What is Tesla's debt-to-equity ratio? (2024)

What is Tesla's debt-to-equity ratio?

Tesla's debt to equity for the quarter that ended in Dec. 2023 was 0.15. A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt.

What is Tesla's debt service ratio?

Tesla's operated at median short term debt coverage ratio of 4.4x from fiscal years ending December 2019 to 2023. Looking back at the last 5 years, Tesla's short term debt coverage ratio peaked in December 2022 at 7.4x.

What is an acceptable debt-to-equity ratio?

Generally, a good debt to equity ratio is around 1 to 1.5. However, the ideal debt to equity ratio will vary depending on the industry, as some industries use more debt financing than others.

What is the debt equity ratio answer?

What Is the Debt-to-Equity (D/E) Ratio? The debt-to-equity (D/E) ratio is used to evaluate a company's financial leverage and is calculated by dividing a company's total liabilities by its shareholder equity.

Why is Tesla's debt-to-equity ratio so low?

Once Tesla became highly valued, the company gained access to equity funding instead of typical debt financing. This allowed Tesla to keep debts low, since equity financing doesn't require the same path to repayment as debt financing.

Is Tesla debt-to-equity ratio good?

Long-Term Liabilities To Equity Ratio

Tesla's total long-term liabilities comprised only 0.2X or 20% of its equity, a significantly low ratio. In short, Tesla carries more equity than its long-term liabilities, which the company can pay off if needed.

Is Tesla out of debt?

What Is Tesla's Net Debt? You can click the graphic below for the historical numbers, but it shows that Tesla had US$1.52b of debt in June 2023, down from US$3.15b, one year before. But it also has US$23.1b in cash to offset that, meaning it has US$21.6b net cash.

What is the debt-to-equity ratio for Tesla 2018?

What is Tesla's long term debt to asset ratio?

Tesla's long-term debt to total assets ratio increased from Dec. 2022 (0.05) to Dec. 2023 (0.06). It may suggest that Tesla is progressively becoming more dependent on debt to grow their business.

Is a debt-to-equity ratio of 0.75 good?

Generally, a good debt-to-equity ratio is anything lower than 1.0. A ratio of 2.0 or higher is usually considered risky. If a debt-to-equity ratio is negative, it means that the company has more liabilities than assets—this company would be considered extremely risky.

Is 0.5 a good debt-to-equity ratio?

Generally, a lower ratio is better, as it implies that the company is in less debt and is less risky for lenders and investors. A debt-to-equity ratio of 0.5 or below is considered good.

Is a debt ratio of 75% bad?

Interpreting the Debt Ratio

If the ratio is over 1, a company has more debt than assets. If the ratio is below 1, the company has more assets than debt. Broadly speaking, ratios of 60% (0.6) or more are considered high, while ratios of 40% (0.4) or less are considered low.

What is a good equity ratio?

Still, as a general rule of thumb, most companies aim for an equity ratio of around 50%. Companies with ratios ranging around 50% to 80% tend to be considered “conservative”, while those with ratios between 20% and 40% are considered “leveraged”.

Is a high debt-to-equity ratio good?

The debt-to-equity (D/E) ratio reflects a company's debt status. A high D/E ratio is considered risky for lenders and investors because it suggests that the company is financing a significant amount of its potential growth through borrowing.

What is a good debt-to-equity ratio for banks?

How does Tesla have so little debt?

By reducing its debt levels, Tesla has been able to improve its financial position and increase its flexibility in terms of future financing options. Overall, Tesla's use of equity funding has been a key factor in helping the company to keep its debt low and maintain its financial stability.

Is Tesla doing well financially?

For the full year, Tesla reported net income of almost $15 billion including the one-time tax benefit. Excluding it, the company made $10.88 billion, down 23% from 2022. Gross profit margin was 25.6% in 2022, but that dropped to 18.2% last year.

Does Tesla have a strong balance sheet?

Warren Buffett famously said, 'Volatility is far from synonymous with risk. ' So it seems the smart money knows that debt - which is usually involved in bankruptcies - is a very important factor, when you assess how risky a company is.

How much equity does Elon Musk have of Tesla?

Elon Musk's ownership stake in Tesla is 20.5% and is worth more than $120 billion. A new SEC filing disclosed the stake, which includes more than 300 million options. Musk recently said he is seeking a 25% stake in Tesla so he can have more influence over the company.

How much debt is Tesla in hand?

Tesla reported total debt of 9.573 B for the latest quarter ending December 31, 2023 on its balance sheet.

Does Elon Musk owe debt?

The “world's richest man,” Elon Musk, purchased Twitter (since renamed X) for $44 billion in 2022. It's estimated he holds $13 billion of that amount as debt from bank and other loans, a sum the average working class person would obviously face severe repercussions for.

Is 1.7 a good debt-to-equity ratio?

The debt-to-equity ratio is calculated by dividing a corporation's total liabilities by its shareholder equity. The optimal D/E ratio varies by industry, but it should not be above a level of 2.0.

Who has the most equity in Tesla?

Elon Musk owns the most shares of Tesla (TSLA).

What is Tesla's debt to Ebitda ratio?

What is Amazon's debt-to-equity ratio?

Amazon.com, Inc. (AMZN) had Debt to Equity Ratio of 0.29 for the most recently reported fiscal year, ending 2023-12-31.