Purpose: To analyze performance and interpret the financial statements of a company

Methodology: Select the financial statements (Balance Sheet and Income Statement) of the Tesla company. You will need the statements for three consecutive years for that company. You can use the following sources to identify your company.

• Google Search
• Other textbooks,
• Annual Reports of companies
• Library search
• SEDAR

Identify the following characteristics about your company What industry does it operate in?

• Financial trends in the industry Who are some competitors?
• Other important information?

Ratios to calculate and interpret for the three years.

• Current Ratio
• Quick (Acid Test) Ratio
• Debt to Equity Ratio
• Return on Equity
• Return on Sales
• Inventory Turnover
• Return on assets
• Asset utilization ratio

Final Report: You are taking the position of a Financial Analyst at a bank and you are preparing

this report to make a recommendation on an application for a major loan. The loans officer at the bank would like you to summarize the performance of your company and make a recommendation to the bank.

Your report should include

• Characteristics about your company as described above.
• Copies of Financial statements of your Company (all three years)
• Calculations for all ratios of company all three years as described above.
• Interpretations of company ratios:

• What is the ratio measuring?
• Is the three-year trend positiveegativeeutral?

• Recommendation to the loan officer. Grant the loan, why or why not? If yes could changes be made to strengthen the financial position further for a larger loan? If not, what are areas of improvement?

Attach the balance sheet and financial trend

12/31/2017 12/31/2016 12/31/2019 34,309,000 12/31/2018 29,739,614 28,655,372 22,664,076 26,842,000 23,981,974 23,420,784 17,125,990 7,467,000 5,757,640 5,234,588 5,538,086 18,252,000 14,326,915 13,655,631 10,731,195 Breakdown > Total Assets > Total Liabilities Net Minority Int... > Total Equity Gross Minority Inte... Total Capitalization Common Stock Equity Capital Lease Obligations Net Tangible Assets Working Capital Invested Capital 6,618,000 4,923,243 4,237,242 4,752,911 1,050,000 1,855,900 1,801,010 1,459,684 6,081,000 4,572,592 3.815,503 4,376,766 1,436,000 -1,685,828 -1,104,150 432,791 20,037,000 16,894,614 14,552,180 11,881,342 Tangible Book Value 6,081,000 4,572,592 3,815,503 4,376,766 Total Debt 14,469,000 13,827,271 12,115,948 8,588,115 Net Debt 7,151,000 8,285,753 6,947,024 3,735,215 Share issued 905,310 863,013 843,985 807,805 Ordinary Shares Number 905,310 863,013 843,985 807,805