Tesla, Inc. 10-K form for the fiscal year ended 2021-12-31, page 49: Tesla, Inc.

 Consolidated Balance Sheets

 (in millions, except per share data)
    |    |                                                                                                                                                                  |              |        |              |    |        |    |
|---:|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------|:-------------|:-------|:-------------|:---|:-------|:---|
|  1 |                                                                                                                                                                  | December 31, |        | December 31, |    |        |    |
|  2 |                                                                                                                                                                  | 2021         |        | 2020         |    |        |    |
|  3 | Assets                                                                                                                                                           |              |        |              |    |        |    |
|  4 | Current assets                                                                                                                                                   |              |        |              |    |        |    |
|  5 | Cash and cash equivalents                                                                                                                                        | $            | 17,576 |              | $  | 19,384 |    |
|  6 | Short-term marketable securities                                                                                                                                 |              | 131    |              |    | -      |    |
|  7 | Accounts receivable, net                                                                                                                                         |              | 1,913  |              |    | 1,886  |    |
|  8 | Inventory                                                                                                                                                        |              | 5,757  |              |    | 4,101  |    |
|  9 | Prepaid expenses and other current assets                                                                                                                        |              | 1,723  |              |    | 1,346  |    |
| 10 | Total current assets                                                                                                                                             |              | 27,100 |              |    | 26,717 |    |
| 11 | Operating lease vehicles, net                                                                                                                                    |              | 4,511  |              |    | 3,091  |    |
| 12 | Solar energy systems, net                                                                                                                                        |              | 5,765  |              |    | 5,979  |    |
| 13 | Property, plant and equipment, net                                                                                                                               |              | 18,884 |              |    | 12,747 |    |
| 14 | Operating lease right-of-use assets                                                                                                                              |              | 2,016  |              |    | 1,558  |    |
| 15 | Digital assets, net                                                                                                                                              |              | 1,260  |              |    | -      |    |
| 16 | Intangible assets, net                                                                                                                                           |              | 257    |              |    | 313    |    |
| 17 | Goodwill                                                                                                                                                         |              | 200    |              |    | 207    |    |
| 18 | Other non-current assets                                                                                                                                         |              | 2,138  |              |    | 1,536  |    |
| 19 | Total assets                                                                                                                                                     | $            | 62,131 |              | $  | 52,148 |    |
| 20 | Liabilities                                                                                                                                                      |              |        |              |    |        |    |
| 21 | Current liabilities                                                                                                                                              |              |        |              |    |        |    |
| 22 | Accounts payable                                                                                                                                                 | $            | 10,025 |              | $  | 6,051  |    |
| 23 | Accrued liabilities and other                                                                                                                                    |              | 5,719  |              |    | 3,855  |    |
| 24 | Deferred revenue                                                                                                                                                 |              | 1,447  |              |    | 1,458  |    |
| 25 | Customer deposits                                                                                                                                                |              | 925    |              |    | 752    |    |
| 26 | Current portion of debt and finance leases                                                                                                                       |              | 1,589  |              |    | 2,132  |    |
| 27 | Total current liabilities                                                                                                                                        |              | 19,705 |              |    | 14,248 |    |
| 28 | Debt and finance leases, net of current portion                                                                                                                  |              | 5,245  |              |    | 9,556  |    |
| 29 | Deferred revenue, net of current portion                                                                                                                         |              | 2,052  |              |    | 1,284  |    |
| 30 | Other long-term liabilities                                                                                                                                      |              | 3,546  |              |    | 3,330  |    |
| 31 | Total liabilities                                                                                                                                                |              | 30,548 |              |    | 28,418 |    |
| 32 | Commitments and contingencies (Note 15)                                                                                                                          |              |        |              |    |        |    |
| 33 | Redeemable noncontrolling interests in subsidiaries                                                                                                              |              | 568    |              |    | 604    |    |
| 34 | Convertible senior notes (Note 11)                                                                                                                               |              | -      |              |    | 51     |    |
| 35 | Equity                                                                                                                                                           |              |        |              |    |        |    |
| 36 | Stockholders' equity                                                                                                                                             |              |        |              |    |        |    |
| 37 | Preferred stock; $0.001 par value; 100 shares authorized; no shares issued and outstanding                                                                       |              | -      |              |    | -      |    |
| 38 | Common stock; $0.001 par value; 2,000 shares authorized; 1,033 and 960 shares issued and outstanding as of December 31, 2021 and December 31, 2020, respectively |              | 1      |              |    | 1      |    |
| 39 | Additional paid-in capital                                                                                                                                       |              | 29,803 |              |    | 27,260 |    |
| 40 | Accumulated other comprehensive income                                                                                                                           |              | 54     |              |    | 363    |    |
| 41 | Retained earnings (accumulated deficit)                                                                                                                          |              | 331    |              |    | (5,399 | )  |
| 42 | Total stockholders' equity                                                                                                                                       |              | 30,189 |              |    | 22,225 |    |
| 43 | Noncontrolling interests in subsidiaries                                                                                                                         |              | 826    |              |    | 850    |    |
| 44 | Total liabilities and equity                                                                                                                                     | $            | 62,131 |              | $  | 52,148 |    |
 
The accompanying notes are an integral part of these consolidated financial statements.
 49

, Tesla, Inc. 10-K form for the fiscal year ended 2021-12-31, page 50: Tesla, Inc.
 

