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Calculate the following financial ratios and enter them into the table below. Return on Assets = Net Income / Total Assets Return on Equity =

Calculate the following financial ratios and enter them into the table below.

  • Return on Assets = Net Income / Total Assets
  • Return on Equity = Net Income / Equity
  • Debt-to-equity Ratio = Total Liabilities / Total Shareholders' Equity
  • Current Ratio = Current Assets / Current Liabilities


Financial Ratios 2023 2022
Return on Assets (ROA) 366.38% 260.71%
Return on Equity (ROE) 23.63% 27.67%
Debt-to-equity Ratio (D/E) 6.03% 4.95%
Current Ratio 26.88% 33.33%


2. What can you learn about the company (Tesla) from thefinancial ratios in Question 1? Do they change year over year?Hint: Try to frame your answer in terms of management effectiveness and/or long-term versus current financial position.

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