, with the first being its sleek lineup of cars, innovative technology, and its overall dedication to renewable energy and sustainability.

Is Tesla heavily leveraged?

Tesla's financial leverage for fiscal years ending December 2019 to 2023 averaged 2.6x. Tesla's operated at median financial leverage of 2.1x from fiscal years ending December 2019 to 2023. Looking back at the last 5 years, Tesla's financial leverage peaked in December 2019 at 5.2x.

Is Tesla overvalued or undervalued?

With its 3-star rating, we believe Tesla's stock is fairly valued compared with our long-term fair value estimate.

Does Tesla have no debt?

Tesla has become nearly debt-free in just two decades, a feat that's unheard of in the auto industry's more-than-century-old history.

Is Tesla financially viable?

In 2022, Tesla was one of the most profitable carmakers in the world, but its margins from vehicle sales have fallen by almost one-third in the last year and are now comparable to those of other large rivals.

What's a bad debt to equity ratio?

The maximum acceptable debt-to-equity ratio for more companies is between 1.5-2 or less. Large companies having a value higher than 2 of the debt-to-equity ratio is acceptable. 3. A debt-to-equity ratio indicates that a company may not be able to generate enough cash to satisfy its debt obligations.

Is a 40% debt-to-equity ratio good?

Most lenders hesitate to lend to someone with a debt to equity/asset ratio over 40%. Over 40% is considered a bad debt equity ratio for banks. Similarly, a good debt to asset ratio typically falls below 0.4 or 40%. This means that your total debt is less than 40% of your total assets.

Is a debt ratio of 75% bad?

Interpreting the Debt Ratio

If the ratio is over 1, a company has more debt than assets. If the ratio is below 1, the company has more assets than debt. Broadly speaking, ratios of 60% (0.6) or more are considered high, while ratios of 40% (0.4) or less are considered low.

How much is Disney in debt?

Total debt on the balance sheet as of December 2023 : $47.69 B. According to Walt Disney's latest financial reports the company's total debt is $47.69 B. A company's total debt is the sum of all current and non-current debts.

What is Amazon's debt-to-equity ratio?

Amazon.com, Inc. (AMZN) had Debt to Equity Ratio of 0.29 for the most recently reported fiscal year, ending 2023-12-31.

Is Tesla in debt?

Total debt on the balance sheet as of December 2023 : $9.57 B. According to Tesla's latest financial reports the company's total debt is $9.57 B. A company's total debt is the sum of all current and non-current debts.

Is Tesla struggling financially?

Key Takeaways. Shares of Tesla fell as Wells Fargo said the EV maker is likely to see no sales growth in 2024. The bank cut its rating on the stock to underweight and lowered its price target to $125 from $200. Tesla's struggling to sell cars even as it lowers prices in various markets, and that's affecting its profit.

Why was Tesla not profitable?

Profits were off because Tesla lowered prices worldwide through the year in an effort to boost its sales and market share. Earlier this month Tesla reported that fourth-quarter sales rose by almost 20%, boosted by steep price cuts in the U.S. and worldwide through the year.

Why is Tesla so overpriced?

But they remain in high demand. One reason why the price is so high is that demand is strong. Expanding production capacity and building new factories may help moderate prices. The other main reason why Tesla's prices are high is the high cost of the electric battery packs that power these vehicles.

Is Tesla a high risk company?

Tesla Inc (Tesla) has a moderate risk profile and is one of the top fifty companies based on our proprietary risk assessment of vehicle manufacturing sector in the automotive industry.

Who has the most equity in Tesla?

Tesla is the world's most valuable auto manufacturer, with a market capitalization of $611 billion. CEO Elon Musk is by far the largest shareholder, with over 20% of the company's equity. Besides Musk, the largest shareholders are asset management companies like BlackRock, Vanguard, and State Street.

Why is Tesla a high risk stock?

The electric vehicle (EV) maker, Tesla, has a number of key risks that it will face in the next 5-10 years. Notable risks include Tesla cars being too expensive with tax breaks and that the construction of its Gigafactory (battery factory) taking longer than expected.

Is Tesla a buy hold or sell?

Tesla has a conensus rating of Hold which is based on 10 buy ratings, 18 hold ratings and 6 sell ratings. What is Tesla's price target? The average price target for Tesla is $207.74. This is based on 34 Wall Streets Analysts 12-month price targets, issued in the past 3 months.

What is the forecast for Tesla stock in 2024?

Wall Street expects Tesla earnings per share of just $2.96 a share in 2024, according to FactSet. That would be a around a 5% decline vs. last year's $3.12. That was a 23% decline vs. 2022. Analyst project a solid increase in 2025 to $4.13 a share.

What is fair value for Tesla?

As of 2024-03-27, the Fair Value of Tesla Inc (TSLA) is 117.74 USD. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 177.67 USD, the upside of Tesla Inc is -33.7%.

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