Question: reponse to the below feedback Great post you have here. I like the way you include Tesla because I think while the numbers look good,
reponse to the below feedback
Great post you have here. I like the way you include Tesla because I think while the numbers look good, there may be some impact due to the current political climate. I found a slightly different D/E ratio for Tesla, but the fact that it is less than 1 is a good thing for Tesla. Because a higher ratio suggests higher risk and the company is financing its growth with debt. However, when a company is in its growth phase, a high D/E ratio might be necessary for that growth. Generally, a good D/E ratio should be around 1 or 1.5. Tesla's D/E ratio suggests a lower risk of loan default, which is good for lenders. Low risk of bankruptcy and Tesla can more easily attract additional capital. But I think this is a ceteris paribus assumption, all things being equal. The year 2025 has so far not been particularly kind to tesla due to political influences.
Ratios | Microsoft | Amazon | Apple | Tesla | Coca-Cola | |
Debt-to-Equity Ratio | 0.39 | 0.91 | 1.19 | 5.41 | 0.66 | 2.81 |
Current Ratio | 1.84 | 1.27 | 1.06 | 0.87 | 2.02 | 1.03 |
Equity Ratio | 0.72 | 0.52 | 0.46 | 0.16 | 0.60 | 0.26 |
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