Question
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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