Tesla Inc (TSLA)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 97,690,000 | 96,773,000 | 81,462,000 | 53,823,000 | 31,536,000 |
| Property, plant and equipment | US$ in thousands | 35,836,000 | 29,725,000 | 23,548,000 | 18,884,000 | 12,747,000 |
| Fixed asset turnover | 2.73 | 3.26 | 3.46 | 2.85 | 2.47 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $97,690,000K ÷ $35,836,000K
= 2.73
The fixed asset turnover ratio measures a company's ability to generate sales from its fixed assets. Looking at the data for Tesla Inc over the past five years, we can see a positive trend in the fixed asset turnover ratio.
In December 31, 2020, the fixed asset turnover ratio was 2.47, indicating that Tesla generated $2.47 in sales for every $1 of fixed assets. Over the next four years, this ratio increased steadily to reach 3.26 by December 31, 2023, showing that Tesla improved its efficiency in utilizing its fixed assets to generate revenue.
However, there was a slight decrease in the ratio to 2.73 by December 31, 2024. This could suggest a potential decrease in sales relative to the fixed assets in that year.
Overall, the increasing trend in fixed asset turnover ratio for Tesla indicates improved efficiency in utilizing its fixed assets to drive sales over the years, although the slight drop in 2024 may warrant further investigation into the company's asset management strategies.
Peer comparison
Dec 31, 2024