Calculate the following Profitability ratios for Tesla, Inc. for both 2016 and 2017. Provide an analysis of what these ratios reveal about Tesla Inc.s ability to earn profit.

Profit Margin

Return on Total Assets

Return on Common Stockholders Equity

Consolidated State ments of Cash Flows in thousands) Year Ended December 31 Cash Flows From Operating Activities Net loss 773,046)S (888,663 S (294,040) Adjustments to reconcile net loss to net cash used in operating activities 947,099 334,225 231.931 156.496 Depreciation and amortization Stock-based compensation Amortization of discount on convertible debt Inventory write-downs Loss on disposal of property and equipment 422.590 197,999 72,063 Gain on the acquisition of SolarCity Non-cash interest and other operating activities Changes in operating assets and liabilities, net of effect of business combinations (88,727) 7.775) 26,373 7.471 46,267 (1,573,860) Accounts receivable Inventories and operating lease vehicles Prepaid expenses and other current assets MyPower notes receivable Other assets Accounts payable and accrued liabilities Deferred revenue Customer deposits Resale value guarantee Other long-term liabilities. Net cash used in operating activities (216,565) (2,465,703) (183,658) (1,050,264) (52,821) 750,640 382,962 388361 26,934 32,057 123,829 (4,493 414,856 209,681 322,203 442,295 Cash Flows From Investing Activities Purchases of property and equipment excluding capital leases, net of sales Purchase of solar energy system, leased to be leased Purchases of short-term investments and marketable securities Maturities of short-term marketable securities Maturities of short-term marketable securities Increase in other restricted cash Cash acquired through (used in) business combinations (1,280,802) 969,885) (205,841) 189,131 (1,634,850) (159,6 16,667 (206,149) (1,416,430) (26,441) Net cash used in investing activities (990,444) Cash Flows From Financing Activities Proceeds from issuance of common stock in public offering Proceeds from issuance of convertible and other de Repayments of convertible and other debt Collateralized lease borrowing Proceeds from exercise of stock options and other stock issuance.. Principal payments on capital leases Common stock and debt issuance c Proceeds from issuance of warants Proceeds from issuance of common stock in private placement Purchase of convertible note hedges Proceeds from investment by noncontrolling interests in subsidiaries Distributions paid to noncontrolling interests in subsidiaries 730,000 2.852.964 (1,857,594) 769.709 2,300,000 568,745 106,611 (203,780) 3,271 100.455 (11,179) (46,889) (20,042) (603,428) 201,527 (21250 3,743,976 7.409) Net cash provided by financing activities Effect of exchange rate changes on cash and Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning ofyear Cash and cash equivalents at end of year Supplemental noncash investing activities Shares issued in connection of business combination and assumed vested awards cash equivalents (34,278) 1,059,824 845,889 2,196,308 1,905,713 1, I 96,908 2,145,977 267334 74,749 Acquisition of property and equipment included in accounts payable and accrued liabilities 254,393 50,076 Estimated fair value of facilities under build-to-suit lease Supplemental Disclosures Cash paid during the period for interest Cash paid during the period for taxes, net of refunds 38,693 S 20,539 9,461 The accompanying notes are an integral part of these consolidated financial statements. Consolidated Balance Sheets (in thousands, except per share data) December 31 2016 December 31, 2015 Assets Current assets 1,196,908 22,628 168,965 1,277,838 ,667 782,006 1,791 403 Cash and cash equivalents Restricted cash ,393,216 S 105,519 499,142 2,067,454 94.465 s receiva net Prepaid expenses and other current assets Total current assets Operating lease vehicles, net Solar energy systems, leased and to be leased, net Property, plant and equipment, net Intangible assets, net MyPower customer notes receivable, net of current portion Restricted cash, net of current port Other assets 3,1 34,080 5,919,880 5,982,957 376,145 506,302 268,165 3,403,334 12.816 31,522 46,858 8,067,939 Total assets 22,664,076 Liabilities and Equity Current liabilities 916,148 422.798 423,961 136,831 283,370 627,927 860,34 S 1,210,028 763,126 179,504 663,859 984,211 165,936 5,827,005 Accrued liabilities and other Deferred revenue Resale value guarantees Customer deposits Current portion of long-term debt and capital leases Current portion of solar bonds issued to related partics Total current liabilities Long-term debt and capital leases, net of current portion Solar bonds issued to related parties, net of current portion Convertible senior notes issued to related parties Deferred revenue, net of current portion Resale value guarantees, net of current portion Other long-term liabilities 5,860,049 2,021,093 10,287 851,790 2,210.423 1,891,449 16,750,167 446,105 1,293,741 364,976 6,936,950 Total liabilities Commitments and contingencies (Note 17) Redeemable noncontrolling interests in subsidiaries Convertible senior notes (Notes 13) Stockholders' equity: 367,039 47,.285 Preferred stock; $0.001 par value; 100,000 shares authorized; no shares issued and outstanding Common stock; $0.001 par value; 2,000,000 shares authorized as of December 31, 2016 and 2015; 161,561 and 131,425 shares issued and outstanding as of December 31, 2016 and 2015, respectively Additional paid-in capital Accumulated other comprehensive loss Accumu lated deficit 7,773,727 2,997,237 785,175 3,409,452 (23,740) 3,556) Total stockholders' equity Noncontrolling interests in subsidiaries Total liabilities and equity 22,664,076 8,067,939 The accompanying notes are an integral part of these consolidated financial statements