Stock Analysis on Net
Stock Analysis on Net

Tesla Inc. (NASDAQ:TSLA)

Analysis of Goodwill and Intangible Assets

Microsoft Excel

Goodwill and Intangible Asset Disclosure

Tesla Inc., balance sheet: goodwill and intangible assets

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Goodwill 253 194 200 207 198
Intangible assets 178 215 257 313 339
Goodwill and intangible assets 431 409 457 520 537

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Item Description The company
Goodwill Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. Tesla Inc. goodwill decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.
Intangible assets Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges. Tesla Inc. intangible assets decreased from 2021 to 2022 and from 2022 to 2023.
Goodwill and intangible assets Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges. Tesla Inc. goodwill and intangible assets decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.

Adjustments to Financial Statements: Removal of Goodwill

Tesla Inc., adjustments to financial statements

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Adjustment to Total Assets
Total assets (as reported) 106,618 82,338 62,131 52,148 34,309
Less: Goodwill 253 194 200 207 198
Total assets (adjusted) 106,365 82,144 61,931 51,941 34,111
Adjustment to Stockholders’ Equity
Stockholders’ equity (as reported) 62,634 44,704 30,189 22,225 6,618
Less: Goodwill 253 194 200 207 198
Stockholders’ equity (adjusted) 62,381 44,510 29,989 22,018 6,420

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Tesla Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

Tesla Inc., adjusted financial ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Total Asset Turnover
Reported total asset turnover 0.91 0.99 0.87 0.60 0.72
Adjusted total asset turnover 0.91 0.99 0.87 0.61 0.72
Financial Leverage
Reported financial leverage 1.70 1.84 2.06 2.35 5.18
Adjusted financial leverage 1.71 1.85 2.07 2.36 5.31
Return on Equity (ROE)
Reported ROE 23.94% 28.09% 18.28% 3.24% -13.03%
Adjusted ROE 24.04% 28.21% 18.40% 3.27% -13.43%
Return on Assets (ROA)
Reported ROA 14.07% 15.25% 8.88% 1.38% -2.51%
Adjusted ROA 14.10% 15.29% 8.91% 1.39% -2.53%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Tesla Inc. adjusted total asset turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Tesla Inc. adjusted financial leverage ratio decreased from 2021 to 2022 and from 2022 to 2023.
Adjusted ROE A profitability ratio calculated as net income divided by adjusted shareholders’ equity. Tesla Inc. adjusted ROE improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Tesla Inc. adjusted ROA improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.

Tesla Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Revenues 96,773 81,462 53,823 31,536 24,578
Total assets 106,618 82,338 62,131 52,148 34,309
Activity Ratio
Total asset turnover1 0.91 0.99 0.87 0.60 0.72
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Revenues 96,773 81,462 53,823 31,536 24,578
Adjusted total assets 106,365 82,144 61,931 51,941 34,111
Activity Ratio
Adjusted total asset turnover2 0.91 0.99 0.87 0.61 0.72

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 Total asset turnover = Revenues ÷ Total assets
= 96,773 ÷ 106,618 = 0.91

2 Adjusted total asset turnover = Revenues ÷ Adjusted total assets
= 96,773 ÷ 106,365 = 0.91

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Tesla Inc. adjusted total asset turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Total assets 106,618 82,338 62,131 52,148 34,309
Stockholders’ equity 62,634 44,704 30,189 22,225 6,618
Solvency Ratio
Financial leverage1 1.70 1.84 2.06 2.35 5.18
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets 106,365 82,144 61,931 51,941 34,111
Adjusted stockholders’ equity 62,381 44,510 29,989 22,018 6,420
Solvency Ratio
Adjusted financial leverage2 1.71 1.85 2.07 2.36 5.31

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 Financial leverage = Total assets ÷ Stockholders’ equity
= 106,618 ÷ 62,634 = 1.70

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 106,365 ÷ 62,381 = 1.71

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Tesla Inc. adjusted financial leverage ratio decreased from 2021 to 2022 and from 2022 to 2023.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to common stockholders 14,997 12,556 5,519 721 (862)
Stockholders’ equity 62,634 44,704 30,189 22,225 6,618
Profitability Ratio
ROE1 23.94% 28.09% 18.28% 3.24% -13.03%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net income (loss) attributable to common stockholders 14,997 12,556 5,519 721 (862)
Adjusted stockholders’ equity 62,381 44,510 29,989 22,018 6,420
Profitability Ratio
Adjusted ROE2 24.04% 28.21% 18.40% 3.27% -13.43%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 ROE = 100 × Net income (loss) attributable to common stockholders ÷ Stockholders’ equity
= 100 × 14,997 ÷ 62,634 = 23.94%

2 Adjusted ROE = 100 × Net income (loss) attributable to common stockholders ÷ Adjusted stockholders’ equity
= 100 × 14,997 ÷ 62,381 = 24.04%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as net income divided by adjusted shareholders’ equity. Tesla Inc. adjusted ROE improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to common stockholders 14,997 12,556 5,519 721 (862)
Total assets 106,618 82,338 62,131 52,148 34,309
Profitability Ratio
ROA1 14.07% 15.25% 8.88% 1.38% -2.51%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net income (loss) attributable to common stockholders 14,997 12,556 5,519 721 (862)
Adjusted total assets 106,365 82,144 61,931 51,941 34,111
Profitability Ratio
Adjusted ROA2 14.10% 15.29% 8.91% 1.39% -2.53%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 ROA = 100 × Net income (loss) attributable to common stockholders ÷ Total assets
= 100 × 14,997 ÷ 106,618 = 14.07%

2 Adjusted ROA = 100 × Net income (loss) attributable to common stockholders ÷ Adjusted total assets
= 100 × 14,997 ÷ 106,365 = 14.10%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Tesla Inc. adjusted ROA improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.