Calculate the following financial ratios and enter them into the table below. Return on Assets = Net
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Question:
Calculate the following financial ratios and enter them into the table below.
- Return on Assets = Net Income / Total Assets
- Return on Equity = Net Income / Equity
- Debt-to-equity Ratio = Total Liabilities / Total Shareholders' Equity
- Current Ratio = Current Assets / Current Liabilities
| Financial Ratios | 2023 | 2022 |
| Return on Assets (ROA) | 366.38% | 260.71% |
| Return on Equity (ROE) | 23.63% | 27.67% |
| Debt-to-equity Ratio (D/E) | 6.03% | 4.95% |
| Current Ratio | 26.88% | 33.33% |
2. What can you learn about the company (Tesla) from thefinancial ratios in Question 1? Do they change year over year?Hint: Try to frame your answer in terms of management effectiveness and/or long-term versus current financial position.
Expert Answer:
From the financial ratios provided for the company Tesla for the years 2023 and 2022 the following o... View the full answer
Related Book For 
Fundamentals Of Investing
ISBN: 9780135175217
14th Edition
Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk
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