Tesla Inc (TSLA)
Working capital 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 |
| Total current assets | US$ in thousands | 49,616,000 | 40,917,000 | 27,100,000 | 26,717,000 | 12,103,000 |
| Total current liabilities | US$ in thousands | 28,748,000 | 26,709,000 | 19,705,000 | 14,248,000 | 10,667,000 |
| Working capital turnover | 4.64 | 5.73 | 7.28 | 2.53 | 17.12 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $96,773,000K ÷ ($49,616,000K – $28,748,000K)
= 4.64
The working capital turnover ratio measures how efficiently a company is using its working capital to generate sales. A higher ratio indicates better efficiency in utilizing working capital.
Looking at Tesla Inc's working capital turnover over the past 5 years, we observe a decreasing trend. The ratio was 17.12 in 2019, indicating a very high efficiency in utilizing working capital to generate sales. However, the ratio decreased to 2.53 in 2020, suggesting a significant decline in the efficiency of working capital utilization. This trend continued in 2021 and 2022, with ratios of 7.08 and 5.61 respectively, still reflecting a decrease in efficiency compared to 2019. In 2023, the ratio further decreased to 4.55.
This downward trend in working capital turnover may imply that Tesla Inc is becoming less efficient in utilizing its working capital to generate sales. It could be an important aspect to consider when evaluating the company's overall financial performance and operational efficiency. Further analysis and investigation into the factors contributing to this trend would be valuable in understanding the company's financial management and working capital utilization strategies.
Peer comparison
Dec 31, 2023