Using the fiscal year financial data from 2012 to 2015, determine how the acquisition of SolarCity would affect Tesla’s liquidity risk, financial leverage, and profitability, based on the computed ratios provided in the Excel template? What do the trends in the liquidity, leverage, and profitability ratios indicate for both Tesla and SolarCity, including the combined company ratios? Focus your analysis on the current ratio, quick ratio, interest coverage, debt-to-equity, debt-to-total assets, and leverage (total assets-to-total equity) ratios.

Answer rating: 100% (QA)

To analyze the effects of the acquisition of SolarCity on Teslas liquidity risk financial leverage and profitability as well as the trends in these ra... View the full answer