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Financial Statement Analysis Package (FSAP): Version 10.

0
Financial Reporting, Financial Statement Analysis, and Valuation: A Strategic Perspective, 10th Edition
By Jim Wahlen, Steve Baginski and Mark Bradshaw

The FSAP User Guides appear in column I to the right.

Analyst Name: enter analysts' names


Company Name: enter company name
Year (Most recent in far right column.) 2017 2018 2019 2020 2021 2022

BALANCE SHEET DATA 2017 2018 2019 2020 2021 2022


Assets:
Cash and cash equivalents 3,368 3,686 6,268 19,384 17,576 16,253
Short-term investments 0 0 0 0 131 5,932
Accounts and notes receivable - net 515 949 1,324 1,903 1,986 3,116
Inventories 2,264 3,113 3,552 4,101 5,757 12,839
Prepaid expenses and other current assets 268 366 713 1,091 1,305 2,483
Restricted Cash 155 193 246 238 345 294
Other current assets (2)
Other current assets (3)
Current Assets 6,571 8,307 12,103 26,717 27,100 40,917
Long-term investments 5.3 12.0 1.0 0.0 0.0 0.0
Accounts Receivable Long-Term 456.7 422.0 0.0 74.0 303.0 574.0
Property, plant, and equipment - at cost 23,169 23,344 25,062 29,893 39,867 48,134
<Accumulated depreciation> -2,677 -3,653 -4,863 -6,518 -8,691 -11,499
Operating lease right-of-use assets
Goodwill 60 68 198 207 200 194
Other Intangibles 362 282 339 313 257 215
Other Long-Term Assets 710 958 1,469 1,462 3,095 3,803
Total Assets 28,655 29,740 34,309 52,148 62,131 82,338

Liabilities and Equities:


Accounts payable 2,390 3,405 3,771 6,051 10,025 15,255
Accrued liabilities 1,207 921 1,190 1,632 2,951 3,773
Notes payable and short-term debt
Current maturities of long-term debt 964 2,284 1,399 1,758 1,088 1,016
Current operating lease liabilities 15 428 614 660 869 971
Income taxes payable 186 348 611 777 1,122 1,235
Unearned Revenue, Current 1,015 630 1,163 1,458 1,447 1,747
Other current liabilities (2) 1,897 1,977 1,919 1,912 2,203 2,712
Current Liabilities 7,675 9,993 10,667 14,248 19,705 26,709
Long-term debt 9,486 8,461 10,375 8,571 4,254 1,029
Long-term operating lease liabilities 1,666 2,655 2,188 2,348 2,662 2,732
Deferred tax liabilities - - 66 151 24 82
Unearned Revenue, Non-Current 1,178 991 1,207 1,284 2,052 2,804
Other noncurrent liabilities (2) 3,018 1,327 1,696 1,867 1,851 3,084
Total Liabilities 23,023 23,427 26,199 28,469 30,548 36,440

Preferred stock
Common stock + Additional paid in capital 9,178 10,249 12,737 27,261 29,806 32,180
Retained earnings <deficit> -4,974 -5,318 -6,083 -5,399 329 12,885
Comprehensive Inc. and Other 33 -8 -36 363 54 -361
<Treasury stock> and other equity adjustments
Total Common Shareholders' Equity 4,237 4,923 6,618 22,225 30,189 44,704
Noncontrolling interests 1,395 1,390 1,492 1,454 1,394 1,194
Total Equity 5,632 6,313 8,110 23,679 31,583 45,898
Total Liabilities and Equities 28,655 29,740 34,309 52,148 62,131 82,338
INCOME STATEMENT DATA 2017 2018 2019 2020 2021 2022
Revenues 11,759 21,461 24,578 31,536 53,823 81,462
<Cost of goods sold> -9,536 -17,419 -20,509 -24,906 -40,217 -60,609
Gross Profit 2,223 4,042 4,069 6,630 13,606 20,853
<Selling, general, and administrative expenses> -2,477 -2,835 -2,646 -3,188 -4,517 -3,946
<Advertising expenses>
<Research and development expenses> -1,378 -1,460 -1,343 -1,491 -2,593 -3,075
Add back: Imputed interest expense on operating
Other Operating Expense/(Income) 27 -140
<Other operating expenses (2)>
<Other operating expenses (3)>
<Non-recurring operating expenses>
Income <Loss> from equity affiliates
Non-recurring operating gains <losses>
Operating Income -1,632 -253 80 1,951 6,523 13,692
<Interest expense> -477 -653 -725 -748 -371 -191
Subtract: Imputed interest expense on operating lease
Other income <expense> -42 36 129 -92 191 254
Exchange Gains (Loss)
Other income or gains <Other expenses or losses> -58 -135 -149 43 0 -36
Income before Tax -2,209 -1,005 -665 1,154 6,343 13,719
<Income tax expense> -32 -58 -110 -292 -699 -1,132
Income <Loss> from discontinued operations
Extraordinary gains <losses>
Income <Loss> from changes in accounting principles
Net Income -2,241 -1,063 -775 862 5,644 12,587
Net income attributable to noncontrolling interests 279 87 -87 -141 -125 -31
Net Income attributable to common shareholders -1,962 -976 -862 721 5,519 12,556
Net Income (enter reported amount as a check) -1,962 -976 -862 721 5,519 12,556

Other comprehensive income items


Comprehensive Income -2,241 -1,063 -775 862 5,644 12,587

STATEMENT OF CASH FLOWS DATA 2017 2018 2019 2020 2021 2022
Net Income -2,241 -1,063 -775 862 5,644 12,587
Add back depreciation and amortization expenses 1,727 2,047 2,092 2,322 2,911 3,747
Add back stock-based compensation expense 467 749 898 1,734 2,121 1,560
Deferred income taxes
<Income from equity affiliates, net of dividends>
<Increase> Decrease in accounts receivable -25 -497 -367 -652 -130 -1,124
<Increase> Decrease in inventories -179 -1,023 -429 -422 -1,709 -6,465
<Increase> Decrease in prepaid expenses
<Increase> Decrease in other current assets
<Increase> Decrease in other noncurrent assets
Increase <Decrease> in accounts payable 388 1,797 646 2,102 4,578 6,029
Increase <Decrease> in income taxes payable
Increase <Decrease> in other current liabilities 469 406 801 321 793 1,131
Operating lease right-of-use assets and liabilities, net
Other addbacks to <subtractions from> net income 106 175 62 0 0 0
Other operating cash flows -1,052 -580 -436 -183 -2,586 -2,710
Net CF from Operating Activities -340 2,011 2,492 6,084 11,622 14,755
Proceeds from sales of property, plant, and equipment
<Property, plant, and equipment acquired> -4,081 -2,319 -1,432 -3,232 -6,514 -7,163
<Increase> Decrease in marketable securities 0 0 0 0 -132 -5,813
Investments sold
<Investments acquired> -115 -18 -45 -13 0 0
Payments for acquisitions of intangible assets 0 0 -5 -10 0 -9
Other investing transactions 0 0 46 123 -1,222 1,012
Net CF from Investing Activities -4,196 -2,337 -1,436 -3,132 -7,868 -11,973
Increase in short-term borrowing
<Decrease in short-term borrowing>
Increase in long-term borrowing 7,649 6,176 10,669 9,713 8,883 0
<Decrease in long-term borrowing> -4,264 -6,087 -9,871 -12,201 -14,615 -3,866
Issue of capital stock 659 296 1,111 12,686 707 541
Proceeds from stock option exercises
<Share repurchases>
<Dividend payments>
Other financing transactions (1) 371 189 -380 -225 -178 -202
Other financing transactions (2)
Net CF from Financing Activities 4,415 574 1,529 9,973 -5,203 -3,527
Effects of exchange rate changes on cash 40 -23 8 334 -183 -444
Changes in restricted cash 93 -11 -143 -176 -134
Net Change in Cash -81 318 2,582 13,116 -1,808 -1,323
Cash and cash equivalents, beginning of year 0 3,368 3,686 6,268 19,384 17,576
Cash and cash equivalents, end of year -81 3,686 6,268 19,384 17,576 16,253

SUPPLEMENTAL DATA 2017 2018 2019 2020 2021 2022


Statutory tax rate
Average tax rate implied from income statement data -1.4% -5.8% -16.5% 25.3% 11.0% 8.3%
After-tax effects of nonrecurring and unusual items on -58 -135 -149 43 0 -36
Depreciation expense
Preferred stock dividends (total, if any)
Common shares outstanding
Earnings per share (basic)
Common dividends per share #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Share price at fiscal year end

FINANCIAL DATA CHECKS


Assets - Liabilities - Equities 0 0 0 0 0 0
Net Income (computed) - Net Income (reported) 0 0 0 0 0 0
Cash Changes 0 0 0 0 0
Financial Statement Analysis Package (FSAP): Version 10.0
Financial Reporting, Financial Statement Analysis, and Valuation: A Strategic Perspective, 10th Edition
By James Wahlen, Steve Baginski and Mark Bradshaw

The FSAP User Guides appear in column J to the right.

Analyst Name: enter analysts' names


Company Name: enter company name

DATA CHECKS
Assets - Liabilities - Equities 0 0 0 0 0
Net Income (computed) - Net Income (reported) 0 0 0 0 0
Cash Changes 0 0 0 0
In the computations below, a #DIV/0! message indicates that a ratio denominator is zero.

