Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Tesla Inc., liquidity ratios (quarterly data)
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
The liquidity position, as indicated by the presented ratios, demonstrates a generally improving trend over the observed period. All three ratios – current, quick, and cash – exhibit increases from March 31, 2022, through December 31, 2025, suggesting a strengthening ability to meet short-term obligations. However, the rate of improvement varies across the ratios and timeframes.
- Current Ratio
- The current ratio shows a consistent upward trajectory, increasing from 1.35 in March 2022 to 2.16 in December 2025. This indicates a growing margin of current assets over current liabilities. The increase is relatively steady until June 2024, after which it accelerates. A slight dip is observed in March 2024 (1.72) before resuming the upward trend.
- Quick Ratio
- The quick ratio, while also trending upward, exhibits more fluctuation than the current ratio. Starting at 0.95 in March 2022, it rises to 1.53 by December 2025. A notable increase occurs between September 2022 and December 2023, suggesting improved liquidity independent of inventory levels. The ratio experiences a slight decrease in March 2023 (0.93) and March 2024 (1.04) before continuing its overall climb.
- Cash Ratio
- The cash ratio demonstrates the most substantial relative improvement. Beginning at 0.84 in March 2022, it reaches 1.39 in December 2025. This signifies a considerable increase in the proportion of current assets held as cash, providing a strong buffer for immediate obligations. The most significant gains are observed from June 2023 onwards, indicating a deliberate strategy to bolster cash reserves. Similar to the other ratios, a minor decrease is present in March 2024 (0.91) before resuming the upward trend.
Overall, the observed trends suggest a strengthening liquidity profile. The increasing values across all three ratios indicate a reduced risk of short-term solvency issues. The accelerated improvements in the latter part of the period, particularly in the cash ratio, may reflect proactive liquidity management strategies. The minor dips observed in certain quarters warrant further investigation, but do not appear to significantly detract from the overall positive trend.
Current Ratio
Tesla Inc., current ratio calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Current assets | 68,642) | 64,653) | 61,133) | 59,389) | 58,360) | 56,379) | 52,977) | 50,535) | 49,616) | 45,026) | 43,875) | 42,997) | 40,917) | 35,990) | 31,222) | 29,050) | |||||
| Current liabilities | 31,714) | 31,290) | 30,008) | 29,753) | 28,821) | 30,577) | 27,729) | 29,453) | 28,748) | 26,640) | 27,592) | 27,436) | 26,709) | 24,611) | 21,821) | 21,455) | |||||
| Liquidity Ratio | |||||||||||||||||||||
| Current ratio1 | 2.16 | 2.07 | 2.04 | 2.00 | 2.02 | 1.84 | 1.91 | 1.72 | 1.73 | 1.69 | 1.59 | 1.57 | 1.53 | 1.46 | 1.43 | 1.35 | |||||
| Benchmarks | |||||||||||||||||||||
| Current Ratio, Competitors2 | |||||||||||||||||||||
| Ford Motor Co. | — | 1.12 | 1.10 | 1.13 | 1.16 | 1.15 | 1.17 | 1.17 | 1.20 | 1.21 | 1.20 | 1.20 | 1.20 | 1.20 | 1.16 | 1.17 | |||||
| General Motors Co. | 1.17 | 1.23 | 1.22 | 1.21 | 1.13 | 1.21 | 1.18 | 1.16 | 1.08 | 1.14 | 1.15 | 1.10 | 1.10 | 1.14 | 1.15 | 1.11 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Current ratio = Current assets ÷ Current liabilities
= 68,642 ÷ 31,714 = 2.16
2 Click competitor name to see calculations.
The current ratio exhibits a generally positive trend over the analyzed period, indicating improving short-term liquidity. Initial values demonstrate a ratio of 1.35, increasing consistently through the end of 2023 to reach 1.73. Fluctuations occur in subsequent quarters, but the ratio generally remains above 1.70, culminating in a value of 2.16 by the end of the observed timeframe.
- Initial Phase (Mar 31, 2022 – Dec 31, 2022)
- The current ratio experienced steady growth during this period, rising from 1.35 to 1.53. This suggests a consistent improvement in the company’s ability to cover its short-term obligations with its short-term assets. The increases were incremental each quarter.
- Growth Acceleration (Mar 31, 2023 – Dec 31, 2023)
- The rate of increase in the current ratio accelerated between March 2023 and December 2023, moving from 1.57 to 1.73. This indicates a more substantial improvement in short-term liquidity during this timeframe. The largest single-quarter increase occurred between September and December 2023.
