Question
At December 31, 2019, Teslas balance sheet shows: On Balance Sheet: Amount Current portion of debt and finance leases $1,785 Debt and finance leases, net
- At December 31, 2019, Teslas balance sheet shows:
| On Balance Sheet: | Amount |
| Current portion of debt and finance leases | $1,785 |
| Debt and finance leases, net of current portion | $11,634 |
| Total | $13,419 |
In Note 12 Debt, Tesla shows the current amount of debt as $1,399 and the long-term amount as $10,402 for a total of $12,492. Why do these amounts differ from what was shown on the balance sheet?
- In Note 12, Tesla reports how much of the $12,492 is due in each of the next five years and afterwards. What are the annual maturities of debt for each of these years/categories?
| Year | Amount |
| 2020 | |
| 2021 | |
| 2022 | |
| 2023 | |
| 2024 | |
| Thereafter |
3. Compute the following four ratios for 2019 and 2018. Please indicate both the amounts that you used to compute the ratio and the final ratio.
| Ratio: | 2019 | 2018 |
| Debt to Equity | ||
| Return on Assets | ||
| Return on Equity | ||
| Times Interest Earned |
4. Based on your analysis of these four ratios, did Teslas debt coverage improve in the current year? Please do not indicate whether the number computed increased or decreased but interpret what change in the ratios indicates about Teslas debt.
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Financial Management Principles And Practice
Authors: Timothy Gallagher
7th Edition
0996095462, 978-0996095464