PROFITABILITY FACTORS: 2018 2019 2020 2021 2022


RETURN ON ASSETS (based on reported amounts):
Profit Margin for ROA -1.7% 0.3% 4.5% 11.1% 15.7%
x Asset Turnover 0.7 0.8 0.7 0.9 1.1
= Return on Assets -1.3% 0.2% 3.3% 10.5% 17.7%

RETURN ON ASSETS (excluding the effects of nonrecurring items):


Profit Margin for ROA -1.1% 0.9% 4.4% 11.1% 15.7%
x Asset Turnover 0.7 0.8 0.7 0.9 1.1
= Return on Assets -0.8% 0.7% 3.2% 10.5% 17.7%

RETURN ON COMMON EQUITY (based on reported amounts):


Profit Margin for ROCE -4.5% -3.5% 2.3% 10.3% 15.4%
x Asset Turnover 0.7 0.8 0.7 0.9 1.1
x Capital Structure Leverage 6.4 5.5 3.0 2.2 1.9
= Return on Common Equity -21.3% -14.9% 5.0% 21.1% 33.5%

RETURN ON COMMON EQUITY (excluding the effects of nonrecurring items):


Profit Margin for ROCE -3.9% -2.9% 2.1% 10.3% 15.5%
x Asset Turnover 0.7 0.8 0.7 0.9 1.1
x Capital Structure Leverage 6.4 5.5 3.0 2.2 1.9
= Return on Common Equity -18.4% -12.4% 4.7% 21.1% 33.6%

OPERATING PERFORMANCE:
Gross Profit / Revenues 18.8% 16.6% 21.0% 25.3% 25.6%
Operating Profit / Revenues -1.2% 0.3% 6.2% 12.1% 16.8%
Net Income / Revenues -4.5% -3.5% 2.3% 10.3% 15.4%
Comprehensive Income / Revenues -5.0% -3.2% 2.7% 10.5% 15.5%

PERSISTENT OPERATING PERFORMANCE (excluding the effects of nonrecurring items):


Persistent Operating Profit / Revenues -1.2% 0.3% 6.2% 12.1% 16.8%
Persistent Net Income / Revenues -3.9% -2.9% 2.1% 10.3% 15.5%

GROWTH RATES:
Revenue Growth 82.5% 14.5% 28.3% 70.7% 51.4%
Net Income Growth -50.3% -11.7% -183.6% 665.5% 127.5%
Persistent Net Income Growth -55.8% -15.2% -195.1% 714.0% 128.2%

OPERATING CONTROL:
Gross Profit Control Index 99.6% 87.9% 127.0% 120.2% 101.3%
Operating Profit Contol Index 8.5% -27.6% 1900.7% 195.9% 138.7%
Net Profit Contol Index 26.0% 63.7% -86.7% 383.6% 147.3%

Profit Margin Decomposition:


Gross Profit Margin 18.8% 16.6% 21.0% 25.3% 25.6%
Operating Profit Index -6.3% 2.0% 29.4% 47.9% 65.7%
Leverage Index 397.2% -831.3% 59.1% 97.2% 100.2%
Tax Index 105.8% 116.5% 74.7% 89.0% 91.7%
Net Profit Margin -5.0% -3.2% 2.7% 10.5% 15.5%

Comprehensive Income Performance:


Comprehensive Income Index 100.0% 100.0% 100.0% 100.0% 100.0%
Comprehensive Income Margin -5.0% -3.2% 2.7% 10.5% 15.5%

RISK FACTORS: 2018 2019 2020 2021 2022


LIQUIDITY:
Current Ratio 0.83 1.13 1.88 1.38 1.53
Quick Ratio 0.46 0.71 1.49 1.00 0.95
Operating Cash Flow to Current Liabilities 22.8% 24.1% 48.8% 68.5% 63.6%

ASSET TURNOVER:
Cash Turnover 6.1 4.9 2.5 2.9 4.8
Days Sales Held in Cash 60.0 73.9 148.4 125.3 75.8
Accounts Receivable Turnover 29.3 21.6 19.5 27.7 31.9
Days Receivables Held 12 17 19 13 11
Inventory Turnover 6.5 6.2 6.5 8.2 6.5
Days Inventory Held 56 59 56 45 56
Accounts Payable Turnover 6.3 5.8 5.2 5.2 5.4
Days Payables Held 58 63 70 70 68
Net Working Capital Days 11 14 4 -12 -1
Revenues / Average Net Fixed Assets 1.1 1.2 1.4 2.0 2.4
CAPEX Index #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Expected Useful Life of PPE for Depreciation #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Expected Remaining Useful Life of PPE #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!

SOLVENCY:
Total Liabilities / Total Assets 78.8% 76.4% 54.6% 49.2% 44.3%
Total Liabilities / Total Equity 371.1% 323.0% 120.2% 96.7% 79.4%
LT Debt / LT Capital 57.3% 56.1% 26.6% 11.9% 2.2%
LT Debt / Total Equity 134.0% 127.9% 36.2% 13.5% 2.2%
Operating Cash Flow to Total Liabilities 8.7% 10.0% 22.3% 39.4% 44.1%
Interest Coverage Ratio (reported amounts) -0.5 0.1 2.5 18.1 72.8
Interest Coverage ratio (recurring amounts) -0.3 0.3 2.5 18.1 73.0

RISK FACTORS:
Bankruptcy Predictors:
Altman Z Score 0.29 0.44 0.83 1.34 1.96
Bankruptcy Probability 76.18% 71.16% 56.92% 36.57% 16.97%
Earnings Manipulation Predictors:
Beneish Earnings Manipulation Score -2.14 -2.35 -2.73 -2.47 -2.06
Earnings Manipulation Probability 1.62% 0.93% 0.32% 0.68% 1.99%

DIVIDEND and STOCK MARKET-BASED RATIOS:


Stock Returns
Price-Earnings Ratio (reported amounts)
Price-Earnings Ratio (recurring amounts)
Market Value to Book Value Ratio 0.0 0.0 0.0 0.0 0.0
Common Dividends per Share #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Common Dividend Payout (% of Net Income) 0.0% 0.0% 0.0% 0.0% 0.0%
Common Dividend Yield (% of Share Price) #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!

INCOME STATEMENT ITEMS AS A PERCENT OF REVENUES:


2018 2019 2020 2021 2022
Revenues 100.0% 100.0% 100.0% 100.0% 100.0%
<Cost of goods sold> -81.2% -83.4% -79.0% -74.7% -74.4%
Gross Profit 18.8% 16.6% 21.0% 25.3% 25.6%
<Selling, general, and administrative expenses> -13.2% -10.8% -10.1% -8.4% -4.8%
<Advertising expenses>
<Research and development expenses> -6.8% -5.5% -4.7% -4.8% -3.8%
Other Operating Expense/(Income) 0.1% -0.2%
<Other operating expenses (2)>
<Other operating expenses (3)>
<Non-recurring operating expenses>
Income <Loss> from equity affiliates
Non-recurring operating gains <losses>
Operating Income -1.2% 0.3% 6.2% 12.1% 16.8%
<Interest expense> -3.0% -2.9% -2.4% -0.7% -0.2%
Other income <expense> 0.2% 0.5% -0.3% 0.4% 0.3%
Exchange Gains (Loss)
Other income or gains <Other expenses or losses> -0.6% -0.6% 0.1% 0.0%
Income before Tax -4.7% -2.7% 3.7% 11.8% 16.8%
<Income tax expense> -0.3% -0.4% -0.9% -1.3% -1.4%
Income <Loss> from discontinued operations
Extraordinary gains <losses>
Income <Loss> from changes in accounting principles
Net Income -5.0% -3.2% 2.7% 10.5% 15.5%
Net income attributable to noncontrolling interests 0.4% -0.4% -0.4% -0.2% 0.0%
Net Income attributable to common shareholders -4.5% -3.5% 2.3% 10.3% 15.4%

Other comprehensive income items


Comprehensive Income -5.0% -3.2% 2.7% 10.5% 15.5%

INCOME STATEMENT ITEMS: GROWTH RATES


2018 2019 2020 2021 2022
YEAR TO YEAR GROWTH RATES: CAGR:
Revenues 82.5% 14.5% 28.3% 70.7% 51.4% 47.3%
<Cost of goods sold> 82.7% 17.7% 21.4% 61.5% 50.7% 44.8%
Gross Profit 81.8% 0.7% 62.9% 105.2% 53.3% 56.5%
<Selling, general, and administrative expenses> 14.5% -6.7% 20.5% 41.7% -12.6% 9.8%
<Advertising expenses>
<Research and development expenses> 6.0% -8.0% 11.0% 73.9% 18.6% 17.4%
Other Operating Expense/(Income) -618.5%
<Other operating expenses (2)>
<Other operating expenses (3)>
<Non-recurring operating expenses>
Income <Loss> from equity affiliates
Non-recurring operating gains <losses>
Operating Income -84.5% -131.6% 2338.8% 234.3% 109.9% -253.0%
<Interest expense> 36.9% 11.0% 3.2% -50.4% -48.5% -16.7%
Other income <expense> -185.7% 258.3% -171.3% -307.6% 33.0% -243.3%
Exchange Gains (Loss)
Other income or gains <Other expenses or losses> 132.8% 10.4% -128.9% -100.0% -9.1%
Income before Tax -54.5% -33.8% -273.5% 449.7% 116.3% -244.1%
<Income tax expense> 81.3% 89.7% 165.5% 139.4% 61.9% 104.1%
Income <Loss> from discontinued operations
Extraordinary gains <losses>
Income <Loss> from changes in accounting principles
Net Income -52.6% -27.1% -211.2% 554.8% 123.0% -241.2%
Net income attributable to noncontrolling interests -68.8% -200.0% 62.1% -11.3% -75.2% -164.4%
Net Income attributable to common shareholders -50.3% -11.7% -183.6% 665.5% 127.5% -245.0%

Other comprehensive income items


Comprehensive Income -52.6% -27.1% -211.2% 554.8% 123.0% -241.2%

COMMON SIZE BALANCE SHEET - AS A PERCENT OF TOTAL ASSETS


2018 2019 2020 2021 2022
Assets:
Cash and cash equivalents 12.4% 18.3% 37.2% 28.3% 19.7%
Short-term investments 0.2% 7.2%
Accounts and notes receivable - net 3.2% 3.9% 3.6% 3.2% 3.8%
Inventories 10.5% 10.4% 7.9% 9.3% 15.6%
Prepaid expenses and other current assets 1.2% 2.1% 2.1% 2.1% 3.0%
Restricted Cash 0.6% 0.7% 0.5% 0.6% 0.4%
Other current assets (2)
Other current assets (3)
Current Assets 27.9% 35.3% 51.2% 43.6% 49.7%
Long-term investments 0.0% 0.0%
Accounts Receivable Long-Term 1.4% 0.1% 0.5% 0.7%
Property, plant, and equipment - at cost 78.5% 73.0% 57.3% 64.2% 58.5%
<Accumulated depreciation> -12.3% -14.2% -12.5% -14.0% -14.0%
Operating lease right-of-use assets
Goodwill 0.2% 0.6% 0.4% 0.3% 0.2%
Other Intangibles 0.9% 1.0% 0.6% 0.4% 0.3%
Other Long-Term Assets 3.2% 4.3% 2.8% 5.0% 4.6%
Total Assets 100.0% 100.0% 100.0% 100.0% 100.0%

Liabilities and Equities:


Accounts payable 11.4% 11.0% 11.6% 16.1% 18.5%
Accrued liabilities 3.1% 3.5% 3.1% 4.7% 4.6%
Notes payable and short-term debt
Current maturities of long-term debt 7.7% 4.1% 3.4% 1.8% 1.2%
Current operating lease liabilities 1.4% 1.8% 1.3% 1.4% 1.2%
Income taxes payable 1.2% 1.8% 1.5% 1.8% 1.5%
Unearned Revenue, Current 2.1% 3.4% 2.8% 2.3% 2.1%
Other current liabilities (2) 6.6% 5.6% 3.7% 3.5% 3.3%
Current Liabilities 33.6% 31.1% 27.3% 31.7% 32.4%
Long-term debt 28.4% 30.2% 16.4% 6.8% 1.2%
Long-term operating lease liabilities 8.9% 6.4% 4.5% 4.3% 3.3%
Deferred tax liabilities #VALUE! 0.2% 0.3% 0.0% 0.1%
Unearned Revenue, Non-Current 3.3% 3.5% 2.5% 3.3% 3.4%
Other noncurrent liabilities (2) 4.5% 4.9% 3.6% 3.0% 3.7%
Total Liabilities 78.8% 76.4% 54.6% 49.2% 44.3%

