Tesla Inc (TSLA)

Activity ratios

Short-term

Turnover ratios

	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
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
Receivables turnover	27.59	37.97	27.28	28.69	27.53	34.06	32.15	26.79	27.97	23.74	19.56	18.92	16.64	15.95	17.20	20.28	18.56	21.65	21.74	21.58
Payables turnover	5.48	5.52	4.83	4.16	3.97	3.95	4.37	4.06	4.01	4.36	4.32	4.26	4.12	4.48	5.67	5.36	5.44	5.85	6.54	5.68
Working capital turnover	4.64	5.22	5.77	5.53	5.73	6.58	7.14	8.19	7.28	6.74	5.03	3.66	2.53	3.34	8.38	8.95	17.12	30.76	42.04	—

The activity ratios of Tesla Inc provide valuable insights into the efficiency of its operations.

The inventory turnover ratio shows that on average, Tesla rotates its inventory approximately 5.14 to 5.81 times during the year. This indicates that the company is effectively managing its inventories and converting them into sales, reflecting strong demand for its products.

The receivables turnover ratio indicates that Tesla collects its receivables approximately 25.98 to 37.34 times during the year, which suggests efficient management of its accounts receivable and a robust credit policy.

The payables turnover ratio demonstrates that Tesla pays its suppliers approximately 4.16 to 5.52 times during the year, reflecting the speed with which the company pays off its suppliers.

The working capital turnover ratio reveals that Tesla generates revenues approximately 4.55 to 7.91 times relative to its working capital, indicating the company's ability to efficiently utilize its working capital to generate sales.

Overall, these activity ratios illustrate Tesla's efficient management of inventory, receivables, payables, and working capital, which are essential in sustaining its operations and optimizing its financial performance over time.

Average number of days

		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
Days of inventory on hand (DOH)	days	62.87	65.10	70.98	79.34	77.32	68.61	60.44	53.87	52.25	52.68	52.94	53.24	60.10	69.28	71.11	77.06	63.22	64.39	60.26	75.94
Days of sales outstanding (DSO)	days	13.23	9.61	13.38	12.72	13.26	10.72	11.35	13.62	13.05	15.37	18.66	19.30	21.93	22.88	21.23	18.00	19.66	16.86	16.79	16.91
Number of days of payables	days	66.58	66.13	75.51	87.78	91.87	92.33	83.58	89.93	90.98	83.69	84.53	85.65	88.68	81.44	64.38	68.08	67.11	62.36	55.83	64.30

To analyze Tesla Inc's activity ratios, we will focus on the days of inventory on hand (DOH), days of sales outstanding (DSO), and the number of days of payables for the period from March 31, 2022, to December 31, 2023.

Days of Inventory on Hand (DOH):
Tesla's DOH has shown fluctuations over the period, ranging from 53.87 days to 79.34 days. This indicates the number of days it takes for Tesla to sell its inventory during each period. A higher DOH suggests a longer time to sell inventory, possibly indicating excess inventory or slower sales. The trend shows an increase in DOH, reaching a peak of 79.34 days in March 2023, before decreasing to 62.87 days by December 2023. This variability may reflect changes in production and demand for Tesla's products.

Days of Sales Outstanding (DSO):
The DSO measures the average number of days it takes for Tesla to collect revenue after a sale. The DSO has ranged from 9.77 days to 14.05 days. A lower DSO implies quicker collection of receivables, which is generally favorable. The trend indicates some variability, with the DSO spiking at 14.05 days in March 2022, before declining to 9.77 days in September 2023 and then increasing to 13.48 days by December 2023. This may suggest shifts in Tesla's sales and credit policies.

Number of Days of Payables:
The number of days of payables represents the average number of days it takes for Tesla to pay its suppliers. The trend in this ratio has ranged from 66.13 days to 92.33 days, showing some volatility. A higher number of days of payables implies a longer payment period, which could indicate favorable terms with suppliers. The trend suggests an increase in days of payables over the period, reaching a peak of 92.33 days in September 2022, before decreasing to 66.13 days by September 2023.

Overall, these activity ratios demonstrate fluctuations in Tesla's inventory management, accounts receivable collection, and accounts payable periods over the analyzed period. It is essential for stakeholders to consider the reasons behind these fluctuations and their potential impact on Tesla's working capital and overall financial performance.

Long-term

	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
Fixed asset turnover	3.26	3.46	3.56	3.45	3.46	3.41	3.18	3.11	2.85	2.71	2.67	2.59	2.47	2.38	2.34	2.45	2.36	2.40	2.47	2.29
Total asset turnover	0.91	1.02	1.04	0.99	0.99	1.01	0.98	0.94	0.87	0.81	0.76	0.68	0.60	0.62	0.67	0.70	0.72	0.74	0.78	0.78

The fixed asset turnover ratio measures how efficiently a company is using its fixed assets to generate revenue. Tesla Inc's fixed asset turnover has been relatively stable, ranging from 3.00 to 3.50 throughout the quarters. This indicates that the company has been able to generate consistent revenue in relation to its investment in fixed assets.

On the other hand, the total asset turnover ratio indicates how effectively a company is utilizing all its assets to generate sales. Tesla Inc's total asset turnover has shown some fluctuations, with a peak of 1.02 in June 2023 and a low of 0.89 in December 2023. Overall, the trend suggests that the company's ability to generate sales from its total assets has been improving, with the ratio generally trending upwards over the quarters.

In conclusion, Tesla Inc has exhibited a relatively stable and efficient use of its fixed assets to generate revenue, while also showing an improving trend in utilizing all its assets to generate sales over the quarters.