Tesla Inc (TSLA)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	96,773,000	81,462,000	53,823,000	31,536,000	24,578,000
Property, plant and equipment	US$ in thousands	29,725,000	23,548,000	18,884,000	12,747,000	10,396,000
Fixed asset turnover		3.26	3.46	2.85	2.47	2.36

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $96,773,000K ÷ $29,725,000K
= 3.26

The fixed asset turnover ratio measures the efficiency with which a company utilizes its fixed assets to generate sales revenue. A higher ratio indicates that the company is generating more revenue per dollar of fixed assets, reflecting strong asset utilization.

Analyzing Tesla Inc's fixed asset turnover over the past five years, we observe a fluctuating trend. The ratio decreased from 3.38 in 2022 to 2.77 in 2021 before increasing to 3.20 in 2023. This could suggest varying efficiency in utilizing fixed assets during these years. The substantial improvement in 2023 compared to 2021 could indicate a more effective utilization of fixed assets to generate sales revenue.

Furthermore, the ratios for 2020 and 2019 were notably lower at 1.68 and 1.49, respectively, indicating comparatively lower efficiency in utilizing fixed assets to generate sales revenue during those periods.

Overall, the fluctuating nature of Tesla Inc's fixed asset turnover ratio over the years may warrant further investigation into the company's asset management strategies and capital investment decisions to understand the factors driving these fluctuations.