Preferred stock
Common stock + Additional paid in capital 34.5% 37.1% 52.3% 48.0% 39.1%
Retained earnings <deficit> -17.9% -17.7% -10.4% 0.5% 15.6%
Comprehensive Inc. and Other 0.0% -0.1% 0.7% 0.1% -0.4%
<Treasury stock> and other equity adjustments
Total Common Shareholders' Equity 16.6% 19.3% 42.6% 48.6% 54.3%
Noncontrolling interests 4.7% 4.3% 2.8% 2.2% 1.5%
Total Equity 21.2% 23.6% 45.4% 50.8% 55.7%
Total Liabilities and Equities 100.0% 100.0% 100.0% 100.0% 100.0%

BALANCE SHEET ITEMS: GROWTH RATES


2018 2019 2020 2021 2022
Assets: YEAR TO YEAR GROWTH RATES: CAGR:
Cash and cash equivalents 9.4% 70.0% 209.3% -9.3% -7.5% 37.0%
Short-term investments 4428.2%
Accounts and notes receivable - net 84.1% 39.5% 43.7% 4.4% 56.9% 43.3%
Inventories 37.5% 14.1% 15.5% 40.4% 123.0% 41.5%
Prepaid expenses and other current assets 36.4% 94.8% 53.0% 19.6% 90.3% 56.0%
Restricted Cash 24.3% 27.5% -3.3% 45.0% -14.8% 13.6%
Other current assets (2)
Other current assets (3)
Current Assets 26.4% 45.7% 120.7% 1.4% 51.0% 44.2%
Long-term investments 126.2% -91.7% -100.0% -100.0%
Accounts Receivable Long-Term -7.6% -100.0% 309.5% 89.4% -52.3%
Property, plant, and equipment - at cost 0.8% 7.4% 19.3% 33.4% 20.7% -278.2%
<Accumulated depreciation> 36.4% 33.1% 34.0% 33.3% 32.3% #DIV/0!
Operating lease right-of-use assets
Goodwill 12.9% 191.2% 4.5% -3.4% -3.0% -11.7%
Other Intangibles -22.0% 20.2% -7.7% -17.9% -16.3% -21.2%
Other Long-Term Assets 35.0% 53.3% -0.5% 111.7% 22.9% -33.2%
Total Assets 3.8% 15.4% 52.0% 19.1% 32.5% 23.5%

Liabilities and Equities:


Accounts payable 42.5% 10.7% 60.5% 65.7% 52.2% 44.9%
Accrued liabilities -23.7% 29.2% 37.1% 80.8% 27.9% 25.6%
Notes payable and short-term debt
Current maturities of long-term debt 136.9% -38.7% 25.7% -38.1% -6.6% 1.1%
Current operating lease liabilities 2769.6% 43.5% 7.5% 31.7% 11.7% 130.5%
Income taxes payable 87.3% 75.6% 27.2% 44.4% 10.1% 46.1%
Unearned Revenue, Current -37.9% 84.6% 25.4% -0.8% 20.7% 11.5%
Other current liabilities (2) 4.2% -2.9% -0.4% 15.2% 23.1% 7.4%
Current Liabilities 30.2% 6.7% 33.6% 38.3% 35.5% 28.3%
Long-term debt -10.8% 22.6% -17.4% -50.4% -75.8% -35.9%
Long-term operating lease liabilities 59.4% -17.6% 7.3% 13.4% 2.6% 10.4%
Deferred tax liabilities 128.8% -84.1% 241.7%
Unearned Revenue, Non-Current -15.9% 21.8% 6.4% 59.8% 36.6% 18.9%
Other noncurrent liabilities (2) -56.0% 27.8% 10.1% -0.9% 66.6% 0.4%
Total Liabilities 1.8% 11.8% 8.7% 7.3% 19.3% 9.6%

Preferred stock
Common stock + Additional paid in capital 11.7% 24.3% 114.0% 9.3% 8.0% 28.5%
Retained earnings <deficit> 6.9% 14.4% -11.2% -106.1% 3816.4% -221.0%
Comprehensive Inc. and Other -124.0% 350.0% -1108.3% -85.1% -768.5% -261.0%
<Treasury stock> and other equity adjustments
Total Common Shareholders' Equity 16.2% 34.4% 235.8% 35.8% 48.1% 60.2%
Noncontrolling interests -0.4% 7.3% -2.5% -4.1% -14.3% -3.1%
Total Equity 12.1% 28.5% 192.0% 33.4% 45.3% 52.1%
Total Liabilities and Equities 3.8% 15.4% 52.0% 19.1% 32.5% 23.5%

RETURN ON ASSETS ANALYSIS (excluding the effects of non-recurring items)

Level 1 RETURN ON ASSETS


2020 2021 2022
3.2% 10.5% 17.7%

Level 2 PROFIT MARGIN FOR ROA ASSET TURNOVER


2020 2021 2022 2020 2021 2022
4.4% 11.1% 15.7% 0.7 0.9 1.1

Level 3 2020 2021 2022 2020 2021 2022 Turnovers:


Revenues 100.0% 100.0% 100.0% 19.5 27.7 31.9 Receivables
<Cost of goods sold> -79.0% -74.7% -74.4% 6.5 8.2 6.5 Inventory
Gross Profit 21.0% 25.3% 25.6% 1.4 2.0 2.4 Fixed Assets
<Selling, general, and administrative expenses> -10.1% -8.4% -4.8%
Operating Income 6.2% 12.1% 16.8%
Income before Tax 3.7% 11.8% 16.8%
<Income tax expense> -0.9% -1.3% -1.4%
Profit Margin for ROA* 4.4% 11.1% 15.7%
*Amounts do not sum.

RETURN ON COMMON SHAREHOLDERS' EQUITY ANALYSIS (excluding the effects of non-recurring items)

RETURN ON COMMON SHAREHOLDERS' EQUITY


2020 2021 2022
4.7% 21.1% 33.6%

2020 2021 2022


PROFIT MARGIN FOR ROCE 2.1% 10.3% 15.5%
ASSET TURNOVER 0.7 0.9 1.1
CAPITAL STRUCTURE LEVERAGE 3.0 2.2 1.9

RETURN ON COMMON SHAREHOLDERS' EQUITY ANALYSIS: Alternative Approach to Disaggregation

RETURN ON COMMON SHAREHOLDERS' EQUITY


2020 2021 2022
ROCE 4.7% 21.1% 33.6%
INPUT VARIABLES
Total Revenues 31,536 53,823 81,462
Net Operating Profit After Tax (NOPAT) 1,378 5,974 12,798
Net Financing Expense After Tax 700 455 206
Average Net Operating Assets 26,946 35,467 42,434
Average Financing Obligations 12,525 9,260 4,988
Average Common Equity 14,422 26,207 37,447

Profit margin for operating ROA 0.044 0.111 0.157


Net operating asset turnover 1.170 1.518 1.920
Operating ROA (NOPAT/Average NOA) 0.051 0.168 0.302

Net Borrowing Rate 0.056 0.049 0.041


Spread -0.005 0.119 0.260
Leverage 0.868 0.353 0.133
Leverage*Spread -0.004 0.042 0.035

ROCE = Operating ROA+Leverage*Spread 0.047 0.211 0.336

STATEMENT OF CASH FLOWS: SUMMARY


Year 2018 2019 2020 2021 2022
Operating Activities:
Net Income -1,063 -775 862 5,644 12,587
Add back depreciation and amortization expenses 2,047 2,092 2,322 2,911 3,747
Net cash flows for working capital 683 651 1,349 3,532 -429
Other net addbacks/subtractions 344 524 1,551 -465 -1,150
Net CF from Operating Activities 2,011 2,492 6,084 11,622 14,755

Investing Activities:
Capital expenditures (net) -2,319 -1,432 -3,232 -6,514 -7,163
Investments -18 -45 -13 -132 -5,813
Other investing transactions 0 41 113 -1,222 1,003
Net CF from Investing Activities -2,337 -1,436 -3,132 -7,868 -11,973

Financing Activities:
Net proceeds from short-term borrowing 0 0 0 0 0
Net proceeds from long-term borrowing 89 798 -2,488 -5,732 -3,866
Net proceeds from share issues and repurchases 296 1,111 12,686 707 541
Dividends 0 0 0 0 0
Other financing transactions 189 -380 -225 -178 -202
Net CF from Financing Activities 574 1,529 9,973 -5,203 -3,527

Effects of exchange rate changes on cash -23 8 334 -183 -444


Net Change in Cash 225 2,593 13,259 -1,632 -1,189
Financial Statement Analysis Package (FSAP): Version 10.0
Financial Reporting, Financial Statement Analysis, and Valuation: A Strategic Perspective, 10th Edition
By James Wahlen, Steve Baginski, and Mark Bradshaw

The FSAP User Guides appear in column L to the right.

FSAP OUTPUT: FINANCIAL STATEMENT FORECASTS


Analyst Name: enter analysts' names
Company Name: enter company name

Row Format: Row Format:


Actual Amounts Forecast Amounts Year +6 and beyond:
Common Size Percentage Forecast assumption Long-Run Growth Rate: 10.0%
Rate of Change Percentage Forecast assumption explanation Long-Run Growth Factor: 110.0%

Historical Figures: Forecasts:


Year 2020 2021 2022 Year +1 Year +2 Year +3 Year +4 Year +5 Year +6
INCOME STATEMENT
Revenues 31,536.0 53,823.0 81,462.0 128,356.3 159,656.2 197,561.4 245,597.4 294,829.1 324,312.1
common size 100.0% 100.0% 100.0% 57.6% 24.4% 23.7% 24.3% 20.0%
rate of change 70.7% 51.4% See Forecast Development worksheet for details of revenues forecasts.
<Cost of goods sold> -24,906.0 -40,217.0 -60,609.0 -97,550.8 -121,338.7 -148,171.0 -181,742.1 -218,173.6 -239,990.9
common size -79.0% -74.7% -74.4% -78.0% -76.0% -75.0% -74.0% -74.0%
rate of change 61.5% 50.7% Assume Tesla is able to increase profit margin over time
Gross Profit 6,630.0 13,606.0 20,853.0 30,805.5 38,317.5 49,390.3 63,855.3 76,655.6 84,321.1
common size 21.0% 25.3% 25.6% 24.0% 24.0% 25.0% 26.0% 26.0% 26.0%
rate of change 105.2% 53.3% 47.7% 24.4% 28.9% 29.3% 20.0%