Consolidated Statements of Operations

 (in millions, except per share data)
    |    |                                                                                                             |                         |        |    |      |    |        |      |    |        |    |
|---:|:------------------------------------------------------------------------------------------------------------|:------------------------|:-------|:---|:-----|:---|:-------|:-----|:---|:-------|:---|
|  1 |                                                                                                             | Year Ended December 31, |        |    |      |    |        |      |    |        |    |
|  2 |                                                                                                             | 2021                    |        |    | 2020 |    |        | 2019 |    |        |    |
|  3 | Revenues                                                                                                    |                         |        |    |      |    |        |      |    |        |    |
|  4 | Automotive sales                                                                                            | $                       | 44,125 |    |      | $  | 24,604 |      | $  | 19,358 |    |
|  5 | Automotive regulatory credits                                                                               |                         | 1,465  |    |      |    | 1,580  |      |    | 594    |    |
|  6 | Automotive leasing                                                                                          |                         | 1,642  |    |      |    | 1,052  |      |    | 869    |    |
|  7 | Total automotive revenues                                                                                   |                         | 47,232 |    |      |    | 27,236 |      |    | 20,821 |    |
|  8 | Energy generation and storage                                                                               |                         | 2,789  |    |      |    | 1,994  |      |    | 1,531  |    |
|  9 | Services and other                                                                                          |                         | 3,802  |    |      |    | 2,306  |      |    | 2,226  |    |
| 10 | Total revenues                                                                                              |                         | 53,823 |    |      |    | 31,536 |      |    | 24,578 |    |
| 11 | Cost of revenues                                                                                            |                         |        |    |      |    |        |      |    |        |    |
| 12 | Automotive sales                                                                                            |                         | 32,415 |    |      |    | 19,696 |      |    | 15,939 |    |
| 13 | Automotive leasing                                                                                          |                         | 978    |    |      |    | 563    |      |    | 459    |    |
| 14 | Total automotive cost of revenues                                                                           |                         | 33,393 |    |      |    | 20,259 |      |    | 16,398 |    |
| 15 | Energy generation and storage                                                                               |                         | 2,918  |    |      |    | 1,976  |      |    | 1,341  |    |
| 16 | Services and other                                                                                          |                         | 3,906  |    |      |    | 2,671  |      |    | 2,770  |    |
| 17 | Total cost of revenues                                                                                      |                         | 40,217 |    |      |    | 24,906 |      |    | 20,509 |    |
| 18 | Gross profit                                                                                                |                         | 13,606 |    |      |    | 6,630  |      |    | 4,069  |    |
| 19 | Operating expenses                                                                                          |                         |        |    |      |    |        |      |    |        |    |
| 20 | Research and development                                                                                    |                         | 2,593  |    |      |    | 1,491  |      |    | 1,343  |    |
| 21 | Selling, general and administrative                                                                         |                         | 4,517  |    |      |    | 3,145  |      |    | 2,646  |    |
| 22 | Restructuring and other                                                                                     |                         | (27    | )  |      |    | -      |      |    | 149    |    |
| 23 | Total operating expenses                                                                                    |                         | 7,083  |    |      |    | 4,636  |      |    | 4,138  |    |
| 24 | Income (loss) from operations                                                                               |                         | 6,523  |    |      |    | 1,994  |      |    | (69    | )  |
| 25 | Interest income                                                                                             |                         | 56     |    |      |    | 30     |      |    | 44     |    |
| 26 | Interest expense                                                                                            |                         | (371   | )  |      |    | (748   | )    |    | (685   | )  |
| 27 | Other income (expense), net                                                                                 |                         | 135    |    |      |    | (122   | )    |    | 45     |    |
| 28 | Income (loss) before income taxes                                                                           |                         | 6,343  |    |      |    | 1,154  |      |    | (665   | )  |
| 29 | Provision for income taxes                                                                                  |                         | 699    |    |      |    | 292    |      |    | 110    |    |
| 30 | Net income (loss)                                                                                           |                         | 5,644  |    |      |    | 862    |      |    | (775   | )  |
| 31 | Net income attributable to noncontrolling interests and redeemable noncontrolling interests in subsidiaries |                         | 125    |    |      |    | 141    |      |    | 87     |    |
| 32 | Net income (loss) attributable to common stockholders                                                       | $                       | 5,519  |    |      | $  | 721    |      | $  | (862   | )  |
| 34 | Net income (loss) per share of common stock attributable to common stockholders                             |                         |        |    |      |    |        |      |    |        |    |
| 35 | Basic                                                                                                       | $                       | 5.60   |    |      | $  | 0.74   |      | $  | (0.98  | )  |
| 36 | Diluted                                                                                                     | $                       | 4.90   |    |      | $  | 0.64   |      | $  | (0.98  | )  |
| 37 | Weighted average shares used in computing net income (loss) per share of common stock                       |                         |        |    |      |    |        |      |    |        |    |
| 38 | Basic                                                                                                       |                         | 986    |    |      |    | 933    |      |    | 887    |    |
| 39 | Diluted                                                                                                     |                         | 1,129  |    |      |    | 1,083  |      |    | 887    |    |
 
The accompanying notes are an integral part of these consolidated financial statements.
 50



Question: What does the change in Tesla's accounts receivable turnover ratio from 2019 to 2020 indicate about its approach to credit and collections?
Answer: The accounts receivable turnover ratio decreased from 18.56 in 2019 to 16.73 in 2020, signaling reduced efficiency in collecting payments from customers. This suggests the need for improvements in credit and collection practices.