Financial Performance Analysis (Essay Sample)

Real-World Annual Discussion Prompt Student’s Name University Affiliation Course Instructor’s Name Date Real-World Annual Discussion Prompt Company selected The selected company is Tesla. Gross profit for each year reported. 2023: $3,696 billion 2024: $4,511 billion Gross profit percentage (gross profit ÷ sales) for each year reported. 2023: (3,696/13,897) = 0.3% 2024: (4,511/15,422) = 0.3% Operating income for each year reported. 2023: $1,171 billion 2024: $2,664 billion Percentage change in operating income for the most recent year. Old value: $1,171 billion New value: $2,664 billion Percentage change: (2,664 – 1,171) / 1,171 x 100 = 127.5% Net income for each year reported. 2023: 1,144 2024: 2,539 Based solely on your responses to item 1, has the company’s performance improved, remained constant, or deteriorated over the periods presented? The data shared shows that the performance of the company has improved in many areas but has remained constant in gross profit percentage. Briefly explain your answer. There is an increase in gross profit, which is proof that the performance of the company has improved (EDGAR, n.d.). There are two factors likely to be associated with the increased gross profit, better efficiency or higher sales margin. The two are important metrics when evaluating and assessing the performance of an organization. Even though the amount of gross profit has increased, the percentage has n...