Analysis of Long-term (Investment) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
Tesla Inc., long-term (investment) activity ratios (quarterly data)
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
An analysis of long-term activity ratios reveals a consistent pattern of peaking efficiency in mid-2023, followed by a sustained downward trend across all measured metrics through the second quarter of 2026. This suggests a systemic decline in the efficiency with which assets and equity are utilized to generate revenue, indicating that the growth of the investment base has outpaced the growth of top-line revenue.
- Net Fixed Asset Turnover
- A period of initial improvement is observed from March 2022, where the ratio stood at 3.11, reaching a peak of 3.56 by June 2023. Following this peak, a steady contraction occurred, with the ratio falling to 2.19 by June 2026. The inclusion of operating lease right-of-use assets mirrors this trajectory, peaking at 3.16 in June 2023 before declining to 1.93. This trend indicates a diminishing return on investment in fixed assets over the latter half of the analyzed period.
- Total Asset Turnover
- Efficiency in total asset utilization peaked at 1.04 in June 2023. Subsequent quarters show a continuous decline, with the ratio dropping below the 1.0 threshold in late 2023 and reaching 0.70 by June 2026. The downward movement suggests that the company's overall asset base is expanding more rapidly than its ability to generate proportional increases in sales.
- Equity Turnover
- Equity turnover reached its maximum value of 1.88 in September 2022. From that point, a general downward trajectory is evident, characterized by a significant drop starting in December 2023 (1.55) and continuing toward a low of 1.19 by June 2026. This indicates a reduction in the efficiency of shareholders' equity in driving revenue growth.
The synchronized decline across fixed asset, total asset, and equity turnover ratios suggests a broader transition in the company's operational scale. The compression of these ratios signifies that the investment phase has led to a larger balance sheet that is not yet being fully leveraged to maximize revenue output.
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Net Fixed Asset Turnover
Tesla Inc., net fixed asset turnover calculation (quarterly data)
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Revenues | 28,236) | 22,387) | 24,901) | 28,095) | 22,496) | 19,335) | 25,707) | 25,182) | 25,500) | 21,301) | 25,167) | 23,350) | 24,927) | 23,329) | 24,318) | 21,454) | 16,934) | 18,756) | ||||||
| Property, plant and equipment, net | 47,255) | 43,213) | 40,643) | 39,407) | 38,574) | 37,088) | 35,836) | 36,116) | 32,902) | 31,436) | 29,725) | 27,744) | 26,389) | 24,969) | 23,548) | 21,926) | 21,093) | 20,027) | ||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||
| Net fixed asset turnover1 | 2.19 | 2.27 | 2.33 | 2.43 | 2.40 | 2.58 | 2.73 | 2.69 | 2.90 | 3.01 | 3.26 | 3.46 | 3.56 | 3.45 | 3.46 | 3.41 | 3.18 | 3.11 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||||||||||||||||||||
| Ford Motor Co. | 4.36 | 4.63 | 4.67 | 3.95 | 3.93 | 4.01 | 4.12 | 4.15 | 4.15 | 4.11 | 4.06 | 4.18 | 4.17 | 4.11 | 4.00 | 4.01 | 3.84 | 3.41 | ||||||
| General Motors Co. | 3.16 | 3.21 | 3.25 | 3.28 | 3.28 | 3.30 | 3.31 | 3.25 | 3.19 | 3.12 | 3.13 | 3.20 | 3.26 | 3.15 | 3.18 | 3.14 | 2.84 | 2.81 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q2 2026 Calculation
Net fixed asset turnover
= (RevenuesQ2 2026
+ RevenuesQ1 2026
+ RevenuesQ4 2025
+ RevenuesQ3 2025)
÷ Property, plant and equipment, net
= (28,236 + 22,387 + 24,901 + 28,095)
÷ 47,255 = 2.19
2 Click competitor name to see calculations.
An examination of the long-term activity ratios reveals a significant shift in the efficiency of fixed asset utilization between March 2022 and June 2026. While revenues have experienced overall growth, the pace of investment in property, plant, and equipment has accelerated more rapidly, leading to a steady erosion of the net fixed asset turnover ratio over the long term.
- Revenue and Asset Growth Trends
- Quarterly revenues exhibited volatility but trended upward, moving from $18.7 billion in March 2022 to a peak of $28.2 billion in June 2026. Concurrently, net property, plant, and equipment showed a consistent and aggressive increase, growing from $20.0 billion to $47.2 billion over the same period. This indicates a sustained strategy of capital expansion and investment in production capacity.
- Net Fixed Asset Turnover Performance
- The net fixed asset turnover ratio initially improved, rising from 3.11 in March 2022 to a peak of 3.56 in June 2023. However, after the second quarter of 2023, a persistent downward trend is observed. The ratio declined to 2.19 by June 2026, marking a significant reduction in the revenue-generating efficiency of the company's fixed asset base.
