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After literature, Research method, Analysis & Discussion and finally ends with conclusion. Financial statements Analysis are useful in revealing the salient features and highlight significant aspects of financial position, operational results and also helps in identifying the strengths and weaknesses of a business (Nuhu, 2014). This study is an attempt to find answer/s to this question through Financial Statements analysis taking last three financial years i.e.
Custom financial reports are for investors as well as finance students looking for in-depth, expert analysis on specific topics relevant to your needs! This company continuously sufferings with losses and hot news in catching the attention of various stake holders in the market.
Please upgrade to one of the following browsers: Access insights and guidance from our Wall Street pros. On 23rd Feb 2017, Tesla, one of the most prominent names in the electric car industry declared yet another disappointing financials in the annual report for the year 2015 & 2016.
(Amoa-gyarteng, 2014). HOLD. A sales growth rate that exceeds the subsector implies that a company is gaining market share.
The company should aim to reduce the same to improve upon its inventory turnover ratio. The assets which were acquired in 2017 has helped in improving this ratio.
The Electric Vehicle industry is expected to grow at CAGR of 23% by the year 2021. They are Financial Statements Misrepresentation, Corruption and Asset Misappropriation. Financial Analysis. How about projected revenues for the firm? Our Customized financial reports allow, Tesla’s stock price was $99.72 as of June 20, Tesla Financial Ratio Summary and Analysis, Alphabet (Google) Financial Report and Analysis. (2018).
This helps ensure that the financial information collected and reported is … Ofori, E. (2016). Tesla had a quick ratio ending 2015 at .54. In the next year, ending 2016, the percent of sales for Accounts Receivable would grow substantially to 7.1%.
Surprisingly, only 2016 it has 2.17 (Table 2) that is greater the ideal ratio.
The analysts had already named the company as one the potential candidates for the bankruptcy.
As compared to revenues, the percentage rate would be 77.2%. Tesla should have looked various avenues for reducing the cost of revenues such as buying raw materials with negotiated prices or should have searched for alternative sources of procurement of raw materials, might have used innovative technology for reducing production costs or adapt revised re-engineering process and other measures to control the same which are not happening over the years. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. There is an improvement by 1.18 times in 2017 as compared to 2016 and 1.602 times as compared to 2015. Each section includes an “in other words” segment. Each Public Company Financial Report will include: Need a Financial Report on Tesla for the last two years? This will inevitably drive the Corporation to increase prices or do a better job negotiating raw material cost for their cars and other products.
There are some tools and techniques available in forensic accounting to detect financial statementss misrepresentation apart from the popular techniques of financial statements analysis. Next Paul Borosky, MBA., summarized their financial information and input it into a proprietary financial model, which shows their income statement and balance sheet trends as well as calculations for Tesla's financial ratios, and financial ratio trends covering 5 years.
Similarly, Return on Equity ratio is also negative for the company for the past 3 years due to the net loss made by the company.
Inventory Turnover ratio has shown a consistent increase in the efficiency of turning its inventory into sales.
When it comes to Cash return to Revenue, the company has been maintain huge closing cash and bank balances all along and this is the reason for this ratio to be positive. Forensic accounting education in UAE: An exploratory study with diverse stakeholders.