Want to learn faster?

Get access to this entire course (all at once) and 40+ more practical business courses. Move at your pace with over 250 episodes on finance, management, analytics and more.

Day 15

The Income Statement as a Funnel

Watch the video and scroll down for your homework.

Your Homework

Take a look at TESLA 2022 10-K (or "annual report") and locate the income statement. Create a funnel for Tesla’s income statement.

  1. For every $1 of Total Revenue, How much does Tesla spend on Ingredients?

  2. For every $1 of Total Revenue, How much does Tesla spend on Operations?

  3. For every $1 of Total Revenue, How much does Tesla spend on Taxes, Other?

  4. For every $1 of Total Revenue, How much does Tesla make in Net Income (aka "Bottom Line" Profit)

Scroll down to see answers.

Answers

  1. Total Cost of Revenues/Total Revenues = $60,609 / $81,462 = 74.4% or 74.4 cents on every $1 of sales is spent on Ingredients

  2. Total Operating Expenses/Total Revenues = $7,197 / $81,462 = 8.8% or 8.8 cents on every $1 of sales is spent on Operations

  3. (Interest Expense + Other Expense + Provision for Income Taxes-Interest Income)/Total Revenues = ($191 + 43 + 1132 - 297) / $81,462 = 1.3% or 1.3 cents on very $1 of sales on Taxes and other items

  4. Net Income/Total Revenues = $12,587 $81,462 = 15.5% or 15.5 cents per $1 of Revenue is what Tesla captures in bottom line profit.

Tesla's income statement funnel can now be compared quite easily to any other company's income statement funnel just by making those four simple percentage calculations.

We use cookies to improve your experience and to help us understand how you use our site. Please refer to our cookie notice and privacy statement for more information regarding cookies and other third-party tracking that may be enabled.

Intuit Mailchimp logo
Facebook icon
Instagram icon
YouTube icon
LinkedIn icon

© 2023 Pareto Labs Learning Inc.