Stock Analysis on Net

Tesla Inc. (NASDAQ:TSLA)

Return on Capital (ROC)

Microsoft Excel

Return on capital (ROC) is after tax rate of return on net business assets. ROIC is unaffected by changes in interest rates or company debt and equity structure. It measures business productivity performance.


Return on Invested Capital (ROIC)

Tesla Inc., ROIC calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1 11,309 14,874 7,214 2,291 901
Invested capital2 65,244 49,621 40,247 39,217 25,479
Performance Ratio
ROIC3 17.33% 29.98% 17.93% 5.84% 3.54%
Benchmarks
ROIC, Competitors4
Ford Motor Co. 1.73% 1.70% 7.11% -0.25% -0.61%
General Motors Co. 6.32% 5.94% 8.31% 5.15% 4.29%

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).

1 NOPAT. See details »

2 Invested capital. See details »

3 2023 Calculation
ROIC = 100 × NOPAT ÷ Invested capital
= 100 × 11,309 ÷ 65,244 = 17.33%

4 Click competitor name to see calculations.

Performance ratio Description The company
ROIC A measure of the periodic, after tax, cash-on-cash yield earned in the business. Tesla Inc. ROIC improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Decomposition of ROIC

Tesla Inc., decomposition of ROIC

Microsoft Excel
ROIC = OPM1 × TO2 × 1 – CTR3
Dec 31, 2023 17.33% = 12.73% × 1.51 × 90.35%
Dec 31, 2022 29.98% = 19.64% × 1.66 × 91.76%
Dec 31, 2021 17.93% = 14.93% × 1.36 × 88.52%
Dec 31, 2020 5.84% = 8.50% × 0.81 × 84.46%
Dec 31, 2019 3.54% = 4.51% × 0.99 × 78.85%

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).

1 Operating profit margin (OPM). See calculations »

2 Turnover of capital (TO). See calculations »

3 Effective cash tax rate (CTR). See calculations »

The primary reason for the decrease in return on invested capital (ROIC) over 2023 year is the decrease in profitability measured by operating profit margin (OPM) ratio.


Operating Profit Margin (OPM)

Tesla Inc., OPM calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1 11,309 14,874 7,214 2,291 901
Add: Cash operating taxes2 1,208 1,335 936 422 242
Net operating profit before taxes (NOPBT) 12,517 16,209 8,150 2,712 1,143
 
Revenues 96,773 81,462 53,823 31,536 24,578
Add: Increase (decrease) in deferred revenue 1,564 1,052 757 372 749
Adjusted revenues 98,337 82,514 54,580 31,908 25,327
Profitability Ratio
OPM3 12.73% 19.64% 14.93% 8.50% 4.51%
Benchmarks
OPM, Competitors4
Ford Motor Co. 2.56% 3.67% 8.31% 0.22% -0.26%
General Motors Co. 8.21% 8.16% 12.91% 8.22% 5.89%

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).

1 NOPAT. See details »

2 Cash operating taxes. See details »

3 2023 Calculation
OPM = 100 × NOPBT ÷ Adjusted revenues
= 100 × 12,517 ÷ 98,337 = 12.73%

4 Click competitor name to see calculations.

Profitability ratio Description The company
OPM The operating profit margin (OPM) is the ratio of pretax economic earnings, or NOPBT, to sales. Tesla Inc. OPM improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Turnover of Capital (TO)

Tesla Inc., TO calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Revenues 96,773 81,462 53,823 31,536 24,578
Add: Increase (decrease) in deferred revenue 1,564 1,052 757 372 749
Adjusted revenues 98,337 82,514 54,580 31,908 25,327
 
Invested capital1 65,244 49,621 40,247 39,217 25,479
Efficiency Ratio
TO2 1.51 1.66 1.36 0.81 0.99
Benchmarks
TO, Competitors3
Ford Motor Co. 0.96 0.91 0.79 0.68 0.83
General Motors Co. 0.87 0.84 0.68 0.71 0.84

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).

1 Invested capital. See details »

2 2023 Calculation
TO = Adjusted revenues ÷ Invested capital
= 98,337 ÷ 65,244 = 1.51

3 Click competitor name to see calculations.

Efficiency ratio Description The company
TO The turnover of capital (TO) is the ratio of sales to invested capital. Capital turnover is a function of the efficiency of working capital management and of net fixed assets. Tesla Inc. TO improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

Effective Cash Tax Rate (CTR)

Tesla Inc., CTR calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1 11,309 14,874 7,214 2,291 901
Add: Cash operating taxes2 1,208 1,335 936 422 242
Net operating profit before taxes (NOPBT) 12,517 16,209 8,150 2,712 1,143
Tax Rate
CTR3 9.65% 8.24% 11.48% 15.54% 21.15%
Benchmarks
CTR, Competitors4
Ford Motor Co. 29.29% 49.15% -8.20% 269.76%
General Motors Co. 12.01% 13.43% 5.03% 11.67% 13.68%

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).

1 NOPAT. See details »

2 Cash operating taxes. See details »

3 2023 Calculation
CTR = 100 × Cash operating taxes ÷ NOPBT
= 100 × 1,208 ÷ 12,517 = 9.65%

4 Click competitor name to see calculations.

Tax rate Description The company
CTR Effective cash tax rate on operating income. Tesla Inc. CTR decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.