Instructor: Financial statement analysis
is about studying historical financials
to understand more about a company's business.
How has it evolved in recent years?
What is its current outlook?
Which are the major line items to be considered?
Is the company able to make money?
How liquid is it at the moment?
Is there significant danger
of solvency issues in the future?
What is the ratio between operating income
and interest expenses?
These are some very important questions
a proper financial statement analysis can answer.
Given that one of the main concerns about Tesla
is that it is not financially stable
and continues to burn cash,
it would be very interesting to analyze the company
from multiple sides.
Profitability and growth, liquidity,
working capital, and solvency.
This information will help us understand
Tesla's historical performance, and in addition to that,
will give us important clues
about what can be expected in the future for the company.