Tesla Inc. (NASDAQ:TSLA)

The values associated with goodwill and intangible assets demonstrate distinct trends over the five-year period. Goodwill exhibits a fluctuating pattern, while intangible assets consistently decrease. The combined value of these items also shows a general decline.

Goodwill

Goodwill began at 200 US$ million in 2021, decreased to 194 US$ million in 2022, and then increased to 253 US$ million in 2023. A slight decrease to 244 US$ million was observed in 2024, followed by a further increase to 257 US$ million in 2025. This suggests potential acquisitions or adjustments impacting goodwill during the period.

Intangible Assets

Intangible assets experienced a consistent decline throughout the period. Starting at 257 US$ million in 2021, they decreased to 215 US$ million in 2022, 178 US$ million in 2023, 150 US$ million in 2024, and finally to 124 US$ million in 2025. This continuous reduction may indicate amortization, impairment, or disposals of intangible assets.

Combined Goodwill and Intangible Assets

The aggregate value of goodwill and intangible assets decreased from 457 US$ million in 2021 to 409 US$ million in 2022. A modest increase to 431 US$ million occurred in 2023, but this was followed by declines to 394 US$ million in 2024 and 381 US$ million in 2025. The overall trend indicates a reduction in the total value of these assets.

The contrasting movements in goodwill and intangible assets suggest different underlying factors are influencing each category. While goodwill shows some volatility, the consistent decrease in intangible assets warrants further investigation into the reasons for their reduction.

The information presents a five-year trend of total assets and stockholders’ equity, both as reported and with an adjustment. The adjustment consistently reflects a reduction in both total assets and stockholders’ equity across the period examined.

Total Assets Trend

Reported total assets demonstrate a consistent upward trend, increasing from US$62,131 million in 2021 to US$137,806 million in 2025. The adjusted total assets follow a similar trajectory, albeit at slightly lower values, ranging from US$61,931 million in 2021 to US$137,549 million in 2025. The difference between reported and adjusted total assets remains relatively stable over the five years.

Stockholders’ Equity Trend

Reported stockholders’ equity also exhibits a steady increase, moving from US$30,189 million in 2021 to US$82,137 million in 2025. Adjusted stockholders’ equity mirrors this growth, starting at US$29,989 million in 2021 and reaching US$81,880 million in 2025. Similar to total assets, the disparity between reported and adjusted stockholders’ equity is consistent throughout the period.

Adjustment Impact

The adjustment consistently reduces both total assets and stockholders’ equity. The reduction amounts to US$199 million in 2021, US$194 million in 2022, US$253 million in 2023, US$244 million in 2025, and US$257 million in 2024. This suggests the adjustment relates to a specific item impacting both sides of the balance sheet with a relatively consistent magnitude. The nature of this adjustment is not apparent from the information presented, but the consistent reduction suggests it may be related to the removal of goodwill or other intangible assets.

Overall, the financial position, as indicated by total assets and stockholders’ equity, strengthens over the five-year period. The consistent adjustment suggests a systematic reduction related to a specific balance sheet item, warranting further investigation to understand its underlying cause and implications.

The financial performance, as indicated by several key ratios, exhibits generally consistent trends when goodwill and intangible assets are considered. The adjustments made for the removal of goodwill have a minimal impact on the reported values, suggesting that goodwill does not significantly distort the underlying financial picture. Overall, a pattern of declining profitability and efficiency is observed from 2023 through 2025.

Total Asset Turnover

Both the reported and adjusted total asset turnover ratios remain identical across all periods presented. The ratio initially increased from 0.87 in 2021 to 0.99 in 2022, then decreased steadily to 0.69 by 2025. This indicates a declining efficiency in utilizing assets to generate revenue over the observed timeframe.

Financial Leverage

Reported and adjusted financial leverage ratios are nearly indistinguishable throughout the period. A slight decrease in leverage is apparent, moving from 2.06 in 2021 to 1.68 in both 2024 and 2025. This suggests a reduction in the proportion of debt financing used by the entity.

Return on Equity (ROE)

The reported and adjusted ROE values are very close. A substantial increase in ROE occurred between 2021 and 2022, rising from 18.28% to 28.09%. However, ROE then experienced a significant decline, falling to 4.62% by 2025. This indicates a diminishing ability to generate profit from shareholder investments.

Return on Assets (ROA)

Similar to ROE, the reported and adjusted ROA values are almost identical. ROA increased from 8.88% in 2021 to 15.25% in 2022, followed by a consistent decrease to 2.75% in 2025. This mirrors the trend in ROE, suggesting a decreasing profitability relative to total assets.

The consistency between reported and adjusted ratios implies that goodwill and intangible assets do not materially affect the core financial metrics. However, the downward trend in asset turnover, ROE, and ROA from 2023 to 2025 warrants further investigation to understand the underlying causes of declining performance.

The reported and adjusted total asset turnover ratios exhibit a similar pattern over the five-year period. Initially, the ratios increase before declining. A consistent relationship between the reported and adjusted figures is also observed, indicating that adjustments to total assets do not materially impact the turnover calculation in this instance.

Total Asset Turnover Trend

The total asset turnover ratio increased from 0.87 in 2021 to 0.99 in 2022, suggesting improved efficiency in generating sales from its asset base. However, this positive trend reversed in subsequent years. The ratio decreased to 0.91 in 2023, then to 0.80 in 2024, and further declined to 0.69 in 2025. This downward trend indicates a decreasing ability to generate sales revenue for each dollar of assets employed.

Consistency of Reported and Adjusted Ratios

The reported and adjusted total asset turnover ratios are identical across all reported years. This suggests that the adjustments made to total assets do not significantly alter the overall assessment of asset utilization efficiency. The consistent values imply that the items adjusted for are not substantial drivers of the turnover ratio.

