Tesla's recent balance sheet to describe the different forms of liabilities it uses, make sure to break down Tesla's company's debt. Is the debt increasing or decreasing? Does Tesla have enough operating cash to pay maturing debt (remember, maturing debt is most important, because the same way you need money to pay only the mortgage payment that is due and not your entire mortgage balance, a company is relatively OK as long as it can pay the debt that is due in a particular year rather than its entire debt.) Use the debt ratio to show what portions of assets are financed through debt rather than equity. Use the times interest earned ratio to show the number of times over Tesla has its interest obligation covered by earnings before it pays interest and taxes. Use the cash coverage ratio which shows how well Tesla can generate cash to meet its financial obligations. Does it sound like Tesla is going to assume more debt in the future?

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To analyze Teslas liabilities and debt lets first examine its recent balance sheet Teslas Liabilities 1 Current Liabilities These are obligations due ... View the full answer