Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Tesla Inc., solvency ratios
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Tesla Inc. debt to equity ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Tesla Inc. debt to equity ratio (including operating lease liability) improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Tesla Inc. debt to capital ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Tesla Inc. debt to capital ratio (including operating lease liability) improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Tesla Inc. debt to assets ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Tesla Inc. debt to assets ratio (including operating lease liability) improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Tesla Inc. financial leverage ratio decreased from 2021 to 2022 and from 2022 to 2023. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Tesla Inc. interest coverage ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Tesla Inc. fixed charge coverage ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level. |
Debt to Equity
Tesla Inc., debt to equity calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current portion of debt and finance leases | 2,373) | 1,502) | 1,589) | 2,132) | 1,785) | |
| Debt and finance leases, net of current portion | 2,857) | 1,597) | 5,245) | 9,556) | 11,634) | |
| Total debt | 5,230) | 3,099) | 6,834) | 11,688) | 13,419) | |
| Stockholders’ equity | 62,634) | 44,704) | 30,189) | 22,225) | 6,618) | |
| Solvency Ratio | ||||||
| Debt to equity1 | 0.08 | 0.07 | 0.23 | 0.53 | 2.03 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Ford Motor Co. | 3.49 | 3.21 | 2.85 | 5.27 | 4.68 | |
| General Motors Co. | 1.89 | 1.69 | 1.83 | 2.44 | 2.47 | |
| Debt to Equity, Sector | ||||||
| Automobiles & Components | 1.63 | 1.65 | 1.84 | 2.89 | 3.33 | |
| Debt to Equity, Industry | ||||||
| Consumer Discretionary | 1.42 | 1.61 | 1.56 | 2.26 | 2.44 | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 5,230 ÷ 62,634 = 0.08
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Tesla Inc. debt to equity ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
Debt to Equity (including Operating Lease Liability)
Tesla Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current portion of debt and finance leases | 2,373) | 1,502) | 1,589) | 2,132) | 1,785) | |
| Debt and finance leases, net of current portion | 2,857) | 1,597) | 5,245) | 9,556) | 11,634) | |
| Total debt | 5,230) | 3,099) | 6,834) | 11,688) | 13,419) | |
| Operating lease liabilities, current portion | 672) | 485) | 368) | 286) | 228) | |
| Operating lease liabilities, net of current portion | 3,671) | 2,164) | 1,671) | 1,254) | 956) | |
| Total debt (including operating lease liability) | 9,573) | 5,748) | 8,873) | 13,228) | 14,603) | |
| Stockholders’ equity | 62,634) | 44,704) | 30,189) | 22,225) | 6,618) | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | 0.15 | 0.13 | 0.29 | 0.60 | 2.21 | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| Ford Motor Co. | 3.53 | 3.25 | 2.87 | 5.31 | 4.72 | |
| General Motors Co. | 1.91 | 1.71 | 1.85 | 2.47 | 2.50 | |
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Automobiles & Components | 1.67 | 1.68 | 1.87 | 2.93 | 3.38 | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Consumer Discretionary | 1.77 | 2.00 | 1.93 | 2.69 | 2.70 | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity
= 9,573 ÷ 62,634 = 0.15
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Tesla Inc. debt to equity ratio (including operating lease liability) improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
Debt to Capital
Tesla Inc., debt to capital calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current portion of debt and finance leases | 2,373) | 1,502) | 1,589) | 2,132) | 1,785) | |
| Debt and finance leases, net of current portion | 2,857) | 1,597) | 5,245) | 9,556) | 11,634) | |
| Total debt | 5,230) | 3,099) | 6,834) | 11,688) | 13,419) | |
| Stockholders’ equity | 62,634) | 44,704) | 30,189) | 22,225) | 6,618) | |
| Total capital | 67,864) | 47,803) | 37,023) | 33,913) | 20,037) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.08 | 0.06 | 0.18 | 0.34 | 0.67 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Ford Motor Co. | 0.78 | 0.76 | 0.74 | 0.84 | 0.82 | |