- Analysis of Asset Productivity
- The divergence between the growth in the asset base and the growth in revenue suggests that capital expenditures have outpaced sales expansion. The decline in the turnover ratio indicates that each dollar invested in net fixed assets is generating progressively less revenue, which is often characteristic of a company building out massive capacity in anticipation of future demand that has not yet fully materialized in current revenue streams.
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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 (quarterly data)
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q2 2026 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset)
= (RevenuesQ2 2026
+ RevenuesQ1 2026
+ RevenuesQ4 2025
+ RevenuesQ3 2025)
÷ Property, plant and equipment, net (including operating lease, right-of-use asset)
= (28,236 + 22,387 + 24,901 + 28,095)
÷ 53,641 = 1.93
The analysis of the long-term investment activity reveals a significant divergence between the expansion of the fixed asset base and the growth of generated revenues, leading to a progressive decline in asset utilization efficiency over the observed period.
- Net Fixed Asset Turnover Trend
- The net fixed asset turnover ratio experienced an initial phase of improvement, rising from 2.80 in March 2022 to a peak of 3.16 in June 2023. However, from mid-2023 onward, a consistent downward trajectory is observed, with the ratio falling to 1.93 by June 2026. This trend indicates that each dollar invested in fixed assets is generating progressively less revenue over time.
- Fixed Asset Accumulation
- A steady and aggressive increase in property, plant, and equipment (including right-of-use assets) is evident. The asset base grew from 22,208 million US dollars in March 2022 to 53,641 million US dollars by June 2026. This represents a substantial expansion of the physical infrastructure and capital investment throughout the analyzed timeframe.
- Revenue Performance and Asset Correlation
- While revenues showed growth and periodic volatility, the increase was not proportional to the growth of the fixed asset base. Revenues fluctuated between approximately 16,934 million and 28,236 million US dollars. The failure of revenue growth to keep pace with the more than doubling of net fixed assets is the primary driver behind the compression of the turnover ratio.
- Operational Efficiency Insight
- The data suggests a period of heavy capital expenditure where capacity expansion preceded revenue realization. The decline in the turnover ratio from 3.16 to 1.93 reflects a decrease in the efficiency of fixed asset employment, indicating that the company is currently operating with significant excess capacity or is in a prolonged phase of scaling its production infrastructure before achieving corresponding sales growth.
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Total Asset Turnover
Tesla Inc., total asset turnover calculation (quarterly data)
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Revenues | 28,236) | 22,387) | 24,901) | 28,095) | 22,496) | 19,335) | 25,707) | 25,182) | 25,500) | 21,301) | 25,167) | 23,350) | 24,927) | 23,329) | 24,318) | 21,454) | 16,934) | 18,756) | ||||||
| Total assets | 148,524) | 143,724) | 137,806) | 133,735) | 128,567) | 125,111) | 122,070) | 119,852) | 112,832) | 109,226) | 106,618) | 93,941) | 90,591) | 86,833) | 82,338) | 74,426) | 68,513) | 66,038) | ||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||
| Total asset turnover1 | 0.70 | 0.68 | 0.69 | 0.72 | 0.72 | 0.77 | 0.80 | 0.81 | 0.84 | 0.87 | 0.91 | 1.02 | 1.04 | 0.99 | 0.99 | 1.01 | 0.98 | 0.94 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Total Asset Turnover, Competitors2 | ||||||||||||||||||||||||
| Ford Motor Co. | 0.61 | 0.62 | 0.60 | 0.59 | 0.59 | 0.60 | 0.61 | 0.60 | 0.61 | 0.61 | 0.61 | 0.61 | 0.60 | 0.61 | 0.58 | 0.58 | 0.56 | 0.49 | ||||||
| General Motors Co. | 0.60 | 0.60 | 0.60 | 0.59 | 0.59 | 0.61 | 0.61 | 0.58 | 0.58 | 0.58 | 0.58 | 0.56 | 0.57 | 0.55 | 0.55 | 0.52 | 0.47 | 0.47 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q2 2026 Calculation
Total asset turnover
= (RevenuesQ2 2026
+ RevenuesQ1 2026
+ RevenuesQ4 2025
+ RevenuesQ3 2025)
÷ Total assets
= (28,236 + 22,387 + 24,901 + 28,095)
÷ 148,524 = 0.70
2 Click competitor name to see calculations.
The analysis of total asset turnover reveals a significant shift in operational efficiency over the period from March 31, 2022, to June 30, 2026. While the company experienced a period of relative stability and slight growth in asset efficiency through the first half of 2023, a consistent downward trend emerged thereafter, indicating that asset growth has outpaced revenue generation.
- Revenue Trends
- Revenues exhibit a general upward trajectory with notable quarterly volatility. Starting at 18,756 million USD in March 2022, revenues reached a peak of 28,236 million USD by June 2026. Despite this growth, the increases are non-linear, characterized by periodic fluctuations that prevent a steady acceleration in sales volume.
