Tesla Inc (TSLA)
Working capital turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 97,690,000 | 97,150,000 | 95,318,000 | 94,745,000 | 96,773,000 | 95,924,000 | 94,028,000 | 86,035,000 | 81,462,000 | 74,863,000 | 67,166,000 | 62,190,000 | 53,823,000 | 46,848,000 | 41,862,000 | 35,940,000 | 31,536,000 | 28,176,000 | 25,708,000 | 26,022,000 |
| Total current assets | US$ in thousands | 58,360,000 | 56,379,000 | 52,977,000 | 50,535,000 | 49,616,000 | 45,026,000 | 43,875,000 | 42,997,000 | 40,917,000 | 35,990,000 | 31,222,000 | 29,050,000 | 27,100,000 | 25,002,000 | 24,693,000 | 24,705,000 | 26,717,000 | 21,744,000 | 15,336,000 | 14,893,000 |
| Total current liabilities | US$ in thousands | 28,821,000 | 30,577,000 | 27,729,000 | 29,453,000 | 28,748,000 | 26,640,000 | 27,592,000 | 27,436,000 | 26,709,000 | 24,611,000 | 21,821,000 | 21,455,000 | 19,705,000 | 18,051,000 | 16,371,000 | 14,877,000 | 14,248,000 | 13,302,000 | 12,270,000 | 11,986,000 |
| Working capital turnover | 3.31 | 3.77 | 3.78 | 4.49 | 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 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $97,690,000K ÷ ($58,360,000K – $28,821,000K)
= 3.31
Based on the working capital turnover data provided for Tesla Inc from March 31, 2020, to December 31, 2024, the company's efficiency in utilizing its working capital has fluctuated over time.
Initially, the working capital turnover was high, with a value of 8.95 on March 31, 2020, indicating that Tesla was able to generate significant sales revenue relative to its working capital. However, there was a slight decline in the subsequent quarter on June 30, 2020, with a working capital turnover of 8.38.
The trend of decreasing working capital turnover continued throughout 2020 and into 2021, reaching a low of 2.53 on December 31, 2020. This significant drop may suggest inefficiencies in managing working capital during this period.
From March 31, 2021, onwards, there was an improvement in the working capital turnover, indicating better utilization of working capital. The company's working capital turnover increased steadily, reaching a peak of 8.19 on March 31, 2022. Subsequently, there were fluctuations in the working capital turnover ratio, indicating some variability in Tesla's efficiency in generating sales from its working capital.
Overall, Tesla's working capital turnover ratio has shown variability over the years, with fluctuations reflecting the company's changing efficiency in managing working capital to generate sales revenue. It is essential for Tesla to maintain an optimal working capital turnover ratio to ensure effective utilization of its resources for sustainable business operations.
Peer comparison
Dec 31, 2024