Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Tesla Inc. (NASDAQ:TSLA)

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
Quarterly Data

Beginner level

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Tesla Inc., decomposition of ROE (quarterly data)

Microsoft Excel LibreOffice Calc
ROE = ROA × Financial Leverage
Sep 30, 2020 3.47% = 1.22% × 2.85
Jun 30, 2020 3.74% = 0.97% × 3.87
Mar 31, 2020 -1.57% = -0.39% × 4.06
Dec 31, 2019 -13.03% = -2.51% × 5.18
Sep 30, 2019 -13.71% = -2.52% × 5.43
Jun 30, 2019 -11.54% = -2.07% × 5.58
Mar 31, 2019 -21.03% = -3.35% × 6.28
Dec 31, 2018 -19.83% = -3.28% × 6.04
Sep 30, 2018 -39.72% = -6.12% × 6.49
Jun 30, 2018 -69.68% = -9.75% × 7.14
Mar 31, 2018 -52.59% = -8.58% × 6.13
Dec 31, 2017 -46.29% = -6.84% × 6.76
Sep 30, 2017 -29.87% = -5.01% × 5.97
Jun 30, 2017 -15.01% = -2.94% × 5.10
Mar 31, 2017 -14.49% = -2.89% × 5.02
Dec 31, 2016 -14.20% = -2.98% × 4.77
Sep 30, 2016 -32.61% = -6.94% × 4.70
Jun 30, 2016 -44.67% = -9.48% × 4.71
Mar 31, 2016 -104.78% = -11.06% × 9.47
Dec 31, 2015 -81.61% = -10.98% × 7.43
Sep 30, 2015 — = — × 5.74
Jun 30, 2015 — = — × 9.03
Mar 31, 2015 — = — × 7.41

Based on: 10-Q (filing date: 2020-10-26), 10-Q (filing date: 2020-07-28), 10-Q (filing date: 2020-04-30), 10-K (filing date: 2020-02-13), 10-Q (filing date: 2019-10-29), 10-Q (filing date: 2019-07-29), 10-Q (filing date: 2019-04-29), 10-K (filing date: 2019-02-19), 10-Q (filing date: 2018-11-02), 10-Q (filing date: 2018-08-06), 10-Q (filing date: 2018-05-07), 10-K (filing date: 2018-02-23), 10-Q (filing date: 2017-11-03), 10-Q (filing date: 2017-08-04), 10-Q (filing date: 2017-05-10), 10-K (filing date: 2017-03-01), 10-Q (filing date: 2016-11-02), 10-Q (filing date: 2016-08-05), 10-Q (filing date: 2016-05-10), 10-K (filing date: 2016-02-24), 10-Q (filing date: 2015-11-05), 10-Q (filing date: 2015-08-07), 10-Q (filing date: 2015-05-11).

The primary reason for the decrease in return on equity ratio (ROE) over Q3 2020 is the decrease in financial leverage ratio.

Three-Component Disaggregation of ROE

Tesla Inc., decomposition of ROE (quarterly data)

Microsoft Excel LibreOffice Calc
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Sep 30, 2020 3.47% = 1.97% × 0.62 × 2.85
Jun 30, 2020 3.74% = 1.43% × 0.67 × 3.87
Mar 31, 2020 -1.57% = -0.55% × 0.70 × 4.06
Dec 31, 2019 -13.03% = -3.51% × 0.72 × 5.18
Sep 30, 2019 -13.71% = -3.39% × 0.74 × 5.43
Jun 30, 2019 -11.54% = -2.64% × 0.78 × 5.58
Mar 31, 2019 -21.03% = -4.29% × 0.78 × 6.28
Dec 31, 2018 -19.83% = -4.55% × 0.72 × 6.04
Sep 30, 2018 -39.72% = -10.22% × 0.60 × 6.49
Jun 30, 2018 -69.68% = -19.89% × 0.49 × 7.14
Mar 31, 2018 -52.59% = -18.77% × 0.46 × 6.13
Dec 31, 2017 -46.29% = -16.68% × 0.41 × 6.76
Sep 30, 2017 -29.87% = -13.09% × 0.38 × 5.97
Jun 30, 2017 -15.01% = -7.61% × 0.39 × 5.10
Mar 31, 2017 -14.49% = -8.46% × 0.34 × 5.02
Dec 31, 2016 -14.20% = -9.64% × 0.31 × 4.77
Sep 30, 2016 -32.61% = -14.74% × 0.47 × 4.70
Jun 30, 2016 -44.67% = -24.64% × 0.38 × 4.71
Mar 31, 2016 -104.78% = -23.91% × 0.46 × 9.47
Dec 31, 2015 -81.61% = -21.96% × 0.50 × 7.43
Sep 30, 2015 — = — × — × 5.74
Jun 30, 2015 — = — × — × 9.03
Mar 31, 2015 — = — × — × 7.41

