Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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- Common-Size Balance Sheet: Assets
- Analysis of Short-term (Operating) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Price to FCFE (P/FCFE)
- Present Value of Free Cash Flow to Equity (FCFE)
- Operating Profit Margin since 2010
- Current Ratio since 2010
- Price to Earnings (P/E) since 2010
- Analysis of Revenues
- Aggregate Accruals
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Long-term Activity Ratios (Summary)
Tesla Inc., long-term (investment) activity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net fixed asset turnover | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset) | ||||||
| Total asset turnover | ||||||
| Equity turnover |
Based on: 10-K (reporting date: 2024-12-31), 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).
- Net Fixed Asset Turnover
- There was a noticeable increase in net fixed asset turnover from 2.47 in 2020 to a peak of 3.46 in 2022, indicating improved efficiency in utilizing fixed assets to generate sales during this period. However, this ratio experienced a decline in subsequent years, dropping to 3.26 in 2023 and further to 2.73 in 2024, suggesting a reduction in fixed asset utilization efficiency in the most recent periods.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
- This adjusted metric shows a similar trend, rising from 2.2 in 2020 to a high of 3.12 in 2022. Afterwards, it decreased to 2.85 in 2023 and 2.38 in 2024. The inclusion of operating leases and right-of-use assets moderates the turnover ratios slightly compared to the standard net fixed asset turnover, but the overall pattern of an increase followed by decline remains consistent.
- Total Asset Turnover
- Total asset turnover improved markedly from 0.6 in 2020 to 0.99 in 2022, indicating enhanced ability to generate revenues from total assets. Thereafter, the ratio declined steadily to 0.91 in 2023 and 0.8 in 2024, reflecting a diminished efficiency in overall asset usage to produce revenue.
- Equity Turnover
- Equity turnover exhibited growth from 1.42 in 2020 to 1.82 in 2022, suggesting increased sales generated per unit of shareholder equity during that timeframe. Post-2022, there was a decline to 1.55 in 2023 and further to 1.34 in 2024, which may imply reduced effectiveness in generating sales from equity capital in the recent years.
Net Fixed Asset Turnover
Tesla Inc., net fixed asset turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues | ||||||
| Property, plant and equipment, net | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Ford Motor Co. | ||||||
| General Motors Co. | ||||||
| Net Fixed Asset Turnover, Sector | ||||||
| Automobiles & Components | ||||||
| Net Fixed Asset Turnover, Industry | ||||||
| Consumer Discretionary | ||||||
Based on: 10-K (reporting date: 2024-12-31), 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).
1 2024 Calculation
Net fixed asset turnover = Revenues ÷ Property, plant and equipment, net
= ÷ =
2 Click competitor name to see calculations.
- Revenue Trends
- Revenues exhibited a consistent growth trajectory over the observed periods, increasing from US$31,536 million in 2020 to US$97,690 million in 2024. The most substantial year-over-year increases occurred between 2020 and 2022, indicating rapid expansion, while the growth rate stabilized in the later years, reflecting a maturation phase.
- Property, Plant and Equipment (PP&E)
- The net value of property, plant, and equipment showed a steady upward trend, growing from US$12,747 million in 2020 to US$35,836 million in 2024. This increase suggests sustained investments in fixed assets over the period, likely supporting capacity expansion and operational scale.
- Net Fixed Asset Turnover Ratio
- The net fixed asset turnover ratio, reflecting efficiency in generating revenues from fixed assets, increased from 2.47 in 2020 to a peak of 3.46 in 2022. Following this apex, the ratio declined to 2.73 by 2024. This pattern indicates an initial improvement in asset utilization efficiency, followed by a reduction, possibly due to accelerated asset base growth outpacing revenue increases in later years.
- Overall Interpretation
- The simultaneous increase in revenues and PP&E values underscores a growth strategy supported by capital investments. The fluctuation in the asset turnover ratio suggests varying efficiency levels in using fixed assets to generate sales. Early gains in operational efficiency gave way to a phase where asset accumulation potentially tempered turnover, highlighting the balance between expanding capacity and maintaining asset productivity.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Tesla Inc., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues | ||||||
| Property, plant and equipment, net | ||||||
| Operating lease right-of-use assets | ||||||
| Property, plant and equipment, net (including operating lease, right-of-use asset) | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Ford Motor Co. | ||||||
| General Motors Co. | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Automobiles & Components | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Consumer Discretionary | ||||||
Based on: 10-K (reporting date: 2024-12-31), 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).
1 2024 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Revenues ÷ Property, plant and equipment, net (including operating lease, right-of-use asset)
= ÷ =
2 Click competitor name to see calculations.
- Revenue Trends
- There is a consistent upward trajectory in revenues over the five-year period. Starting at $31,536 million in 2020, revenues increased substantially year over year, reaching $53,823 million in 2021 and continuing to $81,462 million in 2022. Growth moderated somewhat in 2023, with revenues rising to $96,773 million, and further to $97,690 million in 2024, indicating that growth is still positive but has slowed in the most recent years.
