Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Tesla Inc., short-term (operating) activity ratios
Based on: 10-K (filing date: 2020-02-13), 10-K (filing date: 2019-02-19), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-03-01), 10-K (filing date: 2016-02-24).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Tesla Inc.’s inventory turnover ratio improved from 2017 to 2018 and from 2018 to 2019. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Tesla Inc.’s receivables turnover ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Tesla Inc.’s payables turnover ratio increased from 2017 to 2018 and from 2018 to 2019. |
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | Tesla Inc.’s number of days of inventory outstanding improved from 2017 to 2018 and from 2018 to 2019. |
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | |
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Tesla Inc.’s operating cycle improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019. |
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Tesla Inc.’s number of days of payables outstanding decreased from 2017 to 2018 and from 2018 to 2019. |
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Tesla Inc.’s cash conversion cycle improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019. |
Inventory Turnover
Tesla Inc., inventory turnover calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cost of revenues | 20,509 | 17,419 | 9,536 | 5,401 | 3,123 | |
| Inventory | 3,552 | 3,113 | 2,264 | 2,067 | 1,278 | |
| Short-term Activity Ratio | ||||||
| Inventory turnover1 | 5.77 | 5.59 | 4.21 | 2.61 | 2.44 | |
| Benchmarks | ||||||
| Inventory Turnover, Competitors2 | ||||||
| General Motors Co. | 10.64 | 12.29 | 10.77 | 9.89 | 9.32 | |
| Inventory Turnover, Sector | ||||||
| Automobiles & Parts | 9.40 | 10.68 | 9.62 | 8.94 | 8.74 | |
| Inventory Turnover, Industry | ||||||
| Consumer Goods | 5.72 | 6.18 | 5.93 | 6.02 | 6.05 | |
Based on: 10-K (filing date: 2020-02-13), 10-K (filing date: 2019-02-19), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-03-01), 10-K (filing date: 2016-02-24).
1 2019 Calculation
Inventory turnover = Cost of revenues ÷ Inventory
= 20,509 ÷ 3,552 = 5.77
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Tesla Inc.’s inventory turnover ratio improved from 2017 to 2018 and from 2018 to 2019. |
Receivables Turnover
Tesla Inc., receivables turnover calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues | 24,578 | 21,461 | 11,759 | 7,000 | 4,046 | |
| Accounts receivable, net | 1,324 | 949 | 515 | 499 | 169 | |
| Short-term Activity Ratio | ||||||
| Receivables turnover1 | 18.56 | 22.61 | 22.82 | 14.02 | 23.95 | |
| Benchmarks | ||||||
| Receivables Turnover, Competitors2 | ||||||
| General Motors Co. | 18.05 | 20.32 | 16.35 | 16.27 | 17.50 | |
| Receivables Turnover, Sector | ||||||
| Automobiles & Parts | 18.14 | 20.61 | 16.73 | 16.16 | 17.63 | |
| Receivables Turnover, Industry | ||||||
| Consumer Goods | 13.25 | 14.35 | 13.22 | 13.55 | 14.22 | |
Based on: 10-K (filing date: 2020-02-13), 10-K (filing date: 2019-02-19), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-03-01), 10-K (filing date: 2016-02-24).
1 2019 Calculation
Receivables turnover = Revenues ÷ Accounts receivable, net
= 24,578 ÷ 1,324 = 18.56
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Tesla Inc.’s receivables turnover ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |
Payables Turnover
Tesla Inc., payables turnover calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cost of revenues | 20,509 | 17,419 | 9,536 | 5,401 | 3,123 | |
| Accounts payable | 3,771 | 3,404 | 2,390 | 1,860 | 916 | |
| Short-term Activity Ratio | ||||||
| Payables turnover1 | 5.44 | 5.12 | 3.99 | 2.90 | 3.41 | |
| Benchmarks | ||||||
| Payables Turnover, Competitors2 | ||||||
| General Motors Co. | 5.26 | 5.41 | 4.80 | 5.06 | 5.33 | |
| Payables Turnover, Sector | ||||||
| Automobiles & Parts | 5.29 | 5.37 | 4.73 | 4.92 | 5.26 | |
| Payables Turnover, Industry | ||||||
| Consumer Goods | 4.46 | 4.70 | 4.54 | 4.76 | 5.28 | |
Based on: 10-K (filing date: 2020-02-13), 10-K (filing date: 2019-02-19), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-03-01), 10-K (filing date: 2016-02-24).
1 2019 Calculation
Payables turnover = Cost of revenues ÷ Accounts payable
= 20,509 ÷ 3,771 = 5.44
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Tesla Inc.’s payables turnover ratio increased from 2017 to 2018 and from 2018 to 2019. |
Working Capital Turnover
Tesla Inc., working capital turnover calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | 12,103 | 8,306 | 6,571 | 6,260 | 2,792 | |
| Less: Current liabilities | 10,667 | 9,992 | 7,675 | 5,827 | 2,816 | |
| Working capital | 1,436 | (1,686) | (1,104) | 433 | (25) | |
| Revenues | 24,578 | 21,461 | 11,759 | 7,000 | 4,046 | |
| Short-term Activity Ratio | ||||||
| Working capital turnover1 | 17.12 | — | — | 16.17 | — | |
| Benchmarks | ||||||
| Working Capital Turnover, Competitors2 | ||||||
| General Motors Co. | — | — | — | — | 22.31 | |
| Working Capital Turnover, Sector | ||||||
| Automobiles & Parts | — | — | — | — | 23.01 | |
| Working Capital Turnover, Industry | ||||||
| Consumer Goods | — | — | 29.22 | 32.63 | 19.11 | |
Based on: 10-K (filing date: 2020-02-13), 10-K (filing date: 2019-02-19), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-03-01), 10-K (filing date: 2016-02-24).