Based on: 10-Q (filing date: 2020-10-26), 10-Q (filing date: 2020-07-28), 10-Q (filing date: 2020-04-30), 10-K (filing date: 2020-02-13), 10-Q (filing date: 2019-10-29), 10-Q (filing date: 2019-07-29), 10-Q (filing date: 2019-04-29), 10-K (filing date: 2019-02-19), 10-Q (filing date: 2018-11-02), 10-Q (filing date: 2018-08-06), 10-Q (filing date: 2018-05-07), 10-K (filing date: 2018-02-23), 10-Q (filing date: 2017-11-03), 10-Q (filing date: 2017-08-04), 10-Q (filing date: 2017-05-10), 10-K (filing date: 2017-03-01), 10-Q (filing date: 2016-11-02), 10-Q (filing date: 2016-08-05), 10-Q (filing date: 2016-05-10), 10-K (filing date: 2016-02-24), 10-Q (filing date: 2015-11-05), 10-Q (filing date: 2015-08-07), 10-Q (filing date: 2015-05-11).

The primary reason for the decrease in return on equity ratio (ROE) over Q3 2020 is the decrease in financial leverage ratio.

Five-Component Disaggregation of ROE

Tesla Inc., decomposition of ROE (quarterly data)

Microsoft Excel LibreOffice Calc
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Sep 30, 2020 3.47% = 0.69 × 0.55 × 5.25% × 0.62 × 2.85
Jun 30, 2020 3.74% = 0.80 × 0.40 × 4.49% × 0.67 × 3.87
Mar 31, 2020 -1.57% = — × -0.09 × 2.47% × 0.70 × 4.06
Dec 31, 2019 -13.03% = — × — × -0.27% × 0.72 × 5.18
Sep 30, 2019 -13.71% = — × — × -0.20% × 0.74 × 5.43
Jun 30, 2019 -11.54% = — × -5.74 × 0.40% × 0.78 × 5.58
Mar 31, 2019 -21.03% = — × — × -0.99% × 0.78 × 6.28
Dec 31, 2018 -19.83% = — × — × -1.19% × 0.72 × 6.04
Sep 30, 2018 -39.72% = — × — × -6.44% × 0.60 × 6.49
Jun 30, 2018 -69.68% = — × — × -15.60% × 0.49 × 7.14
Mar 31, 2018 -52.59% = — × — × -14.49% × 0.46 × 6.13
Dec 31, 2017 -46.29% = — × — × -12.40% × 0.41 × 6.76
Sep 30, 2017 -29.87% = — × — × -8.98% × 0.38 × 5.97
Jun 30, 2017 -15.01% = — × — × -3.84% × 0.39 × 5.10
Mar 31, 2017 -14.49% = — × — × -4.88% × 0.34 × 5.02
Dec 31, 2016 -14.20% = — × — × -6.42% × 0.31 × 4.77
Sep 30, 2016 -32.61% = — × — × -11.48% × 0.47 × 4.70
Jun 30, 2016 -44.67% = — × — × -20.94% × 0.38 × 4.71
Mar 31, 2016 -104.78% = — × — × -20.46% × 0.46 × 9.47
Dec 31, 2015 -81.61% = — × — × -18.70% × 0.50 × 7.43
Sep 30, 2015 — = — × — × — × — × 5.74
Jun 30, 2015 — = — × — × — × — × 9.03
Mar 31, 2015 — = — × — × — × — × 7.41

Based on: 10-Q (filing date: 2020-10-26), 10-Q (filing date: 2020-07-28), 10-Q (filing date: 2020-04-30), 10-K (filing date: 2020-02-13), 10-Q (filing date: 2019-10-29), 10-Q (filing date: 2019-07-29), 10-Q (filing date: 2019-04-29), 10-K (filing date: 2019-02-19), 10-Q (filing date: 2018-11-02), 10-Q (filing date: 2018-08-06), 10-Q (filing date: 2018-05-07), 10-K (filing date: 2018-02-23), 10-Q (filing date: 2017-11-03), 10-Q (filing date: 2017-08-04), 10-Q (filing date: 2017-05-10), 10-K (filing date: 2017-03-01), 10-Q (filing date: 2016-11-02), 10-Q (filing date: 2016-08-05), 10-Q (filing date: 2016-05-10), 10-K (filing date: 2016-02-24), 10-Q (filing date: 2015-11-05), 10-Q (filing date: 2015-08-07), 10-Q (filing date: 2015-05-11).