The declining trend in the total asset turnover ratio from 2022 through 2025 warrants further investigation. Potential contributing factors could include slower sales growth relative to the asset base, increased investment in less productive assets, or changes in accounting practices. The consistency between the reported and adjusted ratios suggests the issue is not related to the specific adjustments made to total assets.

The information presents a five-year trend of total assets, stockholders’ equity, and associated financial leverage ratios, both reported and adjusted. Both reported and adjusted total assets demonstrate consistent growth over the period, increasing from approximately US$62.1 billion in 2021 to US$137.8 billion in 2025. A similar upward trend is observed in both reported and adjusted stockholders’ equity, rising from US$30.2 billion to US$82.1 billion over the same timeframe.

Total Assets

Reported total assets increased steadily throughout the period, with the largest absolute increase occurring between 2022 and 2023 (US$24.0 billion). The rate of growth appears to moderate slightly in the later years, with a US$15.2 billion increase between 2024 and 2025. Adjusted total assets follow a similar pattern, remaining very close to the reported figures.

Stockholders’ Equity

Reported stockholders’ equity also exhibits consistent growth. The largest year-over-year increase is noted between 2021 and 2022 (US$14.5 billion). Similar to total assets, the growth rate appears to stabilize in the later years. Adjusted stockholders’ equity mirrors this trend, remaining consistently near the reported values.

Financial Leverage

Reported financial leverage shows a decreasing trend from 2.06 in 2021 to 1.68 in 2025. The decline is most pronounced between 2021 and 2022, slowing down in subsequent years. Adjusted financial leverage demonstrates an almost identical pattern, starting at 2.07 in 2021 and reaching 1.68 in 2025. The difference between reported and adjusted leverage is minimal throughout the period, suggesting that the adjustments made do not significantly alter the overall leverage profile.

The close alignment between reported and adjusted figures for both total assets, stockholders’ equity, and financial leverage indicates that the adjustments being made are not materially impacting the overall financial position or risk profile as measured by these metrics. The consistent growth in assets and equity, coupled with the declining leverage ratio, suggests improving financial health over the observed period.

Analysis reveals a consistent pattern between reported and adjusted return on equity (ROE) over the five-year period. Stockholders’ equity, both reported and adjusted, demonstrates a clear upward trajectory. However, the reported ROE exhibits a more volatile pattern than the adjusted ROE.

Stockholders’ Equity

Reported stockholders’ equity increased steadily from US$30,189 million in 2021 to US$82,137 million in 2025. Adjusted stockholders’ equity mirrors this growth, rising from US$29,989 million to US$81,880 million over the same period. The difference between reported and adjusted equity remains relatively small throughout the period, suggesting that adjustments are not materially impacting the overall equity position.

Reported ROE

Reported ROE peaked in 2022 at 28.09%, a substantial increase from 18.28% in 2021. A subsequent decline is observed, falling to 23.94% in 2023, then more dramatically to 9.73% in 2024, and finally to 4.62% in 2025. This represents a significant downward trend in reported profitability relative to equity.

Adjusted ROE

Adjusted ROE follows a similar pattern to reported ROE, beginning at 18.40% in 2021 and reaching a high of 28.21% in 2022. It then decreases to 24.04% in 2023, 9.76% in 2024, and 4.63% in 2025. The adjusted ROE demonstrates slightly more stability than the reported ROE, with the difference between the two metrics remaining consistently minimal across all years. The decline from 2022 to 2025 is substantial, mirroring the trend in reported ROE.

The consistent proximity of reported and adjusted ROE values suggests that the adjustments made to stockholders’ equity are not significantly altering the overall assessment of profitability. The pronounced decline in both reported and adjusted ROE from 2022 to 2025 warrants further investigation to determine the underlying drivers of this trend.

The analysis reveals trends in reported and adjusted return on assets over a five-year period. Total assets, both reported and adjusted, demonstrate consistent growth annually. However, the rate of growth in total assets appears to decelerate from 2023 to 2025.

Reported Return on Assets (ROA)

Reported ROA exhibits a significant increase from 8.88% in 2021 to a peak of 15.25% in 2022. Following this peak, a downward trend is observed, with ROA declining to 14.07% in 2023, 5.81% in 2024, and further to 2.75% in 2025. This represents a substantial decrease in profitability relative to asset base over the latter part of the period.

Adjusted Return on Assets (ROA)

The adjusted ROA mirrors the trend of the reported ROA. It increases from 8.91% in 2021 to 15.29% in 2022, then declines to 14.10% in 2023, 5.82% in 2024, and 2.76% in 2025. The adjusted ROA values are consistently slightly higher than the reported ROA values across all years, suggesting that the adjustments made have a marginally positive impact on the calculated return.

Asset Growth and ROA

While total assets increased throughout the period, the concurrent decline in ROA suggests that the increases in assets did not translate into proportional increases in profitability. The decreasing ROA, despite growing assets, indicates a potential issue with asset utilization or operational efficiency. The deceleration in asset growth from 2023-2025 may be a contributing factor to the continued decline in ROA during those years.

Difference between Reported and Adjusted ROA

The difference between reported and adjusted ROA remains consistently small throughout the period, fluctuating between approximately 0.01% and 0.03%. This indicates that the adjustments made to total assets have a limited, but consistently positive, effect on the calculated return on assets.

In summary, the period is characterized by initial strong growth in profitability relative to assets, followed by a marked decline. The continued growth in total assets, coupled with the decreasing ROA, warrants further investigation into the underlying drivers of profitability and asset efficiency.