<Selling, general, and administrative expenses> -3,188.0 -4,517.0 -3,946.0 -6,417.8 -7,982.8 -9,878.1 -11,051.9 -11,793.2 -12,972.5
common size -10.1% -8.4% -4.8% -5.0% -5.0% -5.0% -4.5% -4.0%
rate of change 41.7% -12.6% SG&A increase with revenue growth, expect to achieve economic scale after 5 years.
<Research and development expenses> -1,491.0 -2,593.0 -3,075.0 -5,776.0 -7,982.8 -9,878.1 -14,735.8 -17,689.7 -19,458.7
common size -4.7% -4.8% -3.8% -4.5% -5.0% -5.0% -6.0% -6.0%
R&D are critical to Tesla's long-term growth, placeholder for new technology research
rate of change 73.9% 18.6% and development
Other Operating Expense/(Income) 0.0 27.0 -140.0 0.0 0.0 0.0 0.0 0.0 0.0
common size 0.0% 0.1% -0.2% 0.0% 0.0% 0.0% 0.0% 0.0%
rate of change -618.5% Not material
Operating Income 1,951.0 6,523.0 13,692.0 18,611.7 22,351.9 29,634.2 38,067.6 47,172.7 51,889.9
common size 6.2% 12.1% 16.8% 14.5% 14.0% 15.0% 15.5% 16.0% 16.0%
rate of change 234.3% 109.9% 35.9% 20.1% 32.6% 28.5% 23.9%

<Interest expense> -748.0 -371.0 -191.0 -128.8 -148.5 -1,785.4 -213.1 -5,330.8 -5,863.9
common size -2.4% -0.7% -0.2% 6.0% 6.0% 40.0% 3.0% 50.0%
Assume Tesla is going to take on more debt for expansion in Year 3 and 5, interest
rate of change -50.4% -48.5% expense would increase
Subtract: Imputed interest expense on operating 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
common size 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
rate of change Explain assumptions.
Other income <expense> -92.0 191.0 254.0 0.0 0.0 0.0 0.0 0.0 0.0
common size -0.3% 0.4% 0.3% 0.0% 0.0% 0.0% 0.0% 0.0%
rate of change -307.6% 33.0% Explain assumptions.
Other income or gains <Other expenses or losses> 43.0 0.0 -36.0 0.0 0.0 0.0 0.0 0.0 0.0
common size 0.1% 0.0% 0.0% 0.0 0.0 0.0 0.0 0.0
rate of change -100.0% Explain assumptions
Income before Tax 1,154.0 6,343.0 13,719.0 18,482.8 22,203.4 27,848.8 37,854.5 41,841.9 46,026.0
common size 3.7% 11.8% 16.8% 14.4% 13.9% 14.1% 15.4% 14.2% 14.2%
rate of change 449.7% 116.3% 34.7% 20.1% 25.4% 35.9% 10.5%

<Income tax expense> -292.0 -699.0 -1,132.0 -4,620.7 -5,550.9 -6,962.2 -9,463.6 -10,460.5 -11,506.5
effective tax rates -25.3% -11.0% -8.3% -25.0% -25.0% -25.0% -25.0% -25.0%
rate of change 139.4% 61.9% Effective income tax rate assumptions.
Net Income 862.0 5,644.0 12,587.0 13,862.1 16,652.6 20,886.6 28,390.9 31,381.4 34,519.5
common size 2.7% 10.5% 15.5% 10.8% 10.4% 10.6% 11.6% 10.6% 10.6%
rate of change 554.8% 123.0% 10.1% 20.1% 25.4% 35.9% 10.5% 10.0%
Net income attributable to noncontrolling interests -141.0 -125.0 -31.0 0.0 0.0 0.0 0.0 0.0 0.0
common size -0.4% -0.2% 0.0%
rate of change -11.3% -75.2% Explain assumptions
Net Income attributable to common shareholders 721.0 5,519.0 12,556.0 13,862.1 16,652.6 20,886.6 28,390.9 31,381.4 34,519.5
common size 2.3% 10.3% 15.4% 10.8% 10.4% 10.6% 11.6% 10.6% 10.6%
rate of change 665.5% 127.5% 10.4% 20.1% 25.4% 35.9% 10.5% 10.0%
Comprehensive Income 862.0 5,644.0 12,587.0 13,862.1 16,652.6 20,886.6 28,390.9 31,381.4 34,519.5
common size 2.7% 10.5% 15.5% 10.8% 10.4% 10.6% 11.6% 10.6% 10.6%
rate of change 554.8% 123.0% 10.1% 20.1% 25.4% 35.9% 10.5% 10.0%

FSAP OUTPUT: FINANCIAL STATEMENT FORECASTS


Analyst Name: enter analysts' names
Company Name: enter company name

Row Format: Row Format:


Actual Amounts Forecast Amounts Year +6 and beyond:
Common Size Percent Forecast assumption Long-Run Growth Rate: 10.0%
Rate of Change Percent Forecast assumption explanation Long-Run Growth Factor: 110.0%

Historical Figures: Forecasts:


2020 2021 2022 Year +1 Year +2 Year +3 Year +4 Year +5 Year +6
BALANCE SHEET
ASSETS:
Cash and cash equivalents 19,384.0 17,576.0 16,253.0 22,754.2 29,580.5 36,975.6 53,614.6 77,741.1 85,515.3
common size 37.2% 28.3% 19.7% 40% 30% 25% 45% 45%
rate of change -9.3% -7.5% Assume in Year 3 and year 5, Tesla will increase capital expenditure
Short-term investments 0.0 131.0 5,932.0 6,821.8 7,504.0 8,254.4 9,905.3 11,391.0 12,530.1
common size 0.0% 0.2% 7.2% 15% 10% 10% 20% 15%
With more stable revenue and positive operating cash flow, Assume
rate of change 4428.2% Tesla will increase short-term investments over time
Accounts and notes receivable - net 1,903.0 1,986.0 3,116.0 3,739.2 4,487.0 5,160.1 6,450.1 7,417.6 8,159.4
common size 3.6% 3.2% 3.8% 20% 20% 15% 25% 15%
rate of change 4.4% 56.9% Accounts receivable doubled in 2022, indicating Tesla is having more credit sales
Inventories 4,101.0 5,757.0 12,839.0 14,122.9 15,535.2 17,088.7 18,797.6 20,677.3 22,745.1
common size 7.9% 9.3% 15.6% 10% 10% 10% 10% 10%
Finished goods includes vehicles in transit to fulfill customer orders, will increase
rate of change 40.4% 123.0% proportionately with revenue growth
Prepaid expenses and other current assets 1,091.0 1,305.0 2,483.0 2,607.2 2,737.5 2,874.4 3,018.1 3,169.0 3,485.9
common size 2.1% 2.1% 3.0% 5% 5% 5% 5% 5%
rate of change 19.6% 90.3% Assumes the same rate for prepay services based on company size
Restricted Cash 238.0 345.0 294.0 350.0 350.0 350.0 350.0 400.0 440.0
common size 0.5% 0.6% 0.4% 0% 0% 0% 0% 0%
rate of change 45.0% -14.8% Restricted cash is usually stable based on regulation
Current Assets 26,717.0 27,100.0 40,917.0 50,395.3 60,194.2 70,703.1 92,135.6 120,796.2 132,875.8
common size 51.2% 43.6% 49.7% 53.3% 56.1% 58.4% 62.9% 66.8% 66.8%
rate of change 1.4% 51.0% 23.2% 19.4% 17.5% 30.3% 31.1% 10.0%
Accounts Receivable Long-Term 74.0 303.0 574.0 688.8 757.7 871.3 958.5 1,054.3 1,159.7
common size 0.1% 0.5% 0.7% 20% 10% 15% 10% 10%
rate of change 309.5% 89.4% Long-term AR will also likely to increase due to increase revenue
Property, plant, and equipment - at cost 29,893.0 39,867.0 48,134.0 55,134.0 63,134.0 72,134.0 83,134.0 97,134.0 106,847.4
common size 57.3% 64.2% 58.5%
rate of change 33.4% 20.7% PP&E assumptions - see schedule in forecast development worksheet
<Accumulated depreciation> -6,518.0 -8,691.0 -11,499.0 -16,237.3 -21,775.6 -28,213.9 -35,752.2 -44,690.5 -49,159.6
common size -12.5% -14.0% -14.0%
rate of change 33.3% 32.3% See depreciation schedule in forecast development worksheet.
Operating lease right-of-use assets 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
common size 0.0% 0.0% 0.0% 0% 0% 0% 0% 0%
rate of change Explain assumptions
Goodwill 207.0 200.0 194.0 194.0 194.0 194.0 194.0 194.0 213.4
common size 0.4% 0.3% 0.2% 0.0% 0.0% 0.0% 0.0% 0.0%
rate of change -3.4% -3.0% Assume similar common size rate
Other Intangibles 313.0 257.0 215.0 236.5 260.2 286.2 314.8 346.3 380.9
common size 0.6% 0.4% 0.3% 10.0% 10.0% 10.0% 10.0% 10.0%
rate of change -17.9% -16.3% Explain assumptions
Other Long-Term Assets 1,462.0 3,095.0 3,803.0 4,183.3 4,601.6 5,061.8 5,568.0 6,124.8 6,737.2
common size 2.8% 5.0% 4.6% 10% 10% 10% 10% 10%
rate of change 111.7% 22.9% Other long-term assets is mainly lease receiable relating to sales type leases
Total Assets 52,148.0 62,131.0 82,338.0 94,594.6 107,366.0 121,036.5 146,552.7 180,959.0 199,054.9
common size 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
rate of change 19.1% 32.5% 14.9% 13.5% 12.7% 21.1% 23.5% 10.0%

