GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Tesla Inc (LIM:TSLA) » Definitions » Quick Ratio

Tesla (LIM:TSLA) Quick Ratio : 1.17 (As of Mar. 2024)


View and export this data going back to 2017. Start your Free Trial

What is Tesla Quick Ratio?

The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. It is calculated as a company's Total Current Assets excludes Total Inventories divides by its Total Current Liabilities. Tesla's quick ratio for the quarter that ended in Mar. 2024 was 1.17.

Tesla has a quick ratio of 1.17. It generally indicates good short-term financial strength.

The historical rank and industry rank for Tesla's Quick Ratio or its related term are showing as below:

LIM:TSLA' s Quick Ratio Range Over the Past 10 Years
Min: 0.37   Med: 0.9   Max: 1.81
Current: 1.17

During the past 13 years, Tesla's highest Quick Ratio was 1.81. The lowest was 0.37. And the median was 0.90.

LIM:TSLA's Quick Ratio is ranked better than
57.07% of 1309 companies
in the Vehicles & Parts industry
Industry Median: 1.04 vs LIM:TSLA: 1.17

Tesla Quick Ratio Historical Data

The historical data trend for Tesla's Quick Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Tesla Quick Ratio Chart

Tesla Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Quick Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.80 1.59 1.08 1.05 1.25

Tesla Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Quick Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.04 1.07 1.18 1.25 1.17

Competitive Comparison of Tesla's Quick Ratio

For the Auto Manufacturers subindustry, Tesla's Quick Ratio, along with its competitors' market caps and Quick Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Tesla's Quick Ratio Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Tesla's Quick Ratio distribution charts can be found below:

* The bar in red indicates where Tesla's Quick Ratio falls into.



Tesla Quick Ratio Calculation

The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets.

Tesla's Quick Ratio for the fiscal year that ended in Dec. 2023 is calculated as

Quick Ratio (A: Dec. 2023 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(49616-13626)/28748
=1.25

Tesla's Quick Ratio for the quarter that ended in Mar. 2024 is calculated as

Quick Ratio (Q: Mar. 2024 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(50535-16033)/29453
=1.17

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Tesla  (LIM:TSLA) Quick Ratio Explanation

The quick ratio is more conservative than the Current Ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash. Inventories generally take time to be converted into cash, and if they have to be sold quickly, the company may have to accept a lower price than book value of these inventories. As a result, they are justifiably excluded from assets that are ready sources of immediate cash.

In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. On the other hand, a high or increasing quick ratio generally indicates that a company is experiencing solid top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations. Such companies often have faster inventory turnover and cash conversion cycles.

The higher the quick ratio, the better the company's liquidity position.


Tesla Quick Ratio Related Terms

Thank you for viewing the detailed overview of Tesla's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Tesla (LIM:TSLA) Business Description

Address
1 Tesla Road, Austin, TX, USA, 78725
Founded in 2003 and based in Palo Alto, California, Tesla is a vertically integrated sustainable energy company that also aims to transition the world to electric mobility by making electric vehicles. The company sells solar panels and solar roofs for energy generation plus batteries for stationary storage for residential and commercial properties including utilities. Tesla has multiple vehicles in its fleet, which include luxury and midsize sedans and crossover SUVs. The company also plans to begin selling more affordable sedans and small SUVs, a light truck, a semi truck, and a sports car. Global deliveries in 2022 were a little over 1.3 million vehicles.

Tesla (LIM:TSLA) Headlines

From GuruFocus

Tesla Inc at Milken Institute Asia Summit Transcript

By GuruFocus Research 01-23-2024

Q3 2019 Tesla Inc Earnings Call Transcript

By GuruFocus Research 01-23-2024

Q1 2020 Tesla Inc Earnings Call Transcript

By GuruFocus Research 01-23-2024

Tesla Inc Annual Shareholders Meeting Transcript

By GuruFocus Research 01-23-2024

Q1 2021 Tesla Inc Earnings Call Transcript

By GuruFocus Research 01-23-2024

Q2 2019 Tesla Inc Earnings Call Transcript

By GuruFocus Research 01-23-2024

Tesla Inc Solar Roof Conference Call Transcript

By GuruFocus Research 01-23-2024

Tesla Inc Annual Shareholders Meeting Transcript

By GuruFocus Research 01-23-2024

Q2 2023 Tesla Inc Earnings Call Transcript

By GuruFocus Research 01-23-2024

Q1 2023 Tesla Inc Earnings Call Transcript

By GuruFocus Research 01-23-2024