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

13 Pages Posted: 2 Mar 2021

See all articles by Haitham Nobanee

Haitham Nobanee

University of Oxford; Abu Dhabi University; University of Liverpool

Hamdan Alzaabi

Abu Dhabi University

Ateeq Alremeithi

Abu Dhabi University - College of Business Administration

Mohamed Abdulla

Abu Dhabi University - College of Business Administration

Dunia Azim

Abu Dhabi University - College of Business Administration

Nada Ismaili

Abu Dhabi University - College of Business Administration

Date Written: January 10, 2021

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.

Suggested Citation

Nobanee, Haitham and Nobanee, Haitham and Alzaabi, Hamdan and Alremeithi, Ateeq and Abdulla, Mohamed and Azim, Dunia and Ismaili, Nada, Working Capital Management Ratios: A Comparative Study between Tesla and NIO (January 10, 2021). Available at SSRN: https://ssrn.com/abstract=3763482 or http://dx.doi.org/10.2139/ssrn.3763482

Haitham Nobanee (Contact Author)

University of Oxford ( email )

Mansfield Road
Oxford, Oxfordshire OX1 4AU
United Kingdom

Abu Dhabi University ( email )

Abu Dhabi
United Arab Emirates

University of Liverpool ( email )

Chatham Street
Brownlow Hill
Liverpool, L69 7ZA
United Kingdom

Hamdan Alzaabi

Abu Dhabi University ( email )

Abu Dhabi University
AlAin Campus
AlAin, 1970
United Arab Emirates

Ateeq Alremeithi

Abu Dhabi University - College of Business Administration ( email )

PO Box 59911
Abu Dhabi, Abu Dhabi 59911
United Arab Emirates

Mohamed Abdulla

Abu Dhabi University - College of Business Administration ( email )

PO Box 59911
Abu Dhabi, Abu Dhabi 59911
United Arab Emirates

Dunia Azim

Abu Dhabi University - College of Business Administration ( email )

PO Box 59911
Abu Dhabi, Abu Dhabi 59911
United Arab Emirates

Nada Ismaili

Abu Dhabi University - College of Business Administration ( email )

PO Box 59911
Abu Dhabi, Abu Dhabi 59911
United Arab Emirates

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