Tesla (LIM:TSLA) Altman Z-Score

: 11.99 (As of Today)

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Good Sign:

Altman Z-score of 11.93 is strong.

Tesla has a Altman Z-Score of 11.99, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.

The zones of discrimination were as such:

When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.

The historical rank and industry rank for Tesla's Altman Z-Score or its related term are showing as below:

LIM:TSLA' s Altman Z-Score Range Over the Past 10 Years
Min: -2.89 Med: 2.37 Max: 22.81
Current: 11.93

During the past 13 years, Tesla's highest Altman Z-Score was 22.81. The lowest was -2.89. And the median was 2.37.

Tesla Altman Z-Score Historical Data

The historical data trend for Tesla's Altman Z-Score 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 Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Altman Z-Score

1.84

2.25

15.14

22.81

8.39

Tesla Quarterly Data
	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22
Altman Z-Score																22.81	23.51	15.42	17.01	8.39

Competitive Comparison

For the Auto Manufacturers subindustry, Tesla's Altman Z-Score, along with its competitors' market caps and Altman Z-Score 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.

Annual Data Quarterly Data

Tesla Altman Z-Score Distribution

For the Vehicles & Parts industry and Consumer Cyclical sector, Tesla's Altman Z-Score distribution charts can be found below:

* The bar in red indicates where Tesla's Altman Z-Score falls in comparison to its industry or sector. The grey bar indicates the Altman Z-Score's extreme value range as defined by GuruFocus.

Tesla Altman Z-Score Calculation

Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

Tesla's Altman Z-Score for today is calculated with this formula:

1.2

1.4

3.3

0.6

1.0

1.2

0.1726

1.4

0.1565

3.3

0.1689

0.6

16.6906

1.0

0.9894

11.99

Trailing Twelve Months (TTM) ended in Dec. 2022:
Total Assets was $82,338 Mil.
Total Current Assets was $40,917 Mil.
Total Current Liabilities was $26,709 Mil.
Retained Earnings was $12,885 Mil.
Pre-Tax Income was 3983 + 3636 + 2474 + 3626 = $13,719 Mil.
Interest Expense was -33 + -53 + -44 + -61 = $-191 Mil.
Revenue was 24318 + 21454 + 16934 + 18756 = $81,462 Mil.
Market Cap (Today) was $608,204 Mil.
Total Liabilities was $36,440 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1	=	Working Capital	/	Total Assets
	=	(Total Current Assets - Total Current Liabilities)	/	Total Assets
	=	(40917 - 26709)	/	82338
	=	0.1726

X2	=	Retained Earnings	/	Total Assets
	=	12885	/	82338
	=	0.1565

X3	=	Earnings Before Interest and Taxes	/	Total Assets
	=	(Pre-Tax Income - Interest Expense)	/	Total Assets
	=	(13719 - -191)	/	82338
	=	0.1689

X4	=	Market Value Equity	/	Book Value of Total Liabilities
	=	Market Cap	/	Total Liabilities
	=	608203.821	/	36440
	=	16.6906

X5	=	Revenue	/	Total Assets
	=	81462	/	82338
	=	0.9894

The zones of discrimination were as such:

Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones

Tesla has a Altman Z-Score of 11.99 indicating it is in Safe Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.

Tesla (LIM:TSLA) Altman Z-Score Explanation

X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.

X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.

X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.

X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.

X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.

Be Aware

Altman Z-Score does not apply to financial companies.

Tesla Altman Z-Score Related Terms

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

Tesla (LIM:TSLA) Business Description

Industry

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Comparable Companies

Traded in Other Exchanges

TSLA:USA TSLA:Mexico TSLA_KZ:Kazakhstan TSLA:Italy 0R0X:UK TL0:Germany TSLA:Canada TSLA34:Brazil TSLA:Austria TSLA:Argentina

Address

13101 Tesla Road, Austin, TX, USA, 78725

Website

https://www.tesla.com

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.