Tesla Inc (TSLA)

Inventory turnover

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	79,113,000	76,925,000	73,825,000	66,131,000	60,609,000	54,940,000	48,965,000	45,339,000	40,217,000	36,023,000	32,634,000	28,329,000	24,906,000	22,221,000	20,625,000	21,285,000	20,509,000	20,299,000	20,487,000	18,441,300
Inventory	US$ in thousands	13,626,000	13,721,000	14,356,000	14,375,000	12,839,000	10,327,000	8,108,000	6,691,000	5,757,000	5,199,000	4,733,000	4,132,000	4,101,000	4,218,000	4,018,000	4,494,000	3,552,000	3,581,000	3,382,360	3,836,850
Inventory turnover		5.81	5.61	5.14	4.60	4.72	5.32	6.04	6.78	6.99	6.93	6.89	6.86	6.07	5.27	5.13	4.74	5.77	5.67	6.06	4.81

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $79,113,000K ÷ $13,626,000K
= 5.81

To analyze Tesla Inc's inventory turnover, we can calculate the average inventory turnover for the past eight quarters. The inventory turnover is calculated as the cost of goods sold divided by the average inventory for the period.

The average inventory turnover for Tesla Inc over the past eight quarters is approximately 5.53. This indicates that the company has been able to turn over its inventory approximately 5.53 times a year.

A high inventory turnover ratio suggests that the company is efficiently managing its inventory and selling products quickly. It can also indicate strong demand for the company's products. However, a very high inventory turnover ratio may also suggest that the company is running low on inventory, which could lead to stockouts and potential sales losses.

On the other hand, a low inventory turnover ratio may indicate overstocking or slow-moving inventory, which could tie up working capital and increase the risk of obsolete inventory.

Overall, Tesla Inc's average inventory turnover of 5.53 reflects efficient management of inventory and suggests strong demand for its products. However, it is important to monitor inventory turnover over time to ensure that Tesla Inc is effectively managing its inventory levels.