- Long-Term Asset % Buildup
- Current Asset % Decline
- Increased % Deffered Income Tax
- Sizable drop in % Total Equity
General Motors is investing more in the long-term. This could signal coming growth for the company.
- Higher % Inventory than GM
- Higher % Property, Plant, & Equipment
- Extreme amount of Additional Paid-In Capital
More investors were willing to pay above and beyond the par value of Tesla’s stocks compared to GM or Ford
- Trends similar to General Motors
- Less % Inventory on Hand
- Heavier debt financing
Ford comes in at 8% less equity than its competitor, meaning that they are financed heavily by long-term and short-term debt.
- Automotive sales = primary source of revenue
- Disadvantages: high % Selling Cost, low % Operating Profit
- Advantages: Sizable % Deferred Income Tax
- Highest Net Income
- Highest EPS
Their earnings per common share were also the highest in 2015, demonstrating a strong bounce back after the 8 million car recall in early 2014.
- Lowest % Net Income (-23%)
- Lowest % EPS
- Very high % operating cost
- Similar characteristics to General Motors
- No Deferred Income tax
- % hovering right at industry averages
Return on Assets
With such a high Net Income, General Motors was able to achieve the highest ROA of the three analyzed companies at 6%, compared to Ford’s 3% and Tesla’s -3%.
- Deferred Income Taxes
- 3% higher than Industry average
- Demonstrates efficient use of long-term assets.
General Motors shows a promising ability to squeeze every drop out of the capital they are putting in to their business
- GM: 17.06%
- Ford: 4.32%
- Tesla; -29.82%
- High Growth potential
- investor confidence