LIABILITIES:
Accounts payable 6,051.0 10,025.0 15,255.0 24,553.1 30,540.4 37,293.9 45,743.6 54,913.3 60,404.6
common size 11.6% 16.1% 18.5% 61% 24% 22% 23% 20%
Assume increase the same speed as the increase of COGS. Once Tesla is more
rate of change 65.7% 52.2% mature, it may have more bargaining power over suppliers
Accrued liabilities 1,632.0 2,951.0 3,773.0 4,527.6 5,206.7 5,727.4 6,300.2 6,930.2 7,623.2
common size 3.1% 4.7% 4.6% 20.0% 15.0% 10.0% 10.0% 10.0%
rate of change 80.8% 27.9% Explain assumptions
Current maturities of long-term debt 1,758.0 1,088.0 1,016.0 1,117.6 1,341.1 1,609.3 2,896.8 3,186.5 3,505.2
common size 3.4% 1.8% 1.2% 10% 20% 20% 80% 10%
rate of change -38.1% -6.6% Same rate as long-term debt
Current operating lease liabilities 660.0 869.0 971.0 1,359.4 1,767.2 2,209.0 3,203.1 4,644.5 5,108.9
common size 1.3% 1.4% 1.2% 40% 30% 25% 45% 45%
rate of change 31.7% 11.7% Explain assumptions
Income taxes payable 777.0 1,122.0 1,235.0 1,987.7 2,472.5 3,019.2 3,703.3 4,445.6 4,890.2
common size 1.5% 1.8% 1.5% 61% 24% 22% 23% 20%
rate of change 44.4% 10.1% Income taxes payable increase the similar rate as revenue
Unearned Revenue, Current 1,458.0 1,447.0 1,747.0 2,445.8 3,179.5 3,974.4 5,762.9 8,356.2 9,191.9
common size 2.8% 2.3% 2.1% 40% 30% 25% 45% 45%
rate of change -0.8% 20.7% Increase with sales
Other current liabilities (2) 1,912.0 2,203.0 2,712.0 2,983.2 3,281.5 3,609.7 3,970.6 4,367.7 4,804.5
common size 3.7% 3.5% 3.3% 10% 10% 10% 10% 10%
rate of change 15.2% 23.1% Explain assumptions
Current Liabilities 14,248.0 19,705.0 26,709.0 38,974.4 47,789.0 57,443.0 71,580.5 86,844.0 95,528.4
common size 27.3% 31.7% 32.4% 41.2% 44.5% 47.5% 48.8% 48.0% 48.0%
rate of change 38.3% 35.5% 45.9% 22.6% 20.2% 24.6% 21.3%
Long-term debt 8,571.0 4,254.0 1,029.0 1,131.9 1,358.3 4,618.2 5,080.0 10,159.9 11,175.9
common size 16.4% 6.8% 1.2% 10% 20% 240% 10% 100%
Tesla paid off a large proportion of long-term debt in 2022, but they may acquire more
rate of change -50.4% -75.8% loans when interest rate goes down in the future
Long-term operating lease liabilities 2,348.0 2,662.0 2,732.0 3,824.8 4,972.2 6,215.3 9,012.2 13,067.7 14,374.4
common size 4.5% 4.3% 3.3% 40% 30% 25% 45% 45%
rate of change 13.4% 2.6% Assume same growth rate as revenue
Deferred tax liabilities 151.0 24.0 82.0 132.0 164.2 200.5 245.9 295.2 324.7
common size 0.3% 0.0% 0.1% 61% 24% 22% 23% 20%
rate of change -84.1% 241.7% Deferred tax from ECL and other reserves, increase the same rate as investments
Unearned Revenue, Non-Current 1,284.0 2,052.0 2,804.0 3,925.6 5,103.3 6,379.1 9,249.7 13,412.1 14,753.3
common size 2.5% 3.3% 3.4% 40% 30% 25% 45% 45%
rate of change 59.8% 36.6% Increase with sales
Other noncurrent liabilities (2) 1,867.0 1,851.0 3,084.0 3,392.4 3,731.6 4,104.8 4,515.3 5,192.6 5,711.8
common size 3.6% 3.0% 3.7% 10% 10% 10% 10% 15%
rate of change -0.9% 66.6% Assume flat rate
Total Liabilities 28,469.0 30,548.0 36,440.0 51,381.1 63,118.6 78,960.9 99,683.5 128,971.4 141,868.5
common size 54.6% 49.2% 44.3% 54.3% 58.8% 65.2% 68.0% 71.3% 71.3%
rate of change 7.3% 19.3% 41.0% 22.8% 25.1% 26.2% 29.4%

SHAREHOLDERS' EQUITY
Preferred stock 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
common size 0.0% 0.0% 0.0% 0% 0% 0% 0% 0%
rate of change Explain assumptions

Common stock + Additional paid in capital 27,261.0 29,806.0 32,180.0 35,398.0 38,937.8 42,831.6 47,114.7 51,826.2 57,008.8
common size 52.3% 48.0% 39.1% 10% 10% 10% 10% 10% 43.0%
rate of change 9.3% 8.0% Explain assumptions
Retained earnings <deficit> -5,399.0 329.0 12,885.0 26,747.1 43,399.7 64,286.3 92,677.2 124,058.6 136,464.5
common size -10.4% 0.5% 15.6% 28.3% 40.4% 53.1% 63.2% 68.6% 0%
rate of change -106.1% 3816.4% Add net income and subtract dividends; see forecast box below.
Comprehensive Inc. and Other 363.0 54.0 -361.0 -361.0 -361.0 -361.0 -361.0 -361.0 -397.1
common size 0.7% 0.1% -0.4% 0.0 0.0 0.0 0.0 0.0
rate of change -85.1% -768.5% Add accumulated other comprehensive income items from income statement
<Treasury stock> and other equity adjustments 0.0 0.0 0.0 -19,788.6 -38,971.3 -65,948.3 -93,854.2 -124,854.4 -137,339.9
common size 0.0% 0.0% 0.0% 0 0 0 0 0
rate of change Treasury stock repurchases, financial flexible amount determined below.
Total Common Shareholders' Equity 22,225.0 30,189.0 44,704.0 41,995.6 43,005.2 40,808.6 45,576.7 50,669.4 55,736.3
common size 42.6% 48.6% 54.3% 44.4% 40.1% 33.7% 31.1% 28.0%
rate of change 35.8% 48.1% -6.1% 2.4% -5.1% 11.7% 11.2% 10.0%
Noncontrolling interests 1,454.0 1,394.0 1,194.0 1,217.9 1,242.2 1,267.1 1,292.4 1,318.3 1,318.3
common size 2.8% 2.2% 1.5% 2% 2% 2% 2% 2%
rate of change -4.1% -14.3% Explain assumptions
Total Equity 23,679.0 31,583.0 45,898.0 43,213.4 44,247.4 42,075.7 46,869.1 51,987.6 57,054.6
common size 45.4% 50.8% 55.7% 45.7% 41.2% 34.8% 32.0% 28.7%
rate of change 33.4% 45.3% -5.8% 2.4% -4.9% 11.4% 10.9%
Total Liabilities and Equities 52,148.0 62,131.0 82,338.0 94,594.6 107,366.0 121,036.5 146,552.7 180,959.0 198,923.1
common size 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
rate of change 19.1% 32.5% 14.9% 13.5% 12.7% 21.1% 23.5% 9.9%
Check figures: Balance Sheet A=L+OE? 0.0 0.0 0 0 0 0 0 0 132
Initial adjustment needed to balance the balance sheet:
-19,788.6 -19,182.7 -26,977.0 -27,905.9 -31,000.2 -34,467.3

Dividends forecasts:
Common dividends: 0.0 0.0 0.0 0.0 0.0 0.0
0.0% 0.0% 0.0% 0.0% 0.0%
Assume dividend payout of net income, if any.
Preferred dividends: 0.0 0.0 0.0 0.0 0.0 0.0
0.0 0.0 0.0 0.0 0.0
Enter preferred stock dividend payment amounts, if any.
Total dividends: 0.0 0.0 0.0 0.0 0.0 0.0
Total dividend forecast amounts.

Flexible Financial Account: Treasury Stock Purchases:


Original Forecast Amounts:
Treasury Stock Purchases: 0.0 0.0 0.0 0.0 0.0
0.0 0.0 0.0 0.0 0.0
Enter treasury stock purchases, if any.
Implied adjustments: (19,788.6) (19,182.7) (26,977.0) (27,905.9) (31,000.2) (34,467.3)
Adjustment needed to balance the balance sheet, from above.
Total: (19,788.6) (19,182.7) (26,977.0) (27,905.9) (31,000.2) (34,467.3)
Total Treasury Stock Purchase Amounts

FSAP OUTPUT: FINANCIAL STATEMENT FORECASTS


Analyst Name: enter analysts' names
Company Name: enter company name

Historical Figures: Forecasts:


IMPLIED STATEMENT OF CASH FLOWS 2021 2022 Year +1 Year +2 Year +3 Year +4 Year +5 Year +6

Net Income 5,644.0 12,587.0 13,862.1 16,652.6 20,886.6 28,390.9 31,381.4 34,519.5 1
Add back depreciation expense (net) 2,173.0 2,808.0 4,738.3 5,538.3 6,438.3 7,538.3 8,938.3 4,469.1 2
Add back amortization expense (net) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 3
<Increase> Decrease in receivables - net -83.0 -1,130.0 -623.2 -747.8 -673.1 -1,290.0 -967.5 -741.8 4
<Increase> Decrease in inventories -1,656.0 -7,082.0 -1,283.9 -1,412.3 -1,553.5 -1,708.9 -1,879.8 -2,067.7 5
<Increase> Decrease in prepaid expenses -214.0 -1,178.0 -124.2 -130.4 -136.9 -143.7 -150.9 -316.9 6
<Increase> Decrease in other current assets (1) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 7
<Increase> Decrease in other current assets (2) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 8
Increase <Decrease> in accounts payable 3,974.0 5,230.0 9,298.1 5,987.3 6,753.6 8,449.7 9,169.6 5,491.3 9
Increase <Decrease> in accrued liabilities 1,319.0 822.0 754.6 679.1 520.7 572.7 630.0 693.0 10
Increase <Decrease> in income taxes payable 345.0 113.0 752.7 484.7 546.7 684.1 742.3 444.6 11
Increase <Decrease> in other current liabilities (1) -11.0 300.0 698.8 733.7 794.9 1,788.5 2,593.3 835.6 12
Increase <Decrease> in other current liabilities (2) 291.0 509.0 271.2 298.3 328.2 361.0 397.1 436.8 13
Net change in deferred tax liabilities -127.0 58.0 50.0 32.2 36.3 45.4 49.3 29.5 14
Increase <Decrease> in long-term other liabilities 768.0 752.0 1,121.6 1,177.7 1,275.8 2,870.6 4,162.4 1,341.2 15
Increase <Decrease> in other noncurrent liabilities (2) -16.0 1,233.0 308.4 339.2 373.2 410.5 677.3 519.3 16
Net Cash Flows from Operations 12,407.0 15,022.0 29,824.6 29,632.7 35,590.8 47,969.0 55,742.8 45,653.5 17
<Increase> Decrease in property, plant, & equip. at cost -9,974.0 -8,267.0 -7,000.0 -8,000.0 -9,000.0 -11,000.0 -14,000.0 -9,713.4 18
<Increase> Decrease in operating lease right-of-use assets 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 19
<Increase> Decrease in short-term investments -131.0 -5,801.0 -889.8 -682.2 -750.4 -1,650.9 -1,485.8 -1,139.1 20
<Increase> Decrease in long-term investments -229.0 -271.0 -114.8 -68.9 -113.7 -87.1 -95.8 -105.4 21
<Increase> Decrease in goodwill 7.0 6.0 0.0 0.0 0.0 0.0 0.0 -19.4 22
<Increase> Decrease in trademarks and other intangibles 56.0 42.0 -21.5 -23.7 -26.0 -28.6 -31.5 -34.6 23
<Increase> Decrease in other assets -1,633.0 -708.0 -380.3 -418.3 -460.2 -506.2 -556.8 -612.5 24
<Increase> Decrease in other noncurrent assets (2) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 25
Net Cash Flows from Investing Activities -11,904.0 -14,999.0 -8,406.4 -9,193.0 -10,350.2 -13,272.8 -16,169.9 -11,624.4 26
Increase <Decrease> in short-term debt 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 27
Increase <Decrease> in long-term debt -4,987.0 -3,297.0 204.5 449.9 3,528.1 1,749.3 5,369.6 1,334.6 28
Increase <Decrease> in operating lease obligations 523.0 172.0 1,481.2 1,555.3 1,684.9 3,790.9 5,496.9 1,771.2 29
Increase <Decrease> in preferred stock 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 30
Increase <Decrease> in common stock + paid in capital 2,545.0 2,374.0 3,218.0 3,539.8 3,893.8 4,283.2 4,711.5 5,182.6 31
Increase <Decrease> in accum. OCI -309.0 -415.0 0.0 0.0 0.0 0.0 0.0 -36.1 32
Increase <Decrease> in treasury stock and other equity adjs. 0.0 0.0 -19,788.6 -19,182.7 -26,977.0 -27,905.9 -31,000.2 -12,485.4 33
Dividends paid 209.0 0.0 0.0 0.0 0.0 0.0 0.0 -22,113.7 34
Increase <Decrease> in noncontrolling interests -185.0 -231.0 23.9 24.4 24.8 25.3 25.8 0.0 35
Net Cash Flows from Financing Activities -2,204.0 -1,397.0 -14,861.0 -13,613.4 -17,845.4 -18,057.2 -15,396.4 -26,346.7 36
Net Change in Cash -1,701.0 -1,374.0 6,557.2 6,826.3 7,395.1 16,639.0 24,176.6 7,682.3 37
Check Figure:
Net change in cash - Change in cash balance 107 -51 56 0 0 0 50 -92

