Question

I provided the EPS for the last 11 years. You only need to use the most recent 5 years. 2014-2018 to create the bar graph and table.

b. Earnings per Share (EPS or "bottom line") trend over five years i. Provide a table ii. Provide a bar graph (also, as above, there is extra credit for including the logarithmic growth trend line graph too**) iii. What does the trend suggest (as above)?

Answer 1

Part 1

Table for the past 5 years

EPS (Earnings per share)
Year	EPS (in $)
2014	-2.36
2015	-6.93
2016	-4.68
2017	-11.83
2018	-5.72

Part 2

Tesla's EPS (in $) Years 0 2014 2015 2016 2017 2018 -2 -2.36 -4,68 -5.72 -6.93 -10 -12 -11.83 -14 EPS (in $ Log. (EPS (in $)) (su) S

(To add logarithmic trend line, click on add element and format trend line in the Format chart area option. Click on 'Logarithmic' trendline in the trendline option, as highlighted in the screenshot below)

G н К М N о P Q R Format Trendline Trendline Options Trendline Options Exponential Tesla's EPS (in $) OLinear Years OLogarithmic Y 2015 2017 2014 2016 2018 Polynomial Order -236 4 Power -4.68 -6 -5.72 -8 Moving Average -6.93 Period 2 -10 Trendline Name -12 -11.83 O Automatic Log. (EPS (in $)) -14 O Custom EPS (in $ .Log. (EPS (in $)) Forecast periods Forward 0.0 Backward periods 0.0 Set Intercept 0.0 Display Equation on chart EPS (in $)

Part 3

Declining logarithmic trend line suggests that the EPS has been declining steadily over years. A logarithmic trend line levels out rapidly falling EPS and shows the best curved fit. Hence a falling trend line here suggests that the EPS is falling rapidly and predicts further decline as per the trend equation.