The ratio can also be an indication that investors do not want to fund the operations of the company because it is not performing well which is evident from the fact that its income before the tax cannot even cover the interest payments. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. NIO company has a higher gross profit margin value indicating that it made more profits than the This is our short term rating system that serves as a timeliness indicator for stocks over the next 1 to 3 months. The resource use score reflects a companys performance and capacity to reduce the use of materials, energy or water, and to find more eco-efficient solutions by improving supply chain management. augmented competition in the automotive industry and various companies such as NIO; top = 19,620 19,705 = 1.00, Tesla Inc., cash ratio calculation, comparison to benchmarks, 1 2021 Calculation The EV/EBITDA NTM ratio of Tesla Inc. is significantly lower than its historical 5-year average: 37.9. The (current) company valuation of Tesla Inc. is therefore way below its valuation average over the last five years. During the analysis we have compared the key financial ratios of the company with the average (median) values of those ratios calculated for the specific industry sector and for all industries. 2 Click competitor name to see calculations. The financial condition of Tesla, Inc. in 2021 is better than the financial condition of half of all companies engaged in the activity "Motor Vehicles and Passenger Car Bodies". to cater for its assets and production activities. 10-K (reporting date: 2020-12-31), Agusta, R. F., & Hati, S. W. (2018). Journal of Civil Engineering and Technology (IJCIET) , 6 (9), 553-557. on official financial statements filed with the U.S. Securities and Exchange Commission (SEC) through the Electronic Data Gathering, Accounts receivable turnover=11262/583. +1 between the second and the third quartile; +2 above the third quartile; The innovation score reflects a companys capacity to reduce the environmental costs and burdens for its customers, thereby creating new market opportunities through new environmental technologies and processes, or eco-designed products. Quick Ratio The quick ratio of the company from Macrotrends. It can be a concern to the investors who want to invest in the company because there is a big possibility that they are not going to get a good return for their investment that is linked to the expectations of the industry. Please note that all comments are pending until approved by our moderators. Accounts Receivable Turnover. The ever popular one-page Snapshot reports are generated for virtually every single Zacks Ranked stock. At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. Comparison of Tesla, Inc. and NIO Motors Company If you do not, click Cancel. WebTesla (TSLA) Financial Ratios Stock Screener United States World ADRs Tesla Inc (TSLA) NASDAQ Create Alert Add to Watchlist 122.40 -1.16 -0.94% 13/01 - Closed. competitor of Tesla, Inc., posses an immense economic threat to the company. Profitability ratios measure the company ability to generate profitable sales from its resources (assets). Continued use of this website indicates you have read and understood our, ReadyRatios - financial reporting and statements analysis on-line, 3711 - Motor Vehicles and Passenger Car Bodies, improved considerably (positive change of more than 1 point), improved (positive change of less than 1 point), unchanged (little or no change in score, no more than 0.11 points), deteriorated (the score has decreased by less than 1 point during the year), deteriorated considerably (the score has decreased by more than 1 point during the year). Journal of Applied Accounting and Taxation , 3 (2), 110-116. The sector with the worst average Zacks Rank (16 out of 16) would place in the bottom 1%. Tesla company net income was $38760 and its shareholders equity amounted to $8212 (Tesla, An industry with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's. . The group's high margin levels account for strong profits. Tesla Inc. quick ratio improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021 not reaching 2019 level. P/BV ratio. Net Sales Growth, EBITDA Growth, EBIT Growth.- Profitability ratios measure the returns generated on sales and investment, hence the ability of the company to generate profits.Profitability ratios include margin ratios (such as profit margin or operating margin) and return ratios (such as return on equity or return on assets).- Capital structure and liquidity ratios measure the extent to which the company is relying upon debt to fund its operations, and its ability to pay back the debt. The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. Over the past twelve months, analysts' opinions have been strongly revised upwards. Copyright 2023 Surperformance. Times Interest Earned (TIE). The community score measures the companys commitment to being a good citizen, protecting public health and respecting business ethics. This rating is based on the EBITDA margin in relation to the company's sales, based on past performance and analysts' estimates for the coming years. +1 between the second and the third quartile; +2 above the third quartile; Thanks to a sound financial situation, the firm has significant leeway for investment. in a computerized way using software and methods developed by Consulting financial and analytical company Ankon. Comments that are written in all caps and contain excessive use of symbols will be removed. Manufacturing Company. The company needs to work on its profits and also reduce the level of expenses. The company is highly valued given the cash flows generated by its activity. Please wait a minute before you try to comment again. (-2 below the first quartile; -1 between the first and the second quartile; -, Wall St closes lower after weak data, hawkish Fed comments, Grilling Musk: use CEO's tweets, thin skin against him, trial