FSAP OUTPUT: FINANCIAL STATEMENT FORECASTS


Analyst Name: enter analysts' names
Company Name: enter company name

Historical Figures: Forecasts:


2020 2021 2022 Year +1 Year +2 Year +3 Year +4 Year +5 Year +6
FORECAST VALIDITY CHECK DATA:
GROWTH
Revenue Growth Rates: 28.3% 70.7% 51.4% 57.6% 24.4% 23.7% 24.3% 20.0% 10.0%
Net Income Growth Rates: -211.2% 554.8% 123.0% 10.1% 20.1% 25.4% 35.9% 10.5% 10.0%
Total Asset Growth Rates 52.0% 19.1% 32.5% 14.9% 13.5% 12.7% 21.1% 23.5% 10.0%

RETURN ON ASSETS (based on reported amounts):


Profit Margin for ROA 4.5% 11.1% 15.7% 10.9% 10.5% 11.3% 11.6% 12.0% 12.0%
x Asset Turnover 0.7 0.9 1.1 1.5 1.6 1.7 1.8 1.8 1.7
= Return on Assets 3.3% 10.5% 17.7% 15.8% 16.6% 19.5% 21.3% 21.6% 20.5%

RETURN ON ASSETS (excluding the effects of nonrecurring items):


Profit Margin for ROA 4.4% 11.1% 15.7% 10.9% 10.5% 11.3% 11.6% 12.0% 12.0%
x Asset Turnover 0.7 0.9 1.1 1.5 1.6 1.7 1.8 1.8 1.7
= Return on Assets 3.2% 10.5% 17.7% 15.8% 16.6% 19.5% 21.3% 21.6% 20.5%

RETURN ON COMMON EQUITY (based on reported amounts):


Profit Margin for ROCE 2.3% 10.3% 15.4% 10.8% 10.4% 10.6% 11.6% 10.6% 10.6%
x Asset Turnover 0.7 0.9 1.1 1.5 1.6 1.7 1.8 1.8 1.7
x Capital Structure Leverage 3.0 2.2 1.9 2.0 2.4 2.7 3.1 3.4 3.6
= Return on Common Equity 5.0% 21.1% 33.5% 32.0% 39.2% 49.8% 65.7% 65.2% 64.9%

RETURN ON COMMON EQUITY (excluding the effects of nonrecurring items):


Profit Margin for ROCE 2.1% 10.3% 15.5% 10.8% 10.4% 10.6% 11.6% 10.6% 10.6%
x Asset Turnover 0.7 0.9 1.1 1.5 1.6 1.7 1.8 1.8 1.7
x Capital Structure Leverage 3.0 2.2 1.9 2.0 2.4 2.7 3.1 3.4 3.6
= Return on Common Equity 4.7% 21.1% 33.6% 32.0% 39.2% 49.8% 65.7% 65.2% 64.9%

OPERATING PERFORMANCE:
Gross Profit / Revenues 21.0% 25.3% 25.6% 24.0% 24.0% 25.0% 26.0% 26.0% 26.0%
Operating Profit Before Taxes / Revenues 6.2% 12.1% 16.8% 14.5% 14.0% 15.0% 15.5% 16.0% 16.0%

ASSET TURNOVER:
Revenues / Avg. Accounts Receivable 19.5 27.7 31.9 37.4 38.8 41.0 42.3 42.5 41.6
COGS / Average Inventory 6.5 8.2 6.5 7.2 8.2 9.1 10.1 11.1 11.1
Revenues / Average Fixed Assets 1.4 2.0 2.4 3.4 4.0 4.6 5.4 5.9 5.9

LIQUIDITY:
Current Ratio 1.9 1.4 1.5 1.3 1.3 1.2 1.3 1.4 1.4
Quick Ratio 1.5 1.0 0.9 0.9 0.9 0.9 1.0 1.1 1.1

SOLVENCY:
Total Liabilities / Total Assets 54.6% 49.2% 44.3% 54.3% 58.8% 65.2% 68.0% 71.3% 71.3%
Total Liabilities / Total Equity 120.2% 96.7% 79.4% 122.3% 146.8% 193.5% 218.7% 254.5% 254.5%
Interest Coverage Ratio 2.5 18.1 72.8 144.5 150.6 16.6 178.7 8.8 8.8
Financial Statement Analysis Package (FSAP): Version 10.0
Financial Reporting, Financial Statement Analysis, and Valuation: A Strategic Perspective, 10th Edition
By James Wahlen, Steve Baginski and Mark Bradshaw

The FSAP User Guides appear in column K to the right.

Analyst Name: enter analysts' names


Company Name: enter company name

Sales Forecast Development

Historical Figures: Sales Forecasts:


Year 2020 2021 2022 Year +1 Year +2 Year +3 Year +4 Year +5

Net Sales (in millions): $ 31,536.0 $ 53,823.0 $ 81,462.0 $ 128,356.3 $ 159,656.2 $ 197,561.4 $ 245,597.4 $ 294,829.1
rates of change 70.7% 51.4% 57.6% 24.4% 23.7% 24.3% 20.0%
Implied revenue growth rates.

Sales Forecasts by Segments (from projections below):


Automitive $ 29,542.0 $ 51,034.0 $ 77,553.0 $ 122,226.7 $ 152,258.3 $ 187,910.3 $ 233,177.4 $ 278,275.0
Energy generation and storage 1,994.0 2,789.0 3,909.0 6,129.6 7,397.9 9,651.1 12,420.0 16,554.1
0.0 0.0 0.0 - - - - -
0.0 0.0 0.0 - - - - -
Total Net Sales $ 31,536.0 $ 53,823.0 $ 81,462.0 $ 128,356.3 $ 159,656.2 $ 197,561.4 $ 245,597.4 $ 294,829.1
rates of change 70.7% 51.4% 57.6% 24.4% 23.7% 24.3% 20.0%
Implied revenue growth rates.

Sales by Segment: Sales Forecasts by Segment:


2020 2021 2022 Year +1 Year +2 Year +3 Year +4 Year +5

Automitive $ 29,542.0 $ 51,034.0 $ 77,553.0 $ 122,226.7 $ 152,258.3 $ 187,910.3 $ 233,177.4 $ 278,275.0


Sales growth rates: 72.8% 52.0% 57.6% 24.6% 23.4% 24.1% 19.3%
Volume growth: 87.4% 40.3% 40.8% 30.0% 24.1% 22.1% 20.0%
Price changes: -7.8% 8.3% 12.0% -4.2% -0.5% 1.6% -0.5%

Five-year growth rate history: 2016 2017 2018 2019 2020 CAGR
Sales growth rates: 87.0% 15.8% 28.2% 72.8% 52.0% 48.8%
Volume growth: 137.8% 49.9% 35.9% 87.4% 40.3% 66.4%
Price changes: -21.4% -22.8% -5.7% -7.8% 8.3% -10.6%

Energy generation and storage $ 1,994.0 $ 2,789.0 $ 3,909.0 $ 6,129.6 $ 7,397.9 $ 9,651.1 $ 12,420.0 $ 16,554.1
Sales growth rates: 39.9% 40.2% 56.8% 20.7% 30.5% 28.7% 33.3%
Volume growth: 32.1% 63.9% 30.0% 30.0% 30.0% 30.0% 30.0%
Price changes: 5.9% -14.5% 20.6% -7.2% 0.4% -1.0% 2.5%

Five-year growth rate history: 2016 2017 2018 2019 2020 CAGR
Sales growth rates: 0.0% -1.5% 30.2% 39.9% 40.2% 20.2%
Volume growth: 0.0% 58.6% 83.0% 32.1% 63.9% 44.4%
Price changes: 0.0% -37.9% -28.8% 5.9% -14.5% -16.7%

Total Sales $ 31,536.0 $ 53,823.0 $ 81,462.0 $ 128,356.3 $ 159,656.2 $ 197,561.4 $ 245,597.4 $ 294,829.1
70.7% 51.4% 57.6% 24.4% 23.7% 24.3% 20.0%

Forecast Development: Capital Expenditures, Property, Plant and Equipment, and Depreciation

Capital Expenditures: CAPEX Forecasts:


2020 2021 2022 Year +1 Year +2 Year +3 Year +4 Year +5
CAPEX:
PP&E Acquired $ 3,232.0 $ 6,514.0 $ 7,163.0 7,000 8,000 9,000 11,000 14,000
PP&E Sold 0 0 0
Net CAPEX $ 3,232.0 $ 6,514.0 $ 7,163.0 $ 7,000.0 $ 8,000.0 $ 9,000.0 $ 11,000.0 $ 14,000.0

Net CAPEX as a percent of:


Gross PP&E 12.9% 21.8% 18.0% 14.5% 14.5% 14.3% 15.2% 16.8%
Revenues 10.2% 12.1% 8.8% 5.5% 5.0% 4.6% 4.5% 4.7%

Property, Plant and Equipment and Depreciation Property, Plant and Equipment and Depreciation Forecasts:

PP&E at cost: 2020 2021 2022 Year +1 Year +2 Year +3 Year +4 Year +5
Beg. balance at cost: 25,062 29,893 39,867 $ 48,134.0 $ 55,134.0 $ 63,134.0 $ 72,134.0 $ 83,134.0
Add: CAPEX forecasts from above: 4,831 9,974 8,267 7,000.0 8,000.0 9,000.0 11,000.0 14,000.0
End balance at cost: $ 29,893.0 $ 39,867.0 $ 48,134.0 $ 55,134.0 $ 63,134.0 $ 72,134.0 $ 83,134.0 $ 97,134.0

Accumulated Depreciation:
Beg. Balance: $ (11,499.0) $ (16,237.3) $ (21,775.6) $ (28,213.9) $ (35,752.2)
Subtract: Depreciation expense forecasts from below: (4,738.3) (5,538.3) (6,438.3) (7,538.3) (8,938.3)
End Balance: $ (6,518.0) $ (8,691.0) $ (11,499.0) $ (16,237.3) $ (21,775.6) $ (28,213.9) $ (35,752.2) $ (44,690.5)

PP&E - net $ 23,375.0 $ 31,176.0 $ 36,635.0 $ 38,896.7 $ 41,358.4 $ 43,920.1 $ 47,381.8 $ 52,443.5

Depreciation Expense Forecast Development: Depreciation expense forecast on existing PP&E:


Existing PP&E at cost, less any non-depreciable PP&E (i.e., land): $ 40,383.0 $ 4,038.3 $ 4,038.3 $ 4,038.3 $ 4,038.3 $ 4,038.3
Remaining balance to be depreciated. $ 28,884.0 $ 32,596.7 $ 28,558.4 $ 24,520.1 $ 20,481.8 $ 16,443.5

New PP&E to be Depreciated: Depreciation expense forecasts on new PP&E:


Capex Year +1 $ 7,000.0 $ 700.0 $ 700.0 $ 700.0 $ 700.0 $ 700.0
Capex Year +2 $ 8,000.0 $ 800.0 $ 800.0 $ 800.0 $ 800.0
Capex Year +3 $ 9,000.0 $ 900.0 $ 900.0 $ 900.0
Capex Year +4 $ 11,000.0 $ 1,100.0 $ 1,100.0
Capex Year +5 $ 14,000.0 $ 1,400.0
Total Depreciation Expense $ 4,738.3 $ 5,538.3 $ 6,438.3 $ 7,538.3 $ 8,938.3

Depreciation methods: 2020 2021 2022

PP&E at Cost $ 29,893.0 $ 39,867.0 $ 48,134.0


Subtract any PP&E that is not Depreciable (3,662) (4,675) (7,751)
Depreciable PP&E $ 26,231.0 $ 35,192.0 $ 40,383.0
Avg Depreciable PP&E $ 30,711.5 $ 37,787.5
Depreciation Expense $ 2,332.0 $ 2,911.0 $ 3,747.0
Implied Average Useful Life in Years 10.6 10.1
Useful Life Forecast Assumption: (in years) 10.0
Tsla Revenue

Revenue Forecast

By geographic 2017 2018 2019 2020 2021 2022 2023F 2024F 2025F 2026F 2027F
United States 6221 14872 12653 15,207 23,973 40,553 54,774 71,040 92,093 118,643 146,348
% growth 139% -15% 20% 58% 69% 35% 30% 30% 29% 23%
China 2027 1757 2979 6,662 13,844 18,145 24,031 29,601 37,811 44,328 52,930
% growth -13% 70% 124% 108% 31% 32% 23% 28% 17% 19%
Other international 3511 4832 8946 9,667 16,006 22,764 28,173 36,625 43,950 55,113 66,136
38% 85% 8% 66% 42% 24% 30% 20% 25% 20%
Total Revenue 11,759 21,461 24,578 31,536 53,823 81,462 106,979 137,266 173,854 218,085 265,414
83% 15% 28% 71% 51% 31% 28% 27% 25% 22%
By segment
Automotive 10,643 19,906 23,047 29,542 51,034 77,553 122,227 152,258 187,910 233,177 278,275
% growth 87% 16% 28% 73% 52% 58% 25% 23% 24% 19%
Energy generation and storage 1,116 1,555 1,531 1,994 2,789 3,909 6,130 7,398 9,651 12,420 16,554
% growth 39% -2% 30% 40% 40% 57% 21% 30% 29% 33%
Total Revenue 11,759 21,461 24,578 31,536 53,823 81,462 128,356 159,656 197,561 245,597 294,829
% growth 83% 15% 28% 71% 51% 58% 24% 24% 24% 20%

Automotive
US
Number of vehicles delivered 50,067 197,517 195,125 292,902 301,998 536,069 750,497 975,646 1,268,339 1,585,424 1,902,509
% growth 295% -1% 50% 3% 78% 40% 30% 30% 25% 20%
Average revenue per vehicles 0.11 0.07 0.06 0.05 0.08 0.07 0.065 0.065 0.065 0.067 0.068
US Automotive Revenue 5,631 13,794 11,865 14,245 22,731 38,607 48,645 63,642 82,442 106,223 129,794
% growth 145% -14% 20% 60% 70% 26% 31% 30% 29% 22%

China
Number of vehicles delivered 42,715 147,997 471,462 439,770 659,655 857,552 1,029,062 1,234,874 1,481,849
% growth 246% 219% -7% 50% 30% 20% 20% 20%
Average revenue per vehicles 0.065 0.042 0.028 0.039 0.036 0.035 0.037 0.036 0.036
China Automotive Revenue - - 2,793 6,241 13,127 17,274 24,031 29,601 37,811 44,328 52,930
% growth 123% 110% 32% 39% 23% 28% 17% 19%

Other international
Number of vehicles delivered 58,651 162,712 338,012 439,416 571,240 685,488 822,586 987,103
% growth 177% 108% 30% 30% 20% 20% 20%
Average revenue per vehicles 0.154 0.093 0.064 0.064 0.064 0.064 0.067 0.067
Other Automotive Revenue - - - 9,056 15,177 21,672 28,173 36,625 43,950 55,113 66,136
% growth 68% 43% 30% 30% 20% 25% 20%

FSD subscription users Assume 20% of the Tesla owners in US would subscribe FSD 225,149 292,694 380,502 475,627 570,753
30% 30% 25% 20%
Average revenue 0.015 0.015 0.015 0.02 0.02
FDS Revenue 21,377 22,390 23,708 27,513 29,415
Total vehicles delivered 103,100 245,200 367,500 499,550 936,172 1,313,851 1,849,567 2,404,437 2,982,889 3,642,884 4,371,461
% growth 138% 50% 36% 87% 40% 41% 30% 24% 22% 20%
Average revenue per vehicles 0.103 0.081 0.063 0.059 0.055 0.059 0.066 0.063 0.063 0.064 0.064
% growth -21% -23% -6% -8% 8% 12% -4% -1% 2% -1%
FDS Revenue 21,377 22,390 23,708 27,513 29,415
Total Automotive Revenue 5,631 13,794 14,658 29,542 51,034 77,553 122,227 152,258 187,910 233,177 278,275
% growth 145% 6% 102% 73% 52% 58% 25% 23% 24% 19%

Energy generation and storage

Solar deployed (MW) 326 173 205 345 348


% growth -47% 18% 68% 1%
Storage deployed (MWh) 1041 1651 3,022 3,992 6,541 8,503 11,054 14,371 18,682 24,286
% growth 59% 83% 32% 64% 30% 30% 30% 30% 30%
Average revenue per MWh 1.49 0.93 0.66 0.70 0.60 0.72 0.67 0.67 0.66 0.68
% growth -38% -29% 6% -14% 21% -7% 0% -1% 3%
Energy generation and storage Revenue - 1,555 1,531 1,994 2,789 3,909 6,130 7,398 9,651 12,420 16,554
% growth -2% 30% 40% 40% 57% 21% 30% 29% 33%

Assumption
1. Energy generation and storage revenue only available in U.S.
2. Service revenue and FSD software fee are included in the automotive sales
Financial Statement Analysis Package (FSAP): Version 10.0
Financial Reporting, Financial Statement Analysis, and Valuation: A Strategic Perspective, 10th Edition
By James Wahlen, Steve Baginski and Mark Bradshaw

The FSAP User Guides appear in column J to the right.

DATA CHECKS - Estimated Value per Share


Dividend Based Valuation $ 119.85
Free Cash Flow Valuation $ 119.85
Residual Income Valuation $ 119.85
Residual Income Market-to-Book Valuation $ 119.85
Free Cash Flow for All Debt and Equity Valuation $ 121.58
Check: All Estimated Value per Share amounts should be the same, with the possible exception of the share value from the
Free Cash Flow for All Debt and Equity model. See additional comments in cell J266.

·
FSAP OUTPUT: VALUATION MODELS
Analyst Name: enter analysts' names
Company Name: enter company name

VALUATION PARAMETER ASSUMPTIONS

Current share price $ 189.10


Number of shares outstanding 3,164.0
Current market value $ 598,312

Long-run growth assumption used in forecasts 10.0%


Long-run growth assumption used in valuation. 10.0%
(Both long-run growth assumptions should be the same.)