- Fluctuations and Continued Strength (Mar 31, 2024 – Dec 31, 2025)
- Following the peak of 1.73, the current ratio experienced a slight decrease to 1.72 in March 2024, before rebounding significantly to 1.91 in June 2024. Subsequent quarters show some variability, with a dip to 1.84 in September 2024, but overall the ratio continues to strengthen, reaching 2.16 by December 2025. This suggests the company maintains a strong liquidity position despite some quarterly variations.
The consistent upward trend in the current ratio suggests effective management of short-term assets and liabilities. The values consistently above 1.0 indicate the company possesses more current assets than current liabilities, providing a buffer against potential short-term financial difficulties. The increase to 2.16 by the end of the period demonstrates a robust liquidity position.
Quick Ratio
Tesla Inc., quick ratio calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Cash and cash equivalents | 16,513) | 18,289) | 15,587) | 16,352) | 16,139) | 18,111) | 14,635) | 11,805) | 16,398) | 15,932) | 15,296) | 16,048) | 16,253) | 19,532) | 18,324) | 17,505) | |||||
| Short-term investments | 27,546) | 23,358) | 21,195) | 20,644) | 20,424) | 15,537) | 16,085) | 15,058) | 12,696) | 10,145) | 7,779) | 6,354) | 5,932) | 1,575) | 591) | 508) | |||||
| Accounts receivable, net | 4,576) | 4,703) | 3,838) | 3,782) | 4,418) | 3,313) | 3,737) | 3,887) | 3,508) | 2,520) | 3,447) | 2,993) | 2,952) | 2,192) | 2,081) | 2,311) | |||||
| Total quick assets | 48,635) | 46,350) | 40,620) | 40,778) | 40,981) | 36,961) | 34,457) | 30,750) | 32,602) | 28,597) | 26,522) | 25,395) | 25,137) | 23,299) | 20,996) | 20,324) | |||||
| Current liabilities | 31,714) | 31,290) | 30,008) | 29,753) | 28,821) | 30,577) | 27,729) | 29,453) | 28,748) | 26,640) | 27,592) | 27,436) | 26,709) | 24,611) | 21,821) | 21,455) | |||||
| Liquidity Ratio | |||||||||||||||||||||
| Quick ratio1 | 1.53 | 1.48 | 1.35 | 1.37 | 1.42 | 1.21 | 1.24 | 1.04 | 1.13 | 1.07 | 0.96 | 0.93 | 0.94 | 0.95 | 0.96 | 0.95 | |||||
| Benchmarks | |||||||||||||||||||||
| Quick Ratio, Competitors2 | |||||||||||||||||||||
| Ford Motor Co. | — | 0.94 | 0.91 | 0.92 | 0.98 | 0.94 | 0.96 | 0.95 | 1.01 | 0.99 | 0.99 | 0.99 | 1.02 | 0.99 | 0.95 | 0.96 | |||||
| General Motors Co. | 0.92 | 0.98 | 0.97 | 0.96 | 0.90 | 0.95 | 0.91 | 0.88 | 0.83 | 0.88 | 0.88 | 0.82 | 0.86 | 0.88 | 0.85 | 0.84 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 48,635 ÷ 31,714 = 1.53
2 Click competitor name to see calculations.
The quick ratio exhibited a generally increasing trend over the observed period, though with some fluctuations. Initially, the ratio remained relatively stable, hovering around 0.95-0.96 from March 31, 2022, through September 30, 2022. A subsequent decline to 0.93 was noted by March 31, 2023, before a period of consistent improvement began.
- Trend Analysis
- From June 30, 2023, through December 31, 2025, the quick ratio demonstrated a clear upward trajectory. It increased from 0.96 to reach a peak of 1.53 by December 31, 2025. This indicates a strengthening ability to meet short-term obligations using highly liquid assets.
The most significant improvement occurred between September 30, 2023 (1.07) and December 31, 2024 (1.42), and continued into the following periods. The ratio surpassed 1.40 and remained above that level for the final four reporting periods. This suggests a substantial enhancement in the company’s short-term liquidity position.
- Component Analysis
- Total quick assets increased consistently over the period, rising from US$20,324 million in March 2022 to US$48,635 million in December 2025. This growth in liquid assets contributed significantly to the improved quick ratio. Current liabilities also increased, but at a slower rate than quick assets, particularly in the latter half of the period. This differential growth rate is a key driver of the observed trend.
