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Could you assist? Thank you so much! ---------- 1. Risk and return analysis of Tesla Risk profile: a commonly used measure of systematic risk in
Could you assist? Thank you so much!
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1. Risk and return analysis of Tesla
Risk profile: a commonly used measure of systematic risk in the capital market is beta. Get your stocks beta. If its beta is highly bigger than 1, then your stock has relatively high systematic risk.
- Returns: There are several ways to measure a firms performance.
A). stock market return (past 6 month return, 12 month return and 36 month return);
B). accounting returns, such as return on assets (ROA) and return on equity (ROE).
2. Capital budgeting (asset) analysis of Tesla
-Capital budgeting analysis: you should study the asset part of the balance sheet. In particular, capital expenditures are directly associated with investment decisions. You should get the ratio of capital expenditures over total assets of the firm and compare it with its peers or industry average. Capital expenditures can be found in the cash flow from investing activities in a company's cash flow statement. Different companies highlight capital expenditures in a number of ways, you may see it listed as capital spending, purchases of property, plant, and equipment (PP&E), or acquisition expense. Another item R&D expenditures (if any) is also important. It is expensed, not capitalized. So, you should look at income statement. Again please dont use dollar value of R&D, use the ratio of R&D over total assets instead because ratios are comparable across firms and industries, while dollar values are not. You can also find useful info from Managements Discussion and Analysis Part in the annual/quarterly report published by the firm.
3. Financing (liability) analysis of Tesla
-Financing analysis: you should calculate the firms debt-to-equity ratio, interest coverage ratio, current ratio, etc. to get a sense of the firms long-term and short-term financing status. And compare them with the industry norm
Please provide thr information on these if
possible. Thank you so much.
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