| General Motors Co. | 0.65 | 0.63 | 0.65 | 0.71 | 0.71 | |
| Debt to Capital, Sector | ||||||
| Automobiles & Components | 0.62 | 0.62 | 0.65 | 0.74 | 0.77 | |
| Debt to Capital, Industry | ||||||
| Consumer Discretionary | 0.59 | 0.62 | 0.61 | 0.69 | 0.71 | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Debt to capital = Total debt ÷ Total capital
= 5,230 ÷ 67,864 = 0.08
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Tesla Inc. debt to capital ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
Debt to Capital (including Operating Lease Liability)
Tesla Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current portion of debt and finance leases | 2,373) | 1,502) | 1,589) | 2,132) | 1,785) | |
| Debt and finance leases, net of current portion | 2,857) | 1,597) | 5,245) | 9,556) | 11,634) | |
| Total debt | 5,230) | 3,099) | 6,834) | 11,688) | 13,419) | |
| Operating lease liabilities, current portion | 672) | 485) | 368) | 286) | 228) | |
| Operating lease liabilities, net of current portion | 3,671) | 2,164) | 1,671) | 1,254) | 956) | |
| Total debt (including operating lease liability) | 9,573) | 5,748) | 8,873) | 13,228) | 14,603) | |
| Stockholders’ equity | 62,634) | 44,704) | 30,189) | 22,225) | 6,618) | |
| Total capital (including operating lease liability) | 72,207) | 50,452) | 39,062) | 35,453) | 21,221) | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 0.13 | 0.11 | 0.23 | 0.37 | 0.69 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| Ford Motor Co. | 0.78 | 0.76 | 0.74 | 0.84 | 0.83 | |
| General Motors Co. | 0.66 | 0.63 | 0.65 | 0.71 | 0.71 | |
| Debt to Capital (including Operating Lease Liability), Sector | ||||||
| Automobiles & Components | 0.63 | 0.63 | 0.65 | 0.75 | 0.77 | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Consumer Discretionary | 0.64 | 0.67 | 0.66 | 0.73 | 0.73 | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 9,573 ÷ 72,207 = 0.13
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Tesla Inc. debt to capital ratio (including operating lease liability) improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
Debt to Assets
Tesla Inc., debt to assets calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current portion of debt and finance leases | 2,373) | 1,502) | 1,589) | 2,132) | 1,785) | |
| Debt and finance leases, net of current portion | 2,857) | 1,597) | 5,245) | 9,556) | 11,634) | |
| Total debt | 5,230) | 3,099) | 6,834) | 11,688) | 13,419) | |
| Total assets | 106,618) | 82,338) | 62,131) | 52,148) | 34,309) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.05 | 0.04 | 0.11 | 0.22 | 0.39 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Ford Motor Co. | 0.55 | 0.54 | 0.54 | 0.60 | 0.60 | |
| General Motors Co. | 0.45 | 0.43 | 0.45 | 0.47 | 0.45 | |
| Debt to Assets, Sector | ||||||
| Automobiles & Components | 0.42 | 0.43 | 0.45 | 0.51 | 0.52 | |
| Debt to Assets, Industry | ||||||
| Consumer Discretionary | 0.35 | 0.36 | 0.37 | 0.42 | 0.44 | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Debt to assets = Total debt ÷ Total assets
= 5,230 ÷ 106,618 = 0.05
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Tesla Inc. debt to assets ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
Debt to Assets (including Operating Lease Liability)
Tesla Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current portion of debt and finance leases | 2,373) | 1,502) | 1,589) | 2,132) | 1,785) | |
| Debt and finance leases, net of current portion | 2,857) | 1,597) | 5,245) | 9,556) | 11,634) | |
| Total debt | 5,230) | 3,099) | 6,834) | 11,688) | 13,419) | |
| Operating lease liabilities, current portion | 672) | 485) | 368) | 286) | 228) | |
| Operating lease liabilities, net of current portion | 3,671) | 2,164) | 1,671) | 1,254) | 956) | |
| Total debt (including operating lease liability) | 9,573) | 5,748) | 8,873) | 13,228) | 14,603) | |
| Total assets | 106,618) | 82,338) | 62,131) | 52,148) | 34,309) | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.09 | 0.07 | 0.14 | 0.25 | 0.43 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| Ford Motor Co. | 0.55 | 0.55 | 0.54 | 0.61 | 0.61 | |
