Tesla Inc (TSLA)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 18.25% | 25.60% | 25.28% | 21.02% | 16.56% |
| Operating profit margin | 9.19% | 16.76% | 12.12% | 6.32% | -0.28% |
| Pretax margin | 10.33% | 16.80% | 11.55% | 3.21% | -3.06% |
| Net profit margin | 15.50% | 15.41% | 10.25% | 2.29% | -3.51% |
Tesla Inc's profitability ratios indicate a fluctuating trend over the past five years. The gross profit margin, which measures the percentage of revenue remaining after deducting the cost of goods sold, has shown a slight decrease from 23.94% in 2022 to 16.71% in 2023. This may suggest increasing production or operating costs relative to sales.
The operating profit margin, representing the portion of revenue left after covering operating expenses, has also displayed variability. It decreased from 15.13% in 2022 to 7.48% in 2023, possibly indicating higher operating expenses compared to revenues.
The pretax margin, which reflects the company's earnings before taxes as a percentage of revenue, has shown a similar trend, declining from 17.22% in 2022 to 10.50% in 2023. This suggests that Tesla's profitability before accounting for taxes has decreased over the past year.
The net profit margin, indicating the company's net income as a percentage of revenue, has exhibited fluctuation, with a significant increase from 10.55% in 2021 to 15.79% in 2022, and maintaining this level in 2023. This may indicate improved efficiency in managing non-operating expenses and taxes. Overall, while Tesla's profitability ratios have displayed variability, the company has achieved a notable improvement in net profit margin, which may indicate effective cost management and operational performance.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 8.34% | 16.59% | 10.50% | 3.82% | -0.20% |
| Return on assets (ROA) | 14.07% | 15.25% | 8.88% | 1.38% | -2.51% |
| Return on total capital | 16.21% | 31.05% | 21.83% | 7.92% | -1.01% |
| Return on equity (ROE) | 23.94% | 28.09% | 18.28% | 3.24% | -13.03% |
Certainly, here's a breakdown of Tesla Inc's profitability ratios based on the provided data:
1. Operating Return on Assets (Operating ROA): This ratio measures the profitability of the company's core operations in relation to its total assets. Tesla's Operating ROA has fluctuated over the past five years, with a significant decrease from 2022 to 2023, indicating a dip in operational efficiency.
2. Return on Assets (ROA): ROA indicates the company's overall ability to generate profit from its assets. Tesla's ROA has shown a mixed trend, with a notable decrease in 2020 followed by a substantial increase in 2021, reflecting varying levels of profitability relative to its assets.
3. Return on Total Capital: This ratio evaluates the return generated from all of the company's capital, including debt and equity. Tesla's Return on Total Capital has displayed notable volatility, with a substantial decrease in 2023 compared to 2022, suggesting a potential shift in capital utilization or profitability.
4. Return on Equity (ROE): ROE signifies the return generated for each dollar of shareholder equity. Tesla's ROE portrays a fluctuating pattern, reaching a peak in 2022 before decreasing in 2023. The 2019 figure indicates a negative ROE, reflecting a loss in equity value.
Overall, the profitability ratios highlight Tesla's performance in generating returns from its assets, capital, and equity over the past five years, illustrating periods of growth, volatility, and potential operational challenges.