Question
The following questions are based off of Tesla's real world numbers. 1)Calculate ROE.Disaggregate the rate of return on common shareholders' equity into the profit margin
The following questions are based off of Tesla's real world numbers.
1)Calculate ROE.Disaggregate the rate of return on common shareholders' equity into the profit margin for ROE, total assets turnover, and capital structure leverage components.Comment on likely reasons for the changes over the recent years.
2)Calculate RNOA (return on net operating assets) and disaggregate it into profit margin and asset turnover components.Comment on likely reasons for the changes over the recent years. This must have an income statement and balance sheet broken out into operating versus non-operating columns that tie into the totals as per my examples!
3)Risk analysis:
- Select a few short-term liquidity risk ratios to calculate and then briefly discuss any changes you note regarding short-term liquidity risk.
- Select a few long-term solvency risk ratios to calculate and then briefly discuss any changes you note regarding long-term solvency risk.
4)Quality of accounting information analysis:
Discuss whether there are any items on the income statement that you would adjust for or eliminate to forecast the future profitability of your company.That is, are there transitory items or items you believe management is manipulating to reach a target earnings number.If so, discuss the changes in profitability of your
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