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Tesla Altman Z-Score

: 21.22 (As of Today)
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Good Sign:

Altman Z-score of 21.21 is strong.

Tesla has a Altman Z-Score of 21.22, 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:

NAS:TSLA' s Altman Z-Score Range Over the Past 10 Years
Min: -3.22   Med: 2.11   Max: 21.21
Current: 21.21

-3.22
21.21

During the past 13 years, Tesla's highest Altman Z-Score was 21.21. The lowest was -3.22. And the median was 2.11.


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 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Altman Z-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.28 1.27 1.80 2.21 14.85

Tesla Quarterly Data
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
Altman Z-Score 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 Premium Member Only Premium Member Only Premium Member Only 9.25 14.85 14.18 14.65 16.77

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.

   

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 into.



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:

Z=1.2*X1+1.4*X2+3.3*X3+0.6*X4+1.0*X5
=1.2*0.1202+1.4*-0.0344+3.3*0.0801+0.6*33.4119+1.0*0.81
=21.22

* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.

Trailing Twelve Months (TTM) ended in Sep. 2021:
Total Assets was $57,834 Mil.
Total Current Assets was $25,002 Mil.
Total Current Liabilities was $18,051 Mil.
Retained Earnings was $-1,990 Mil.
Pre-Tax Income was 1882 + 1293 + 533 + 379 = $4,087 Mil.
Interest Expense was -126 + -75 + -99 + -246 = $-546 Mil.
Revenue was 13757 + 11958 + 10389 + 10744 = $46,848 Mil.
Market Cap (Today) was $1,000,519 Mil.
Total Liabilities was $29,945 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
=(25002 - 18051)/57834
=0.1202

X2=Retained Earnings/Total Assets
=-1990/57834
=-0.0344

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(4087 - -546)/57834
=0.0801

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=1000518.944/29945
=33.4119

X5=Revenue/Total Assets
=46848/57834
=0.81

The zones of discrimination were as such:

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

Tesla has a Altman Z-Score of 21.22 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  (NAS: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.

Read more about Altman Z-Score and the original research.


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 Business Description

Tesla logo
Industry
Consumer Cyclical » Vehicles & Parts NAICS : 336211 SIC : 3711
Address
3500 Deer Creek Road, Palo Alto, CA, USA, 94304
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 mid-size sedans and crossover SUVs. The company also plans to begin selling more affordable sedans and small SUVs, a light-truck, semi-truck, and a sports car. Global deliveries in 2020 were roughly 500,000 units.
Executives
Baglino Andrew D officer: SVP Powertrain and Energy Eng. 3500 DEER CREEK ROAD FREMONT CA 94538
Kirkhorn Zachary officer: Chief Financial Officer 3500 DEER CREEK ROAD PALO ALTO CA 94304
Guillen Jerome M officer: President, Automotive 3500 DEER CREEK RD. PALO ALTO CA 94304
Taneja Vaibhav officer: Chief Accounting Officer 3500 DEER CREEK ROAD PALO ALTO CA 94304
Wilson-thompson Kathleen director PO BOX 3599 BATTLE CREEK MI 49016-3599
Musk Kimbal director C/O TESLA MOTORS, INC. 3500 DEER CREEK ROAD PALO ALTO CA 94304
Denholm Robyn M director 4150 NETWORK CIRCLE SANTA CLARA CA 95054
Mizuno Hiromichi director 1-2-33-A504, KOMAZAWA SETAGAYA TOKYO M0 154-0012
Gracias Antonio J. director C/O VALOR EQUITY PARTNERS 200 SOUTH MICHIGAN AVENUE, SUITE 1020 CHICAGO IL 60604
Musk Elon director, 10 percent owner, officer: CEO C/O TESLA MOTORS, INC. 3500 DEER CREEK ROAD PALO ALTO CA 94304
Ellison Lawrence Joseph director C/O DELPHI ASSET MGMT CORPORATION 5525 KIETZKE LANE, SUITE 200 RENO NV 89511
Jurvetson Stephen T director 2882 SAND HILL ROAD, SUITE 150 MENLO PARK CA 94025
Straubel Jeffrey B officer: Chief Technical Officer C/O TESLA MOTORS, INC. 3500 DEER CREEK ROAD PALO ALTO CA 94304
Ehrenpreis Ira Matthew director 100 SHORELINE HWY SUITE 282, BLDG. B MILL VALLEY CA 94941
Buss Brad W director 198 CHAMPION COURT SAN JOSE CA 95134

Tesla Headlines

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