Working Capital Management Ratios: A Comparative Study between Tesla and NIO

Abstract

The report is about the working capital management of the two renowned companies Tesla and NIO. Tesla is now recognized as a strong supporter for electric car development. In 2015 it became the best-selling switch car in the world, with the legendary vehicle Tesla Model. NIO, on the other hand is a revolutionary and fast-growing electrical (EV) maker in China. In order to do the analysis, ratio analysis has been done to compare the performance of both Tesla and NIO. In order to transform the data in an understandable form, use of graphs have been done understand it in a more appropriate way. The data for the analysis has been taken from the annual reports of Tesla and NIO. The analysis showed that the profits of the company has been noted to increase with time. NIO has also been able to improve its profits but it’s comparatively lower as compared to Tesla. This shows that Tesla has been successfully able to manage its liquidity and profitability, however NIO has filed to manage its profits.