A brief dip in the quick ratio was observed between March 31, 2023, and September 30, 2023, coinciding with a period where current liabilities remained relatively flat while quick assets experienced modest growth. However, this was a temporary deviation from the overall positive trend.
- Recent Performance
- The quick ratio’s performance in the most recent periods (March 31, 2025, through December 31, 2025) indicates a robust liquidity position. Values of 1.37, 1.35, 1.48, and 1.53 suggest the company possesses a comfortable margin of safety regarding its short-term liabilities.
Cash Ratio
Tesla Inc., cash ratio calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Cash and cash equivalents | 16,513) | 18,289) | 15,587) | 16,352) | 16,139) | 18,111) | 14,635) | 11,805) | 16,398) | 15,932) | 15,296) | 16,048) | 16,253) | 19,532) | 18,324) | 17,505) | |||||
| Short-term investments | 27,546) | 23,358) | 21,195) | 20,644) | 20,424) | 15,537) | 16,085) | 15,058) | 12,696) | 10,145) | 7,779) | 6,354) | 5,932) | 1,575) | 591) | 508) | |||||
| Total cash assets | 44,059) | 41,647) | 36,782) | 36,996) | 36,563) | 33,648) | 30,720) | 26,863) | 29,094) | 26,077) | 23,075) | 22,402) | 22,185) | 21,107) | 18,915) | 18,013) | |||||
| Current liabilities | 31,714) | 31,290) | 30,008) | 29,753) | 28,821) | 30,577) | 27,729) | 29,453) | 28,748) | 26,640) | 27,592) | 27,436) | 26,709) | 24,611) | 21,821) | 21,455) | |||||
| Liquidity Ratio | |||||||||||||||||||||
| Cash ratio1 | 1.39 | 1.33 | 1.23 | 1.24 | 1.27 | 1.10 | 1.11 | 0.91 | 1.01 | 0.98 | 0.84 | 0.82 | 0.83 | 0.86 | 0.87 | 0.84 | |||||
| Benchmarks | |||||||||||||||||||||
| Cash Ratio, Competitors2 | |||||||||||||||||||||
| Ford Motor Co. | — | 0.36 | 0.33 | 0.32 | 0.36 | 0.34 | 0.33 | 0.33 | 0.40 | 0.41 | 0.42 | 0.41 | 0.45 | 0.45 | 0.42 | 0.46 | |||||
| General Motors Co. | 0.30 | 0.32 | 0.31 | 0.30 | 0.28 | 0.34 | 0.32 | 0.28 | 0.28 | 0.36 | 0.35 | 0.31 | 0.34 | 0.35 | 0.34 | 0.33 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 44,059 ÷ 31,714 = 1.39
2 Click competitor name to see calculations.
The cash ratio exhibited fluctuations over the observed period, generally trending upwards with notable peaks in later quarters. Initially, the ratio demonstrated relative stability, followed by a period of increase, and then sustained levels above 1.0. This suggests a strengthening ability to meet short-term obligations with solely cash and cash equivalents.
- Initial Period (Mar 31, 2022 – Dec 31, 2022)
- The cash ratio began at 0.84 and fluctuated between 0.83 and 0.87 over the first three quarters. A slight decrease to 0.83 was observed by the end of 2022, indicating a marginal weakening in the immediate liquidity position during that period. Total cash assets increased modestly during this timeframe, while current liabilities also rose.
- Strengthening Liquidity (Mar 31, 2023 – Dec 31, 2023)
- From the beginning of 2023, the cash ratio began a more pronounced upward trend. It increased from 0.82 in March to 1.01 by December. This improvement coincided with continued growth in total cash assets and a slower rate of increase in current liabilities. The ratio exceeding 1.0 signifies that the entity held more cash and cash equivalents than current liabilities.
- Sustained High Levels (Mar 31, 2024 – Dec 31, 2025)
- The cash ratio remained above 1.0 throughout the latter part of the period, reaching a high of 1.39 in December 2025. This indicates a consistently strong short-term liquidity position. While current liabilities experienced some fluctuations, total cash assets continued to grow, driving the ratio higher. The increase from 0.91 in March 2024 to 1.39 in December 2025 represents a substantial improvement in the company’s ability to cover its immediate obligations with available cash.
Overall, the trend in the cash ratio suggests improving liquidity. The company has progressively increased its ability to cover short-term liabilities with readily available cash, culminating in a robust position by the end of the analyzed period.