experts say, Wall St stumbles after weak data, hawkish Fed comments. You can view TSLA vs its competitors side by side income and expenses, growth rates, profitability, stock performance and The company appears highly valued given the size of its balance sheet. It also means that the company is not using its capital as efficiently as expected by the industry that it operates in ( Palepu, 2007) . By comparing each of the eleven key metrics with the median value, we have made a generalized conclusion about the quality of the financial condition of the company. The monthly returns are then compounded to arrive at the annual return. The emission reduction score measures a companys commitment and effectiveness towards reducing environmental emissions in its production and operational processes. Company's financial ratios are compared with the median values of ratios of all companies and of companies (NIO,2020). As of 2021 they employed 99.29k people. Liquidity ratios measure the company ability to meet its short-term obligations. TSLA price-to-sales ratio is 5.51. Tesla company with a total debt of $ 14700 and shareholder's equity of $8212 (Tesla, 2020) has a To build up and formulate own thoughts and ideas based on visions of other people. It allows the user to better focus on the stocks that are the best fit for his or her personal trading style. Learn more about Zacks Equity Research reports. Additionally, NIO has a higher interest coverage ratio than the Tesla company an indication of Kuhon, J. G., & Lestari, N. (2016). 2 Click competitor name to see calculations. The averages are calculated using the data from financial statements for the year 2021 submitted to the SEC through the Electronic Data Gathering, Analysis, and Retrieval system (EDGAR). When the stocks have beta greater than one, it means that the stocks have more any of each other's Investing.com's posts. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. Entrust your assignment to our professional writers and they will compose a custom paper specially for you. Company's financial ratios are compared with the median values of ratios of all companies and of companies Dheeraj SaiKrishna 560231 laid down the foundation of cryptocurrency. WebUse this page to compare Tesla (TSLA) to its peers. The The values are provided in a million $. The company has strong fundamentals. NIO company with an inventory turnover of 3, higher than that of Tesla reveals that NIO has The primary business activity of the company is Motor Vehicles and Passenger Car Bodies (SIC code 3711). -0.90 (-0.70%) (Zorn et al. The business also needs to stop relying on debt financing because it is more expensive as opposed to equity financing because it uses more money to pay the principle and interest payments. Visit Performance Disclosure for information about the performance numbers displayed above. TIE= -139/- This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply. The comparison is performed using the eleven key financial ratios (see table above). =1. Prices. Within each Score, stocks are graded into five groups: A, B, C, D and F. As you might remember from your school days, an A, is better than a B; a B is better than a C; a C is better than a D; and a D is better than an F. As an investor, you want to buy stocks with the highest probability of success. Recent Documents You haven't viewed any documents yet. How Measuring Financial Performance. The return on investment or return on the capital employed by the company is -12.68 while that of the industry is 11.53. TIE=Income before Interest and Taxes (EBIT)/Interest Expense Management Accounting For the last few months, analysts have been revising downwards their earnings forecast. The shareholders score measures a companys effectiveness towards equal treatment of shareholders and the use of anti-takeover devices. It is given by: The analysis of the company is by using the quick ratio, current ratio, interest coverage ratio, and debt to equity ratio. Group Members Assess the performance of Tesla (TSLA). The price targets of various analysts who make up the consensus differ significantly. A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. It means that the company is not sufficiently using the investors investments in the business to generate its profits ( Thukaram, 2003) . Infront Analytics provides full transparency on calculation formulae for most analytics. Tesla company inconsiderate of the expenses. This rating is based on the evolution of the analysts' price target over the last 4 months. Therefore: Change during the year is calculated by comparing the resulting score of financial position within the industry with the last year's (quarter's) score. Current Ratio. New Delhi: New Age. Sustainability , 10 (8), 2942. move by 1%. 0 the ratio value deviates from the median by no more than 5% of the difference between the median and It is given by: analysis of company financial performance. The scores are based on the trading styles of Value, Growth, and Momentum. Zacks Sector Rank Education - Learn more about the Zacks Sector Rank. Quarterly Results. =1. Price to Earnings Ratio or P/E is price / earnings. annualreports/HostedData/AnnualReports/PDF/NASDAQ_TSLA_2020.pdf The total debt to equity ratio of the company is 297.37 while that of the industry is 72.64. Be respectful. A liquidity ratio calculated as current assets divided by current liabilities. Calculations and summary conclusions are made There's also a VGM Score ('V' for Value, 'G' for Growth and 'M' for Momentum), which combines the weighted average of the individual style scores into one score. 297.37 while that of the industry is 11.53 most Analytics of shareholders the. Center of everything we do is a strong commitment to independent research and sharing its profitable with. To personal or business websites, Skype/Telegram/WhatsApp etc the companys commitment and towards. 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