Rivian | Strong balance sheet

Rivian Automotive Inc (NSDQ: RIVN) designs, develops, manufactures, and sells electric vehicles and accessories. The company offers pickup trucks and sports utility vehicles, as well as electric delivery vans in collaboration with Amazon. Rivian Automotive was founded in 2009 and is based in San Jose, California.


(Source: Rivian Automotive Inc)

Rivian went public at the end of last year and finished its first trading day at $130 a share. Since then, its steadily been declining going into 2022 and was as low as $20 during May. Although the company has since been steadily rebuilding its price, closing at $37.6 on 9 September, it still remains heavily below its prices from just nine months ago.

(Source: Google Finance)

Rivian posted its Q2 for the year on 11 August 2022. Revenue for the quarter was a new record with $364m. Despite this, net losses have remained significantly heavy for the company with ($1,712m), meaning a quarterly net margin loss of (470%). Although its net loss was significantly high, it was still an improvement from (4,557%) on its previous quarter three months ago, with the company having improved its net loss margin four quarters in a row.

(Property of EcoShares)

Since its losses have been so severe, its best to look at Rivian's current assets and current liabilities (to measure its ability to pay short-term debt or obligations due within one year). Despite its continued losses, the company increased its current assets to $15,732m, from just $3,859m the year before. It current liabilities climbed at a much lower rate, with $1,753m. Its short-term liquidity in Q2 was 11.1% (current liabilities/current assets) - which demonstrates strong financial control. This improved from 21.2% posted last year.

(Property of EcoShares)

Cash levels have also increased to $14,923m (up 308% in a year). Total assets were strong at $20,171m, with total liabilities at $3,303m. This represented a long-term liquidity of 16.4% and again strong control over its liabilities.

(Property of EcoShares)

Rivian Automotive releases its Q3 earnings on approximately 16 December 2022.