- Total Asset Expansion
- A continuous and aggressive expansion of the asset base is observed. Total assets grew from 66,038 million USD in March 2022 to 148,524 million USD by June 2026. This represents a substantial increase in the scale of the balance sheet, reflecting ongoing capital investment and asset accumulation.
- Total Asset Turnover Ratio
- The turnover ratio peaked at 1.04 in June 2023, signifying a period of optimal asset utilization. However, from December 2023 onward, the ratio entered a sustained decline, dropping from 0.91 to a low of 0.68 in March 2026, before a marginal recovery to 0.70 in June 2026. This decline indicates a diminishing capacity to convert invested assets into top-line revenue.
The divergence between the steady increase in total assets and the more volatile growth in revenues has led to a compression of the total asset turnover ratio. The data suggests that for every dollar of assets added to the balance sheet, the corresponding increase in revenue has diminished over time. This trend points toward a decrease in capital efficiency and suggests that recent investments in assets have not yet yielded proportional increases in sales performance.
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Equity Turnover
Tesla Inc., equity turnover calculation (quarterly data)
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Revenues | 28,236) | 22,387) | 24,901) | 28,095) | 22,496) | 19,335) | 25,707) | 25,182) | 25,500) | 21,301) | 25,167) | 23,350) | 24,927) | 23,329) | 24,318) | 21,454) | 16,934) | 18,756) | ||||||
| Stockholders’ equity | 86,858) | 84,116) | 82,137) | 79,970) | 77,314) | 74,653) | 72,913) | 69,931) | 66,468) | 64,378) | 62,634) | 53,466) | 51,130) | 48,054) | 44,704) | 39,851) | 36,376) | 34,085) | ||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||
| Equity turnover1 | 1.19 | 1.16 | 1.15 | 1.20 | 1.20 | 1.28 | 1.34 | 1.39 | 1.43 | 1.47 | 1.55 | 1.79 | 1.84 | 1.79 | 1.82 | 1.88 | 1.85 | 1.82 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Equity Turnover, Competitors2 | ||||||||||||||||||||||||
| Ford Motor Co. | 4.88 | 4.71 | 4.84 | 3.72 | 3.83 | 3.81 | 3.85 | 3.86 | 3.88 | 3.89 | 3.88 | 3.71 | 3.67 | 3.68 | 3.45 | 3.39 | 3.14 | 2.78 | ||||||
| General Motors Co. | 2.72 | 2.67 | 2.75 | 2.57 | 2.58 | 2.68 | 2.72 | 2.36 | 2.38 | 2.41 | 2.45 | 2.12 | 2.18 | 2.12 | 2.12 | 2.06 | 1.86 | 1.89 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q2 2026 Calculation
Equity turnover
= (RevenuesQ2 2026
+ RevenuesQ1 2026
+ RevenuesQ4 2025
+ RevenuesQ3 2025)
÷ Stockholders’ equity
= (28,236 + 22,387 + 24,901 + 28,095)
÷ 86,858 = 1.19
2 Click competitor name to see calculations.
An analysis of the company's long-term activity indicates a widening divergence between the growth of its equity base and its revenue generation capabilities. While both revenues and stockholders' equity have increased in absolute terms over the period from March 2022 to June 2026, the rate of equity accumulation has consistently outpaced revenue growth, resulting in a sustained decline in the equity turnover ratio.
- Revenue Performance
- Revenues demonstrate a general upward trajectory with periodic volatility. Starting at 18,756 million USD in March 2022, figures reached a peak of 28,236 million USD by June 2026. Notable fluctuations are observed in the first quarters of 2024 and 2025, where revenues dipped before recovering in subsequent periods, suggesting seasonal variability or cyclical market pressures.
- Stockholders' Equity Growth
- The company's equity base exhibits strong, uninterrupted growth. Stockholders' equity rose from 34,085 million USD in March 2022 to 86,858 million USD by June 2026. This steady increase reflects a consistent accumulation of retained earnings or capital injections, significantly strengthening the balance sheet over the five-year span.
- Equity Turnover Trend
- The equity turnover ratio reveals a clear downward trend. After maintaining a peak range between 1.82 and 1.88 from March 2022 through September 2023, the ratio began a steady decline starting in December 2023 (1.55). The ratio reached its lowest points between December 2025 and March 2026, hovering around 1.15 to 1.16, before a slight uptick to 1.19 in June 2026.
- Efficiency Implications
- The decline in equity turnover suggests a reduction in the efficiency with which the company utilizes its shareholders' capital to generate sales. The transition from a ratio of 1.88 in September 2022 to 1.19 in June 2026 indicates that the company is requiring more equity to support each dollar of revenue, which may point toward underutilized capacity or a shift in the business model toward higher capital intensity.
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