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 (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Tesla Inc. inventory turnover ratio improved from 2018 to 2019 and from 2019 to 2020. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Tesla Inc. receivables turnover ratio deteriorated from 2018 to 2019 and from 2019 to 2020. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Tesla Inc. payables turnover ratio increased from 2018 to 2019 but then decreased significantly from 2019 to 2020. |
| 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. number of days of inventory outstanding improved from 2018 to 2019 and from 2019 to 2020. |
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Tesla Inc. number of days of receivables outstanding deteriorated from 2018 to 2019 and from 2019 to 2020. |
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | |
| 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. number of days of payables outstanding decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level. |
| 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. cash conversion cycle deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level. |
Inventory Turnover
Tesla Inc., inventory turnover calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cost of revenues | 24,906 | 20,509 | 17,419 | 9,536 | 5,401 | |
| Inventory | 4,101 | 3,552 | 3,113 | 2,264 | 2,067 | |
| Short-term Activity Ratio | ||||||
| Inventory turnover1 | 6.07 | 5.77 | 5.59 | 4.21 | 2.61 | |
| Benchmarks | ||||||
| Inventory Turnover, Competitors2 | ||||||
| Ford Motor Co. | 10.43 | 12.49 | 12.15 | 12.78 | 14.18 | |
| General Motors Co. | 9.53 | 10.64 | 12.29 | 10.77 | 9.89 | |
| Inventory Turnover, Sector | ||||||
| Automobiles & Components | 9.35 | 10.75 | 11.36 | 11.02 | 10.82 | |
| Inventory Turnover, Industry | ||||||
| Consumer Discretionary | 7.25 | 7.32 | 7.62 | 7.31 | 7.52 | |
Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).
1 2020 Calculation
Inventory turnover = Cost of revenues ÷ Inventory
= 24,906 ÷ 4,101 = 6.07
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. inventory turnover ratio improved from 2018 to 2019 and from 2019 to 2020. |
Receivables Turnover
Tesla Inc., receivables turnover calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues | 31,536 | 24,578 | 21,461 | 11,759 | 7,000 | |
| Accounts receivable, net | 1,886 | 1,324 | 949 | 515 | 499 | |
| Short-term Activity Ratio | ||||||
| Receivables turnover1 | 16.72 | 18.56 | 22.61 | 22.82 | 14.02 | |
| Benchmarks | ||||||
| Receivables Turnover, Competitors2 | ||||||
| Ford Motor Co. | 11.60 | 15.55 | 13.25 | 13.74 | 12.75 | |
| General Motors Co. | 13.52 | 18.05 | 20.32 | 16.35 | 16.27 | |
| Receivables Turnover, Sector | ||||||
| Automobiles & Components | 12.86 | 16.76 | 16.20 | 15.09 | 14.38 | |
| Receivables Turnover, Industry | ||||||
| Consumer Discretionary | 20.73 | 20.31 | 20.92 | 20.66 | 21.12 | |
Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).
1 2020 Calculation
Receivables turnover = Revenues ÷ Accounts receivable, net
= 31,536 ÷ 1,886 = 16.72
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. receivables turnover ratio deteriorated from 2018 to 2019 and from 2019 to 2020. |
Payables Turnover
Tesla Inc., payables turnover calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cost of revenues | 24,906 | 20,509 | 17,419 | 9,536 | 5,401 | |
| Accounts payable | 6,051 | 3,771 | 3,404 | 2,390 | 1,860 | |
| Short-term Activity Ratio | ||||||
| Payables turnover1 | 4.12 | 5.44 | 5.12 | 3.99 | 2.90 | |
| Benchmarks | ||||||
| Payables Turnover, Competitors2 | ||||||
| Ford Motor Co. | 5.08 | 6.52 | 6.33 | 5.64 | 5.93 | |
| General Motors Co. | 4.89 | 5.26 | 5.41 | 4.80 | 5.06 | |
| Payables Turnover, Sector | ||||||
| Automobiles & Components | 4.88 | 5.85 | 5.81 | 5.16 | 5.35 | |
| Payables Turnover, Industry | ||||||
| Consumer Discretionary | 4.70 | 5.35 | 5.58 | 5.28 | 5.65 | |
Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).
1 2020 Calculation
Payables turnover = Cost of revenues ÷ Accounts payable
= 24,906 ÷ 6,051 = 4.12
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. payables turnover ratio increased from 2018 to 2019 but then decreased significantly from 2019 to 2020. |
Working Capital Turnover
Tesla Inc., working capital turnover calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | 26,717 | 12,103 | 8,306 | 6,571 | 6,260 | |
| Less: Current liabilities | 14,248 | 10,667 | 9,992 | 7,675 | 5,827 | |
| Working capital | 12,469 | 1,436 | (1,686) | (1,104) | 433 | |
| Revenues | 31,536 | 24,578 | 21,461 | 11,759 | 7,000 | |
| Short-term Activity Ratio | ||||||
| Working capital turnover1 | 2.53 | 17.12 | — | — | 16.17 | |
| Benchmarks | ||||||
| Working Capital Turnover, Competitors2 | ||||||
| Ford Motor Co. | 5.93 | 9.02 | 7.77 | 6.84 | 7.79 | |
| General Motors Co. | 107.17 | — | — | — | — | |
| Working Capital Turnover, Sector | ||||||
| Automobiles & Components | 7.75 | 39.11 | 28.98 | 24.13 | 31.70 | |
| Working Capital Turnover, Industry | ||||||
| Consumer Discretionary | 16.26 | 31.30 | 19.91 | 20.39 | 22.87 | |
Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).