1 2019 Calculation
Working capital turnover = Revenues ÷ Working capital
= 24,578 ÷ 1,436 = 17.12
2 Click competitor name to see calculations.
Average Inventory Processing Period
Tesla Inc., average inventory processing period calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Inventory turnover | 5.77 | 5.59 | 4.21 | 2.61 | 2.44 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average inventory processing period1 | 63 | 65 | 87 | 140 | 149 | |
| Benchmarks (no. days) | ||||||
| Average Inventory Processing Period, Competitors2 | ||||||
| General Motors Co. | 34 | 30 | 34 | 37 | 39 | |
| Average Inventory Processing Period, Sector | ||||||
| Automobiles & Parts | 39 | 34 | 38 | 41 | 42 | |
| Average Inventory Processing Period, Industry | ||||||
| Consumer Goods | 64 | 59 | 62 | 61 | 60 | |
Based on: 10-K (filing date: 2020-02-13), 10-K (filing date: 2019-02-19), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-03-01), 10-K (filing date: 2016-02-24).
1 2019 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 5.77 = 63
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | Tesla Inc.’s number of days of inventory outstanding improved from 2017 to 2018 and from 2018 to 2019. |
Average Receivable Collection Period
Tesla Inc., average receivable collection period calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Receivables turnover | 18.56 | 22.61 | 22.82 | 14.02 | 23.95 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average receivable collection period1 | 20 | 16 | 16 | 26 | 15 | |
| Benchmarks (no. days) | ||||||
| Average Receivable Collection Period, Competitors2 | ||||||
| General Motors Co. | 20 | 18 | 22 | 22 | 21 | |
| Average Receivable Collection Period, Sector | ||||||
| Automobiles & Parts | 20 | 18 | 22 | 23 | 21 | |
| Average Receivable Collection Period, Industry | ||||||
| Consumer Goods | 28 | 25 | 28 | 27 | 26 | |
Based on: 10-K (filing date: 2020-02-13), 10-K (filing date: 2019-02-19), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-03-01), 10-K (filing date: 2016-02-24).
1 2019 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 18.56 = 20
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. |
Operating Cycle
Tesla Inc., operating cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 63 | 65 | 87 | 140 | 149 | |
| Average receivable collection period | 20 | 16 | 16 | 26 | 15 | |
| Short-term Activity Ratio | ||||||
| Operating cycle1 | 83 | 81 | 103 | 166 | 164 | |
| Benchmarks | ||||||
| Operating Cycle, Competitors2 | ||||||
| General Motors Co. | 54 | 48 | 56 | 59 | 60 | |
| Operating Cycle, Sector | ||||||
| Automobiles & Parts | 59 | 52 | 60 | 64 | 63 | |
| Operating Cycle, Industry | ||||||
| Consumer Goods | 92 | 84 | 90 | 88 | 86 | |
Based on: 10-K (filing date: 2020-02-13), 10-K (filing date: 2019-02-19), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-03-01), 10-K (filing date: 2016-02-24).
1 2019 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 63 + 20 = 83
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Tesla Inc.’s operating cycle improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019. |
Average Payables Payment Period
Tesla Inc., average payables payment period calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Payables turnover | 5.44 | 5.12 | 3.99 | 2.90 | 3.41 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average payables payment period1 | 67 | 71 | 91 | 126 | 107 | |
| Benchmarks (no. days) | ||||||
| Average Payables Payment Period, Competitors2 | ||||||
| General Motors Co. | 69 | 67 | 76 | 72 | 68 | |
| Average Payables Payment Period, Sector | ||||||
| Automobiles & Parts | 69 | 68 | 77 | 74 | 69 | |
| Average Payables Payment Period, Industry | ||||||
| Consumer Goods | 82 | 78 | 80 | 77 | 69 | |
Based on: 10-K (filing date: 2020-02-13), 10-K (filing date: 2019-02-19), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-03-01), 10-K (filing date: 2016-02-24).
1 2019 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 5.44 = 67
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Tesla Inc.’s number of days of payables outstanding decreased from 2017 to 2018 and from 2018 to 2019. |
Cash Conversion Cycle
Tesla Inc., cash conversion cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 63 | 65 | 87 | 140 | 149 | |
| Average receivable collection period | 20 | 16 | 16 | 26 | 15 | |
| Average payables payment period | 67 | 71 | 91 | 126 | 107 | |
| Short-term Activity Ratio | ||||||
| Cash conversion cycle1 | 16 | 10 | 12 | 40 | 57 | |
| Benchmarks | ||||||
| Cash Conversion Cycle, Competitors2 | ||||||
| General Motors Co. | -15 | -19 | -20 | -13 | -8 | |
| Cash Conversion Cycle, Sector | ||||||
| Automobiles & Parts | -10 | -16 | -17 | -10 | -6 | |
| Cash Conversion Cycle, Industry | ||||||
| Consumer Goods | 10 | 6 | 10 | 11 | 17 | |
Based on: 10-K (filing date: 2020-02-13), 10-K (filing date: 2019-02-19), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-03-01), 10-K (filing date: 2016-02-24).
1 2019 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 63 + 20 – 67 = 16
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Tesla Inc.’s cash conversion cycle improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019. |