- Property, Plant, and Equipment (PPE) Trends
- The net value of property, plant, and equipment, inclusive of operating lease right-of-use assets, shows a steady increase throughout the period. The asset base expanded from $14,305 million in 2020 to $20,900 million in 2021, then to $26,111 million in 2022. This growth continued at a notable pace with $33,905 million reported in 2023 and $40,996 million in 2024. The data indicates significant ongoing capital investment and expansion of operational capacity.
- Net Fixed Asset Turnover Ratio
- The net fixed asset turnover ratio, which measures revenue generated per dollar of fixed assets, increased from 2.20 in 2020 to a peak of 3.12 in 2022. This suggests an improvement in asset utilization and operational efficiency up to that point. However, after 2022, the ratio declined to 2.85 in 2023 and further to 2.38 in 2024, implying that although fixed assets and revenues are both growing, asset growth outpaced revenue growth in the latter period, possibly reflecting a lag in efficiency or the integration phase of new assets.
- Overall Analysis
- The financial data depicts a period of robust revenue growth accompanied by significant capital expenditure resulting in a larger asset base. Efficiency in using these assets to generate revenue improved initially but tapered off in the last two years, indicating potential challenges in maximizing returns on the expanded fixed asset base. This pattern suggests a strategic focus on scaling operations, with attention needed to maintain or improve asset productivity going forward.
Total Asset Turnover
Tesla Inc., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues | ||||||
| Total assets | ||||||
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | ||||||
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Ford Motor Co. | ||||||
| General Motors Co. | ||||||
| Total Asset Turnover, Sector | ||||||
| Automobiles & Components | ||||||
| Total Asset Turnover, Industry | ||||||
| Consumer Discretionary | ||||||
Based on: 10-K (reporting date: 2024-12-31), 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).
1 2024 Calculation
Total asset turnover = Revenues ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
The financial data reveals several notable trends over the five-year period ending in 2024. Revenues have exhibited significant growth, rising from $31,536 million at the end of 2020 to $97,690 million by the end of 2024. This more than threefold increase suggests strong sales expansion and possibly enhanced market penetration or product offerings.
Total assets have also increased substantially, from $52,148 million in 2020 to $122,070 million in 2024. This expansion in asset base may indicate ongoing investments in infrastructure, capital equipment, or acquisitions aimed at supporting the growing scale of operations.
Despite the growth in both revenues and assets, the total asset turnover ratio demonstrates a distinct pattern. The ratio started relatively low at 0.6 in 2020, improved significantly to 0.99 by 2022, reflecting more efficient use of assets to generate revenue during that period. However, after 2022, the asset turnover decreased to 0.91 in 2023 and further to 0.8 in 2024. This declining trend could point to diminishing efficiency in utilizing assets or a lag in revenue growth relative to the asset base expansion in the most recent years.
- Revenues
- Consistent and significant growth over the period, increasing more than threefold from 2020 to 2024.
- Total Assets
- Marked increase indicating substantial investment and expansion of asset base.
- Total Asset Turnover
- Initial improvement in asset utilization up to 2022, followed by a decline in efficiency through 2024.
Overall, the data suggests robust top-line growth accompanied by expanding assets, though with some recent indications of declining operational efficiency as measured by asset turnover. This may merit further investigation into asset management and revenue generation strategies to optimize performance going forward.
Equity Turnover
Tesla Inc., equity turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues | ||||||
| Stockholders’ equity | ||||||
| Long-term Activity Ratio | ||||||
| Equity turnover1 | ||||||
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Ford Motor Co. | ||||||
| General Motors Co. | ||||||
| Equity Turnover, Sector | ||||||
| Automobiles & Components | ||||||
| Equity Turnover, Industry | ||||||
| Consumer Discretionary | ||||||
Based on: 10-K (reporting date: 2024-12-31), 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).
1 2024 Calculation
Equity turnover = Revenues ÷ Stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
The financial data reveals notable trends in key metrics over the five-year period ending in 2024. The revenue figures demonstrate consistent and substantial growth, increasing from $31,536 million in 2020 to $97,690 million in 2024. The sharpest increments are observed between 2020 to 2022 and 2022 to 2023, indicating accelerated sales expansion during these years. The growth pace slightly moderates between 2023 and 2024, suggesting a potential plateau or stabilization phase in revenue generation.
Stockholders’ equity also exhibits a strong upward trajectory across the examined periods. Beginning at $22,225 million in 2020, equity rises steadily each year, reaching $72,913 million by 2024. This consistent increase suggests accumulated retained earnings and/or successful capital raising activities, contributing to a strengthened equity base over time.
The equity turnover ratio, calculated as revenues divided by stockholders’ equity, shows variation reflective of the relative growth of revenues compared to equity. It ascended from 1.42 in 2020 to a peak of 1.82 in 2022, indicating increasingly efficient use of equity to generate revenues during that interval. However, the ratio subsequently declines to 1.55 in 2023 and further down to 1.34 in 2024. The decreasing trend post-2022 suggests that equity grew at a faster rate than revenues, potentially signaling capital investment or retained earnings accumulation outpacing revenue increases, thereby slightly lowering capital turnover efficiency.
In summary, the data portrays robust revenue and equity growth over the five years with a peak in equity turnover efficiency around 2022 followed by a moderate decline. These patterns could imply a maturing growth phase characterized by solid capital accumulation and a stabilizing revenue growth rate.