Jhenfher Gerardo Montiel
Current Ratios Tesla
Franklin University
Dr. Joel Light, Professor
Tesla’s Current ratio
Teslas have been a company with many ups and downs when it comes to the car industry in
2017 the current ratio for this company was 1.13 and the following up went down to 0.97. As
testing and creation of a brand-new technology to have a fully electric functioning car was very
hard to balance cost-effectively the company suffered. This didn’t stop there as we go along, we
can see current ratios drop even more to 0.73 at some point which could be alarming but there is
a lot of risks and a big reward if they finally were capable of Production a car that will not only
put them in top of electric car industry but pioneering this Industry
Tesla’s current ratio is above 1.0 which means that they have a current asset to cover the
current liabilities for the next 12 months. As of 2020 4Q, Tesla’s adjusted current ratio reached a
new high at 2.22, slightly higher than the non-adjusted ratio. In reality, Tesla’s liquidity is much