Tesla Inc (TSLA)
Working capital 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 |
| Total current assets | US$ in thousands | 58,360,000 | 49,616,000 | 40,917,000 | 27,100,000 | 26,717,000 |
| Total current liabilities | US$ in thousands | 28,821,000 | 28,748,000 | 26,709,000 | 19,705,000 | 14,248,000 |
| Working capital turnover | 3.31 | 4.64 | 5.73 | 7.28 | 2.53 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $97,690,000K ÷ ($58,360,000K – $28,821,000K)
= 3.31
The working capital turnover ratio for Tesla Inc has shown fluctuations over the past five years. In December 2020, the ratio was 2.53, indicating that Tesla generated $2.53 in revenue for every dollar of working capital invested. The ratio significantly increased to 7.28 by December 2021, reflecting a more efficient utilization of working capital. However, by December 2022, the ratio decreased to 5.73, suggesting a slight decrease in the efficiency of working capital management.
In the following years, the working capital turnover ratio continued to decline. By December 2023, the ratio dropped to 4.64, indicating a further reduction in the efficiency of working capital utilization. In December 2024, the ratio decreased to 3.31, hinting at a potential liquidity or efficiency concern as Tesla may be generating less revenue relative to its working capital.
Overall, the trend in Tesla's working capital turnover ratio shows fluctuations with both improvements and deteriorations in efficiency over the years, pointing to the need for continuous monitoring and assessment of working capital management practices.
Peer comparison
Dec 31, 2024