The primary reason for the decrease in return on equity ratio (ROE) over Q3 2020 is the decrease in financial leverage ratio.

Two-Component Disaggregation of ROA

Tesla Inc., decomposition of ROA (quarterly data)

Microsoft Excel LibreOffice Calc
ROA = Net Profit Margin × Asset Turnover
Sep 30, 2020 1.22% = 1.97% × 0.62
Jun 30, 2020 0.97% = 1.43% × 0.67
Mar 31, 2020 -0.39% = -0.55% × 0.70
Dec 31, 2019 -2.51% = -3.51% × 0.72
Sep 30, 2019 -2.52% = -3.39% × 0.74
Jun 30, 2019 -2.07% = -2.64% × 0.78
Mar 31, 2019 -3.35% = -4.29% × 0.78
Dec 31, 2018 -3.28% = -4.55% × 0.72
Sep 30, 2018 -6.12% = -10.22% × 0.60
Jun 30, 2018 -9.75% = -19.89% × 0.49
Mar 31, 2018 -8.58% = -18.77% × 0.46
Dec 31, 2017 -6.84% = -16.68% × 0.41
Sep 30, 2017 -5.01% = -13.09% × 0.38
Jun 30, 2017 -2.94% = -7.61% × 0.39
Mar 31, 2017 -2.89% = -8.46% × 0.34
Dec 31, 2016 -2.98% = -9.64% × 0.31
Sep 30, 2016 -6.94% = -14.74% × 0.47
Jun 30, 2016 -9.48% = -24.64% × 0.38
Mar 31, 2016 -11.06% = -23.91% × 0.46
Dec 31, 2015 -10.98% = -21.96% × 0.50
Sep 30, 2015 — = — × —
Jun 30, 2015 — = — × —
Mar 31, 2015 — = — × —

Based on: 10-Q (filing date: 2020-10-26), 10-Q (filing date: 2020-07-28), 10-Q (filing date: 2020-04-30), 10-K (filing date: 2020-02-13), 10-Q (filing date: 2019-10-29), 10-Q (filing date: 2019-07-29), 10-Q (filing date: 2019-04-29), 10-K (filing date: 2019-02-19), 10-Q (filing date: 2018-11-02), 10-Q (filing date: 2018-08-06), 10-Q (filing date: 2018-05-07), 10-K (filing date: 2018-02-23), 10-Q (filing date: 2017-11-03), 10-Q (filing date: 2017-08-04), 10-Q (filing date: 2017-05-10), 10-K (filing date: 2017-03-01), 10-Q (filing date: 2016-11-02), 10-Q (filing date: 2016-08-05), 10-Q (filing date: 2016-05-10), 10-K (filing date: 2016-02-24), 10-Q (filing date: 2015-11-05), 10-Q (filing date: 2015-08-07), 10-Q (filing date: 2015-05-11).

The primary reason for the increase in return on assets ratio (ROA) over Q3 2020 is the increase in profitability measured by net profit margin ratio.

Four-Component Disaggregation of ROA

Tesla Inc., decomposition of ROA (quarterly data)

Microsoft Excel LibreOffice Calc
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Sep 30, 2020 1.22% = 0.69 × 0.55 × 5.25% × 0.62
Jun 30, 2020 0.97% = 0.80 × 0.40 × 4.49% × 0.67
Mar 31, 2020 -0.39% = — × -0.09 × 2.47% × 0.70
Dec 31, 2019 -2.51% = — × — × -0.27% × 0.72
Sep 30, 2019 -2.52% = — × — × -0.20% × 0.74
Jun 30, 2019 -2.07% = — × -5.74 × 0.40% × 0.78
Mar 31, 2019 -3.35% = — × — × -0.99% × 0.78
Dec 31, 2018 -3.28% = — × — × -1.19% × 0.72
Sep 30, 2018 -6.12% = — × — × -6.44% × 0.60
Jun 30, 2018 -9.75% = — × — × -15.60% × 0.49
Mar 31, 2018 -8.58% = — × — × -14.49% × 0.46
Dec 31, 2017 -6.84% = — × — × -12.40% × 0.41
Sep 30, 2017 -5.01% = — × — × -8.98% × 0.38
Jun 30, 2017 -2.94% = — × — × -3.84% × 0.39
Mar 31, 2017 -2.89% = — × — × -4.88% × 0.34
Dec 31, 2016 -2.98% = — × — × -6.42% × 0.31
Sep 30, 2016 -6.94% = — × — × -11.48% × 0.47
Jun 30, 2016 -9.48% = — × — × -20.94% × 0.38
Mar 31, 2016 -11.06% = — × — × -20.46% × 0.46
Dec 31, 2015 -10.98% = — × — × -18.70% × 0.50
Sep 30, 2015 — = — × — × — × —
Jun 30, 2015 — = — × — × — × —
Mar 31, 2015 — = — × — × — × —

