1. **Problem Statement:** Calculate the liquidity ratios for Tesla, Inc. for the years 2024 and 2023 using the given financial data. 2. **Formulas and Explanation:** - Current Ratio = $\frac{\text{Total Current Assets}}{\text{Total Current Liabilities}}$ - Quick Ratio = $\frac{\text{Cash and Cash Equivalents} + \text{Short-term investments} + \text{Accounts receivable, net}}{\text{Total Current Liabilities}}$ Liquidity ratios measure a company's ability to meet short-term obligations. The current ratio includes all current assets, while the quick ratio excludes inventory as it is less liquid. 3. **Calculations for 2024:** - Current Ratio = $\frac{58,360}{28,821} \approx 2.03$ - Quick Assets = $16,139 + 20,424 + 4,418 = 40,981$ - Quick Ratio = $\frac{40,981}{28,821} \approx 1.42$ 4. **Calculations for 2023:** - Current Ratio = $\frac{49,616}{28,748} \approx 1.73$ - Quick Assets = $16,398 + 12,696 + 3,508 = 32,602$ - Quick Ratio = $\frac{32,602}{28,748} \approx 1.13$ 5. **Interpretation:** - Both current and quick ratios improved from 2023 to 2024, indicating better liquidity. - A current ratio above 1 means Tesla has more current assets than liabilities. - A quick ratio above 1 also suggests strong short-term financial health excluding inventory. **Final Answer:** - 2024 Current Ratio: approximately 2.03 - 2024 Quick Ratio: approximately 1.42 - 2023 Current Ratio: approximately 1.73 - 2023 Quick Ratio: approximately 1.13 This completes the liquidity ratio analysis for Tesla, Inc.