1 2020 Calculation
Working capital turnover = Revenues ÷ Working capital
= 31,536 ÷ 12,469 = 2.53
2 Click competitor name to see calculations.
Average Inventory Processing Period
Tesla Inc., average inventory processing period calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Inventory turnover | 6.07 | 5.77 | 5.59 | 4.21 | 2.61 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average inventory processing period1 | 60 | 63 | 65 | 87 | 140 | |
| Benchmarks (no. days) | ||||||
| Average Inventory Processing Period, Competitors2 | ||||||
| Ford Motor Co. | 35 | 29 | 30 | 29 | 26 | |
| General Motors Co. | 38 | 34 | 30 | 34 | 37 | |
| Average Inventory Processing Period, Sector | ||||||
| Automobiles & Components | 39 | 34 | 32 | 33 | 34 | |
| Average Inventory Processing Period, Industry | ||||||
| Consumer Discretionary | 50 | 50 | 48 | 50 | 49 | |
Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).
1 2020 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 6.07 = 60
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. number of days of inventory outstanding improved from 2018 to 2019 and from 2019 to 2020. |
Average Receivable Collection Period
Tesla Inc., average receivable collection period calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Receivables turnover | 16.72 | 18.56 | 22.61 | 22.82 | 14.02 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average receivable collection period1 | 22 | 20 | 16 | 16 | 26 | |
| Benchmarks (no. days) | ||||||
| Average Receivable Collection Period, Competitors2 | ||||||
| Ford Motor Co. | 31 | 23 | 28 | 27 | 29 | |
| General Motors Co. | 27 | 20 | 18 | 22 | 22 | |
| Average Receivable Collection Period, Sector | ||||||
| Automobiles & Components | 28 | 22 | 23 | 24 | 25 | |
| Average Receivable Collection Period, Industry | ||||||
| Consumer Discretionary | 18 | 18 | 17 | 18 | 17 | |
Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).
1 2020 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 16.72 = 22
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. | Tesla Inc. number of days of receivables outstanding deteriorated from 2018 to 2019 and from 2019 to 2020. |
Operating Cycle
Tesla Inc., operating cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 60 | 63 | 65 | 87 | 140 | |
| Average receivable collection period | 22 | 20 | 16 | 16 | 26 | |
| Short-term Activity Ratio | ||||||
| Operating cycle1 | 82 | 83 | 81 | 103 | 166 | |
| Benchmarks | ||||||
| Operating Cycle, Competitors2 | ||||||
| Ford Motor Co. | 66 | 52 | 58 | 56 | 55 | |
| General Motors Co. | 65 | 54 | 48 | 56 | 59 | |
| Operating Cycle, Sector | ||||||
| Automobiles & Components | 67 | 56 | 55 | 57 | 59 | |
| Operating Cycle, Industry | ||||||
| Consumer Discretionary | 68 | 68 | 65 | 68 | 66 | |
Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).
1 2020 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 60 + 22 = 82
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. |
Average Payables Payment Period
Tesla Inc., average payables payment period calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Payables turnover | 4.12 | 5.44 | 5.12 | 3.99 | 2.90 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average payables payment period1 | 89 | 67 | 71 | 91 | 126 | |
| Benchmarks (no. days) | ||||||
| Average Payables Payment Period, Competitors2 | ||||||
| Ford Motor Co. | 72 | 56 | 58 | 65 | 62 | |
| General Motors Co. | 75 | 69 | 67 | 76 | 72 | |
| Average Payables Payment Period, Sector | ||||||
| Automobiles & Components | 75 | 62 | 63 | 71 | 68 | |
| Average Payables Payment Period, Industry | ||||||
| Consumer Discretionary | 78 | 68 | 65 | 69 | 65 | |
Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).
1 2020 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 4.12 = 89
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. number of days of payables outstanding decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level. |
Cash Conversion Cycle
Tesla Inc., cash conversion cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 60 | 63 | 65 | 87 | 140 | |
| Average receivable collection period | 22 | 20 | 16 | 16 | 26 | |
| Average payables payment period | 89 | 67 | 71 | 91 | 126 | |
| Short-term Activity Ratio | ||||||
| Cash conversion cycle1 | -7 | 16 | 10 | 12 | 40 | |
| Benchmarks | ||||||
| Cash Conversion Cycle, Competitors2 | ||||||
| Ford Motor Co. | -6 | -4 | 0 | -9 | -7 | |
| General Motors Co. | -10 | -15 | -19 | -20 | -13 | |
| Cash Conversion Cycle, Sector | ||||||
| Automobiles & Components | -8 | -6 | -8 | -14 | -9 | |
| Cash Conversion Cycle, Industry | ||||||
| Consumer Discretionary | -10 | 0 | 0 | -1 | 1 | |
Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).
1 2020 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 60 + 22 – 89 = -7
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. cash conversion cycle deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level. |