Based on: 10-Q (filing date: 2020-10-26), 10-Q (filing date: 2020-07-28), 10-Q (filing date: 2020-04-30), 10-K (filing date: 2020-02-13), 10-Q (filing date: 2019-10-29), 10-Q (filing date: 2019-07-29), 10-Q (filing date: 2019-04-29), 10-K (filing date: 2019-02-19), 10-Q (filing date: 2018-11-02), 10-Q (filing date: 2018-08-06), 10-Q (filing date: 2018-05-07), 10-K (filing date: 2018-02-23), 10-Q (filing date: 2017-11-03), 10-Q (filing date: 2017-08-04), 10-Q (filing date: 2017-05-10), 10-K (filing date: 2017-03-01), 10-Q (filing date: 2016-11-02), 10-Q (filing date: 2016-08-05), 10-Q (filing date: 2016-05-10), 10-K (filing date: 2016-02-24), 10-Q (filing date: 2015-11-05), 10-Q (filing date: 2015-08-07), 10-Q (filing date: 2015-05-11).

The primary reason for the increase in return on assets ratio (ROA) over Q3 2020 is the increase in effect of interest expense measured by interest burden ratio.

Disaggregation of Net Profit Margin

Tesla Inc., decomposition of net profit margin ratio (quarterly data)

Microsoft Excel LibreOffice Calc
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Sep 30, 2020 1.97% = 0.69 × 0.55 × 5.25%
Jun 30, 2020 1.43% = 0.80 × 0.40 × 4.49%
Mar 31, 2020 -0.55% = — × -0.09 × 2.47%
Dec 31, 2019 -3.51% = — × — × -0.27%
Sep 30, 2019 -3.39% = — × — × -0.20%
Jun 30, 2019 -2.64% = — × -5.74 × 0.40%
Mar 31, 2019 -4.29% = — × — × -0.99%
Dec 31, 2018 -4.55% = — × — × -1.19%
Sep 30, 2018 -10.22% = — × — × -6.44%
Jun 30, 2018 -19.89% = — × — × -15.60%
Mar 31, 2018 -18.77% = — × — × -14.49%
Dec 31, 2017 -16.68% = — × — × -12.40%
Sep 30, 2017 -13.09% = — × — × -8.98%
Jun 30, 2017 -7.61% = — × — × -3.84%
Mar 31, 2017 -8.46% = — × — × -4.88%
Dec 31, 2016 -9.64% = — × — × -6.42%
Sep 30, 2016 -14.74% = — × — × -11.48%
Jun 30, 2016 -24.64% = — × — × -20.94%
Mar 31, 2016 -23.91% = — × — × -20.46%
Dec 31, 2015 -21.96% = — × — × -18.70%
Sep 30, 2015 — = — × — × —
Jun 30, 2015 — = — × — × —
Mar 31, 2015 — = — × — × —

Based on: 10-Q (filing date: 2020-10-26), 10-Q (filing date: 2020-07-28), 10-Q (filing date: 2020-04-30), 10-K (filing date: 2020-02-13), 10-Q (filing date: 2019-10-29), 10-Q (filing date: 2019-07-29), 10-Q (filing date: 2019-04-29), 10-K (filing date: 2019-02-19), 10-Q (filing date: 2018-11-02), 10-Q (filing date: 2018-08-06), 10-Q (filing date: 2018-05-07), 10-K (filing date: 2018-02-23), 10-Q (filing date: 2017-11-03), 10-Q (filing date: 2017-08-04), 10-Q (filing date: 2017-05-10), 10-K (filing date: 2017-03-01), 10-Q (filing date: 2016-11-02), 10-Q (filing date: 2016-08-05), 10-Q (filing date: 2016-05-10), 10-K (filing date: 2016-02-24), 10-Q (filing date: 2015-11-05), 10-Q (filing date: 2015-08-07), 10-Q (filing date: 2015-05-11).

The primary reason for the increase in net profit margin ratio over Q3 2020 is the increase in effect of interest expense measured by interest burden ratio.