Introduction:
TESLA is an American Car Manufacturing company that designs, manufactures and sells electric cars and related components. The company trades on NASDAQ under the ticker symbol of ‘TSLA’. The company has been operating under losses since 10 years with Net loss for 2012 amounting to $396213.
Analyzing Accounts Payables:
Refering to the Balance Sheet of the company, we find that at the time of the latest available reporting by the company(2012), the total accounts payable were $343180. It was interesting to analyze that the company experienced a 289% increase in accounts payable in comparison to 2011. This increase in account payable will have impact on Liquidity of the company as with higher current liabilities this year both current ratio and quick ratio will decline, which may cause a concern both for the company and investors.
Analyzing Revenue:
Since last 3 years, the revenue of the company has consistently increased and this can be attributed to new models of electric cars being launched by the company every year. During the year 2012, the revenue of the company amounted to $413256 which was 102.33% higher than 2011. The increase in revenue was also experienced during 2011 also when with the turnover of $202242, the company increased its revenue by 75% in comparison to 2010.
Works Cited
Robinson, T. (2011). Financial Analysis Tools. In C. Institute, Financial Reporting and Analysis (pp. 221-245). Boston: Custom.
Yahoo Finance. (n.d.). TESLA INC: INCOME STATEMENT. Retrieved January 14, 2014, from Yahoo Finance: http://in.finance.yahoo.com/q/is?s=TSLA&annual
