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Day 16

Income Statement Changes Over Time

Watch the video and scroll down for your homework.

Your Homework

Take a look at TESLA 2022 10-K (or "annual report") and locate their Income Statement. Calculate the following:

  1. % change in Revenue from 2021 to 2022.

  2. % change in Gross Margin (aka gross profit) from 2021 to 2022.

  3. % change in Operating Income from 2021 to 2022.

  4. % change in Net Income from 2021 to 2022.

Scroll down to see answers.

Answers

  1. % change in Revenue = $81,462 / $53,823 - 1 = 51%

  2. % change in Gross Profit = $20,853 / $13,606 - 1 = 53%

  3. % change in Operating Income = $13,656 / $6,523 - 1 = 109%

  4. % change in Net Income = $12,587 / $5,644-1 = 123%

Tesla has been able to keep their cost of ingredients (or gross margins) roughly in line with their growth in sales from 2021 to 2022. Even more impressive, Tesla has gained significant operating leverage by keeping their operating costs in check (despite their growth in sales) as shown by their 109% and 123% growth rates in operating income and net income from 2021 to 2022.

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