COST OF EQUITY CAPITAL:


Equity risk factor (market beta) 1.94
Risk free rate 3.50%
Market risk premium 6.0%
Required rate of return on common equity: 15.12%

COST OF DEBT CAPITAL


Debt capital $ 2,045
Cost of debt capital, before tax 6.00%
Effective tax rate -25.0%
After-tax cost of debt capital 4.50%

COST OF LEASE OBLIGATIONS


Capitalized lease obligations $ 3,703
Implied interest rate on leases, before tax 4.00%
Effective tax rate -25.0%
After-tax cost of debt capital 3.00%

COST OF PREFERRED STOCK


Preferred stock capital $ -
Preferred dividends $ -
Implied yield 0.0%

COST OF NONCONTROLLING INTERESTS' CAPITAL


Noncontrolling interests capital $ 1,218
Earnings attributable to noncontrolling interests $ -
Implied yield 0.0%

WEIGHTED AVERAGE COST OF CAPITAL


Weight of equity in capital structure 0.9885
Weight of debt in capital structure 0.0034
Weight of lease obligations in capital structure 0.0061
Weight of preferred stock in capital structure 0.0000
Weight of noncontrolling interests in capital structure 0.0020
Weighted average cost of capital 14.98%

FSAP OUTPUT: VALUATION MODELS


Analyst Name: enter analysts' names
Company Name: enter company name
Continuing
1 2 3 4 5 Value
Dividends-Based Valuation Year +1 Year +2 Year +3 Year +4 Year +5 Year +6

Dividends Paid to Common Shareholders 0.0 0.0 0.0 0.0 0.0


Less: Common Stock Issues -3,218.0 -3,539.8 -3,893.8 -4,283.2 -4,711.5
Plus: Common Stock Repurchases 19,788.6 19,182.7 26,977.0 27,905.9 31,000.2
Dividends to Common Equity 16,570.6 15,642.9 23,083.2 23,622.8 26,288.7 29,452.6

Present Value Factors 0.869 0.755 0.656 0.569 0.495


Present Value Net Dividends 14,394.7 11,804.5 15,131.8 13,452.0 13,004.4
Sum of Present Value Net Dividends 67,787.4
Present Value of Continuing Value 284,783.3
Total 352,570.7
Adjust to midyear discounting 1.0756
Total Present Value Dividends 379,218.0
Shares Outstanding 3,164.0
Estimated Value per Share $ 119.85

Current share price $ 189.10


Percent difference -37%

FSAP OUTPUT: VALUATION MODELS


Analyst Name: enter analysts' names
Company Name: enter company name
Continuing
1 2 3 4 5 Value
Free Cash Flows for Common Equity Year +1 Year +2 Year +3 Year +4 Year +5 Year +6

Net Cash Flow from Operations 29,824.6 29,632.7 35,590.8 47,969.0 55,742.8 45,653.5
Decrease (Increase) in Cash Required for Operations -6,557.2 -6,826.3 -7,395.1 -16,639.0 -24,176.6 -7,682.3
Net Cash Flow from Investing -8,406.4 -9,193.0 -10,350.2 -13,272.8 -16,169.9 -11,624.4
Net CFs from Debt Financing 1,685.7 2,005.2 5,213.0 5,540.2 10,866.5 3,105.9
Net CFs into Financial Assets 0.0 0.0 0.0 0.0 0.0 0.0
Net CFs - Pref. Stock and Noncontrolling Interests 23.9 24.4 24.8 25.3 25.8 0.0
Free Cash Flow for Common Equity 16,570.6 15,642.9 23,083.2 23,622.8 26,288.7 29,452.6

Present Value Factors 0.869 0.755 0.656 0.569 0.495


Present Value Free Cash Flows 14,394.7 11,804.5 15,131.8 13,452.0 13,004.4
Sum of Present Value Free Cash Flows 67,787.4
Present Value of Continuing Value 284,783.3
Total 352,570.7
Adjust to midyear discounting 1.076
Total Present Value Free Cash Flows to Equity 379,218.0
Shares Outstanding 3,164.0
Estimated Value per Share $ 119.85

Current share price $ 189.10


Percent difference -37%

FSAP OUTPUT: VALUATION MODELS


Analyst Name: enter analysts' names
Company Name: enter company name

Dividends Valuation Sensitivity Analysis:

Vary Long-Run Growth Assumptions:


119.85 6.0% 7.0% 8.0% 9.0% 10.0% 11.0% 12.0% 13.0%
Vary 13.62% 92.76 103.18 117.31 137.57 169.03 224.55 348.78 876.34
Discount 13.87% 89.78 99.41 112.32 130.54 158.18 205.12 302.36 624.17
Rates: 14.12% 86.99 95.91 107.74 124.20 148.66 188.81 266.91 484.98
14.37% 84.37 92.65 103.52 118.45 140.22 174.92 238.95 396.73
14.62% 81.90 89.60 99.62 113.21 132.69 162.95 216.33 335.79
14.87% 79.57 86.75 96.01 108.42 125.94 152.53 197.67 291.18
15.12% 77.37 84.07 92.64 104.02 119.85 143.37 181.99 257.11
15.37% 75.29 81.55 89.51 99.97 114.33 135.27 168.65 230.24
15.62% 73.32 79.18 86.59 96.23 109.30 128.04 157.15 208.50
15.87% 71.45 76.95 83.85 92.76 104.70 121.56 147.13 190.56
16.12% 69.67 74.84 81.28 89.53 100.48 115.71 138.34 175.49
16.37% 67.98 72.84 78.86 86.52 96.58 110.40 130.55 162.66
16.62% 66.36 70.94 76.59 83.71 92.99 105.57 123.60 151.61
16.87% 64.83 69.15 74.44 81.08 89.65 101.15 117.37 141.98

FSAP OUTPUT: VALUATION MODELS


Analyst Name: enter analysts' names
Company Name: enter company name
Continuing
1 2 3 4 5 Value
RESIDUAL INCOME VALUATION Year +1 Year +2 Year +3 Year +4 Year +5 Year +6
Comprehensive Income Available
for Common Shareholders 13,862.1 16,652.6 20,886.6 28,390.9 31,381.4 34,519.5
Lagged Book Value of Common
Shareholders' Equity (at t-1) 44,704.0 41,995.6 43,005.2 40,808.6 45,576.7 50,669.4

Required Earnings 6,757.5 6,348.1 6,500.7 6,168.6 6,889.4 7,659.2


Residual Income 7,104.7 10,304.5 14,386.0 22,222.3 24,492.0 26,860.4

Present Value Factors 0.869 0.755 0.656 0.569 0.495


Present Value Residual Income 6,171.7 7,776.0 9,430.4 12,654.5 12,115.6
Sum of Present Value Residual Income 48,148.3
Present Value of Continuing Value 259,718.4
Total 307,866.7
Add: Beginning Book Value of Equity 44,704.0
Present Value of Equity 352,570.7
Adjust to midyear discounting 1.0756
Total Present Value of Equity 379,218.0
Shares Outstanding 3,164.0
Estimated Value per Share $ 119.85

Current share price $ 189.10


Percent difference -37%

FSAP OUTPUT: VALUATION MODELS


Analyst Name: enter analysts' names
Company Name: enter company name

Residual Income Valuation Sensitivity Analysis:

Long-Run Growth Assumptions


119.85 6.0% 7.0% 8.0% 9.0% 10.0% 11.0% 12.0% 13.0%
13.62% 97.50 107.27 120.53 139.53 169.03 221.10 337.60 832.34
Discount 13.87% 94.33 103.32 115.37 132.38 158.18 202.00 292.77 593.18
Rates: 14.12% 91.36 99.64 110.64 125.93 148.66 185.96 258.53 461.16
14.37% 88.57 96.22 106.28 120.09 140.22 172.31 231.53 377.47
14.62% 85.94 93.02 102.25 114.76 132.69 160.55 209.69 319.66
14.87% 83.46 90.03 98.51 109.89 125.94 150.30 191.66 277.35
15.12% 81.11 87.22 95.04 105.42 119.85 141.30 176.52 245.03
15.37% 78.90 84.58 91.80 101.30 114.33 133.34 163.63 219.54
15.62% 76.80 82.09 88.78 97.49 109.30 126.23 152.52 198.92
15.87% 74.80 79.75 85.95 93.96 104.70 119.86 142.85 181.89
16.12% 72.91 77.53 83.30 90.68 100.48 114.10 134.35 167.60
16.37% 71.11 75.44 80.80 87.62 96.58 108.89 126.83 155.43
16.62% 69.39 73.45 78.45 84.77 92.99 104.14 120.12 144.94
16.87% 67.76 71.57 76.24 82.09 89.65 99.79 114.10 135.80

FSAP OUTPUT: VALUATION MODELS


Analyst Name: enter analysts' names
Company Name: enter company name
Continuing
RESIDUAL INCOME VALUATION 1 2 3 4 5 Value
Market-to-Book Approach Year +1 Year +2 Year +3 Year +4 Year +5 Year +6
Comprehensive Income Available
for Common Shareholders 13,862.1 16,652.6 20,886.6 28,390.9 31,381.4 34,519.5
Book Value of Common
Shareholders' Equity (at t-1) 44,704.0 41,995.6 43,005.2 40,808.6 45,576.7 50,669.4

Implied ROCE 31.01% 39.65% 48.57% 69.57% 68.85% 68.13%


Residual ROCE 15.89% 24.54% 33.45% 54.45% 53.74% 53.01%
Cumulative growth factor in common equity as of t-1 100.00% 93.94% 96.20% 91.29% 101.95% 113.34%
Residual ROCE times cumulative growth 15.89% 23.05% 32.18% 49.71% 54.79% 60.08%

Present Value Factors 0.869 0.755 0.656 0.569 0.495


Present Value Residual ROCE times growth 0.138 0.174 0.211 0.283 0.271
Sum of Present Value Residual ROCE times growth 1.08
Present Value of Continuing Value 5.81
Total Present Value Residual ROCE 6.89
Add one for book value of equity at t-1 1.0
Sum 7.89
Adjust to mid-year discounting 1.07558
Implied Market-to-Book Ratio 8.483
Times Beginning Book Value of Equity 44,704.0
Total Present Value of Equity 379,218.0
Shares Outstanding 3,164.0
Estimated Value per Share $ 119.85

Current share price $ 189.10


Percent difference -37%

Sensitivity analysis for the market-to-book approach should be identical to that of the residual income approach.

FSAP OUTPUT: VALUATION MODELS


Analyst Name: enter analysts' names
Company Name: enter company name
Continuing
1 2 3 4 5 Value
Free Cash Flows for All Debt and Equity Year +1 Year +2 Year +3 Year +4 Year +5 Year +6

Net Cash Flow from Operations 29,824.6 29,632.7 35,590.8 47,969.0 55,742.8 45,653.5
Add back: Interest Expense after tax 96.6 111.4 1,339.0 159.8 3,998.1 4,397.9
Subtract: Interest Income after tax 0.0 0.0 0.0 0.0
Decrease (Increase) in Cash Required for Operations -6,557.2 -6,826.3 -7,395.1 -16,639.0 -24,176.6 -7,682.3
Free Cash Flow from Operations 23,364.0 22,917.8 29,534.7 31,489.8 35,564.4 42,369.1
Net Cash Flow from Investing -8,406.4 -9,193.0 -10,350.2 -13,272.8 -16,169.9 -11,624.4
Add back: Net CFs into Financial Assets 0.0 0.0 0.0 0.0 0.0 0.0
Free Cash Flows - All Debt and Equity 14,957.6 13,724.7 19,184.5 18,217.0 19,394.5 30,744.7

Present Value Factors 0.870 0.756 0.658 0.572 0.498


Present Value Free Cash Flows 13,009.4 10,382.3 12,622.1 10,424.5 9,652.7
Sum of Present Value Free Cash Flows 56,091.0
Present Value of Continuing Value 307,536.3
Total Present Value Free Cash Flows to Equity and Debt 363,627.3
Less: Value of Outstanding Debt -2,045.0
Less: Value of Lease Obligations -3,703.0
Less: Value of Preferred Stock 0.0
Plus: Value of Financial Assets 0.0
Present Value of Equity 357,879.3
Adjust to midyear discounting 1.0749
Total Present Value of Equity 384,676.5
Shares Outstanding 3,164.0
Estimated Value per Share $ 121.58
Current share price $ 189.10
Percent difference -36%

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