| General Motors Co. | 0.45 | 0.44 | 0.45 | 0.47 | 0.46 | |
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Automobiles & Components | 0.43 | 0.44 | 0.46 | 0.52 | 0.53 | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Consumer Discretionary | 0.44 | 0.45 | 0.45 | 0.50 | 0.48 | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 9,573 ÷ 106,618 = 0.09
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Tesla Inc. debt to assets ratio (including operating lease liability) improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
Financial Leverage
Tesla Inc., financial leverage calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Total assets | 106,618) | 82,338) | 62,131) | 52,148) | 34,309) | |
| Stockholders’ equity | 62,634) | 44,704) | 30,189) | 22,225) | 6,618) | |
| Solvency Ratio | ||||||
| Financial leverage1 | 1.70 | 1.84 | 2.06 | 2.35 | 5.18 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Ford Motor Co. | 6.39 | 5.92 | 5.30 | 8.71 | 7.79 | |
| General Motors Co. | 4.25 | 3.89 | 4.10 | 5.22 | 5.46 | |
| Financial Leverage, Sector | ||||||
| Automobiles & Components | 3.85 | 3.87 | 4.07 | 5.66 | 6.38 | |
| Financial Leverage, Industry | ||||||
| Consumer Discretionary | 4.04 | 4.43 | 4.25 | 5.41 | 5.56 | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 106,618 ÷ 62,634 = 1.70
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Tesla Inc. financial leverage ratio decreased from 2021 to 2022 and from 2022 to 2023. |
Interest Coverage
Tesla Inc., interest coverage calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income (loss) attributable to common stockholders | 14,997) | 12,556) | 5,519) | 721) | (862) | |
| Add: Net income attributable to noncontrolling interest | (23) | 31) | 125) | 141) | 87) | |
| Add: Income tax expense | (5,001) | 1,132) | 699) | 292) | 110) | |
| Add: Interest expense | 156) | 191) | 371) | 748) | 685) | |
| Earnings before interest and tax (EBIT) | 10,129) | 13,910) | 6,714) | 1,902) | 20) | |
| Solvency Ratio | ||||||
| Interest coverage1 | 64.93 | 72.83 | 18.10 | 2.54 | 0.03 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Ford Motor Co. | 4.05 | -1.40 | 10.86 | 0.32 | 0.37 | |
| General Motors Co. | 12.42 | 12.75 | 14.39 | 8.37 | 10.51 | |
| Interest Coverage, Sector | ||||||
| Automobiles & Components | 11.28 | 10.15 | 12.79 | 3.33 | 3.47 | |
| Interest Coverage, Industry | ||||||
| Consumer Discretionary | 10.61 | 7.74 | 10.83 | 6.26 | 9.85 | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Interest coverage = EBIT ÷ Interest expense
= 10,129 ÷ 156 = 64.93
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Tesla Inc. interest coverage ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
Fixed Charge Coverage
Tesla Inc., fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income (loss) attributable to common stockholders | 14,997) | 12,556) | 5,519) | 721) | (862) | |
| Add: Net income attributable to noncontrolling interest | (23) | 31) | 125) | 141) | 87) | |
| Add: Income tax expense | (5,001) | 1,132) | 699) | 292) | 110) | |
| Add: Interest expense | 156) | 191) | 371) | 748) | 685) | |
| Earnings before interest and tax (EBIT) | 10,129) | 13,910) | 6,714) | 1,902) | 20) | |
| Add: Operating lease expense | 1,153) | 798) | 627) | 451) | 426) | |
| Earnings before fixed charges and tax | 11,282) | 14,708) | 7,341) | 2,353) | 446) | |
| Interest expense | 156) | 191) | 371) | 748) | 685) | |
| Operating lease expense | 1,153) | 798) | 627) | 451) | 426) | |
| Fixed charges | 1,309) | 989) | 998) | 1,199) | 1,111) | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | 8.62 | 14.87 | 7.36 | 1.96 | 0.40 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| Ford Motor Co. | 3.11 | -0.75 | 8.91 | 0.47 | 0.57 | |
| General Motors Co. | 8.39 | 4.97 | 9.47 | 5.79 | 6.46 | |
| Fixed Charge Coverage, Sector | ||||||
| Automobiles & Components | 6.28 | 4.96 | 8.76 | 2.60 | 2.51 | |
| Fixed Charge Coverage, Industry | ||||||
| Consumer Discretionary | 4.73 | 3.37 | 5.01 | 3.19 | 4.32 | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 11,282 ÷ 1,309 = 8.62
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Tesla Inc. fixed charge coverage ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level. |