The CFO of Tesla, Inc. has asked you to analyze the firms performance in their most recent fiscal year (2019) to help her prepare for the upcoming board meeting. She has to present both the strengths and weaknesses of the firms financial performance in 2019 to Teslas board and is hoping your report will help. The CFO wants you to focus your analysis based on the DuPont model. The benchmarks to be used should include the firms recent history (averages from the previous four years) and the performance of a peer firm (Ford Motor Corporation) in 2019.

Your CFO expects a short description of your analysis (maximum of 2 typed pages, double spaced, font size 12, one inch margins all around) followed an appendix that presents your analysis (excel spreadsheets). She expects your appendix to include the simplified income statements and the simplified balance sheets for both Tesla and Ford, the Dupont analysis diagrams including the subset of ratios (level 1 and level 2), and the complete set of ratios necessary for DuPont analysis (levels 1, 2, and 3). If you have any questions regarding this task please feel free to give her (me) a call or contact her (me) through e-mail.

2015 -0.08% 0.09% 2016 -12.19% Return on Equity (NI/Equity) Operating Return on Equity (OlEquity) 2017 -37.46% 7.16% 2018 -17.50% 3.04% 2019 Average 2015-2018 Ford 2019 -11.54% -16.81% 0.15% 1.54% 3.12% 1.78% 2.20% Return on Assets (NI/Assets) Operating Return on Assets (Ol/Assets) Equity Multiplier (Assets/Equity) -10.99% -8.86% 7.43 -2.98% -2.94% 4.02 -6.84% -5.70% 5.47 -3.28% -0.85% 5.16 -2.51% -0.23% 4.59 -6.02% -4.59% 552.24% 0.02% 0.22% 8.02 Profit Margin (NI/Revenue) Operating Margin (Ol/Revenue) Asset Turnover (Revenue/Asset) -21.97% -17.72% 0.5000 -9.64% -9.53% 0.3089 -16.68% -13.88% 0.4104 -4.08% -1.18% 0.7216 -3.51% -0.33% 0.7164 -13.09% -10.58% 48.52% 0.03% 0.37% 0.6030 Expense Ratios Cost of Revenue/Revenue SG&A Expense/Revenue Other Operating Expenses/Revenue Depreciation and Amortization Expenses/Revenue Non-Operating Expenses/Revenue Interest Expense/Revenue Taxes/Revenue 77.19% 22.79% 17.75% 10.45% -15.20% 2.94% 0.32% 77.16% 20.46% 11.91% 13.53% -1.13% 2.84% 0.39% 81.10% 21.06% 11.72% 13.91% -4.91% 4.01% 0.27% 71.21% 13.21% 6.80% 8.86% -3.50% 3.09% 0.27% 83.44% 10.77% 5.82% 8.76% -3.03% 2.79% 0.45% 76.66% 19.38% 12.05% 11.69% -6.19% 3.22% 0.31% 86.40% 7.16% 6.08% 5.45% -0.78% 0.67% -0.46% Turnover Ratios Revenue/Cash & Equivalents Revenue/Inventory Revenue/Trade and other receivables Revenue/Prepayments and deposits Revenue/Deferred Tax Assets Revenue/Total Current Assets Revenue/Total Non-Current Assets 3.316 3.166 23.941 n/a n/a 1.449 0.763 2.001 3.387 14.028 n/a n/a 1.118 0.427 3.338 5.194 22.833 n/a n/a 1.790 0.532 5.534 6.896 22.614 n/a n/a 2.584 1.001 3.773 6.919 18.563 n/a nla 2.031 1.107 3.547 4.661 20.854 n/a n/a 1.735 0.681 8.907 14.454 2.479 n/a n/a 0.732 0.927 Times Interest Earned Ratio (Operating Income/Interest Expert -6.025 -3.352 -3.465 -0.382 0.117 -3.306 0.547 2015 -0.08% 0.09% 2016 -12.19% Return on Equity (NI/Equity) Operating Return on Equity (OlEquity) 2017 -37.46% 7.16% 2018 -17.50% 3.04% 2019 Average 2015-2018 Ford 2019 -11.54% -16.81% 0.15% 1.54% 3.12% 1.78% 2.20% Return on Assets (NI/Assets) Operating Return on Assets (Ol/Assets) Equity Multiplier (Assets/Equity) -10.99% -8.86% 7.43 -2.98% -2.94% 4.02 -6.84% -5.70% 5.47 -3.28% -0.85% 5.16 -2.51% -0.23% 4.59 -6.02% -4.59% 552.24% 0.02% 0.22% 8.02 Profit Margin (NI/Revenue) Operating Margin (Ol/Revenue) Asset Turnover (Revenue/Asset) -21.97% -17.72% 0.5000 -9.64% -9.53% 0.3089 -16.68% -13.88% 0.4104 -4.08% -1.18% 0.7216 -3.51% -0.33% 0.7164 -13.09% -10.58% 48.52% 0.03% 0.37% 0.6030 Expense Ratios Cost of Revenue/Revenue SG&A Expense/Revenue Other Operating Expenses/Revenue Depreciation and Amortization Expenses/Revenue Non-Operating Expenses/Revenue Interest Expense/Revenue Taxes/Revenue 77.19% 22.79% 17.75% 10.45% -15.20% 2.94% 0.32% 77.16% 20.46% 11.91% 13.53% -1.13% 2.84% 0.39% 81.10% 21.06% 11.72% 13.91% -4.91% 4.01% 0.27% 71.21% 13.21% 6.80% 8.86% -3.50% 3.09% 0.27% 83.44% 10.77% 5.82% 8.76% -3.03% 2.79% 0.45% 76.66% 19.38% 12.05% 11.69% -6.19% 3.22% 0.31% 86.40% 7.16% 6.08% 5.45% -0.78% 0.67% -0.46% Turnover Ratios Revenue/Cash & Equivalents Revenue/Inventory Revenue/Trade and other receivables Revenue/Prepayments and deposits Revenue/Deferred Tax Assets Revenue/Total Current Assets Revenue/Total Non-Current Assets 3.316 3.166 23.941 n/a n/a 1.449 0.763 2.001 3.387 14.028 n/a n/a 1.118 0.427 3.338 5.194 22.833 n/a n/a 1.790 0.532 5.534 6.896 22.614 n/a n/a 2.584 1.001 3.773 6.919 18.563 n/a nla 2.031 1.107 3.547 4.661 20.854 n/a n/a 1.735 0.681 8.907 14.454 2.479 n/a n/a 0.732 0.927 Times Interest Earned Ratio (Operating Income/Interest Expert -6.025 -3.352 -3.465 -0.382 0.117 -3.306 0.547