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These questions have to be answered for the company called Tesla a comparison of the results of the two fiscal years for the ratios chosen

These questions have to be answered for the company called Tesla

  1. a comparison of the results of the two fiscal years for the ratios chosen (i.e., increase, decrease, ideas as to why this might have occurred)
  2. a comparison to the industry average for the ratios chosen (i.e., how the company compares to the industry and what this means for the company)
  3. What risk is the company facing? Is this true for the entire industry? How can the company mitigate this risk? What is the industry Beta and the company's Beta?
  4. Recommendations for individuals who may be considering investing in the chosen company
  5. Given the model of valuation is the company priced fairly? What recommendations would you make to increase the value of the company (be thorough make specific recommendations tied back to the company's stated financial goals).

Data

1. 2019 Current ratio = Current assets/current laibilities = 10934/8754 = 1.249

2018 Current ratio = Current assets/current laibilities = 9813/6834 = 1.436

2. 2019 Quick ratio = (Current assets-inventories)/current liabilities = (10934-4085)/8754 = 0.782

2018 Quick ratio = (Current assets-inventories)/current liabilities = (9813-3445)/6834 = 0.932

3.2019 Operating margin = ope. profit/net sales = 2660/23640 = 0.113

2018 Operating margin = ope. profit/net sales = 2368/21915 = 0.108

4. 2019 Profit Margin = Net Profit/Net sales = 1977/23640 = 0.084

2018 Profit Margin = Net Profit/Net sales = 1704/21915 = 0.078

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