Tesla Inc (TSLA)

Operating return on assets (Operating ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Operating income	US$ in thousands	7,076,000	8,891,000	13,656,000	6,523,000	1,994,000
Total assets	US$ in thousands	122,070,000	106,618,000	82,338,000	62,131,000	52,148,000
Operating ROA		5.80%	8.34%	16.59%	10.50%	3.82%

December 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $7,076,000K ÷ $122,070,000K
= 5.80%

Based on the data provided, Tesla Inc's operating return on assets (operating ROA) has shown a fluctuating trend over the years. In December 31, 2020, the operating ROA was at 3.82%, indicating that for each dollar of assets, the company generated 3.82 cents in operating income.

By December 31, 2021, Tesla had significantly improved its operating ROA to 10.50%, reflecting a more efficient utilization of its assets to generate operating income. This suggests that Tesla was able to increase its profitability relative to its asset base.

In the following year, by December 31, 2022, Tesla's operating ROA further improved to 16.59%, showcasing a substantial enhancement in the company's operating efficiency and profitability. This could indicate that Tesla was effectively managing its operations to generate higher returns on its assets.

However, by December 31, 2023, Tesla's operating ROA declined to 8.34%, signifying a decrease in its operating efficiency in generating income from its assets compared to the previous year. This could be due to various factors such as changes in market conditions or operational challenges.

By December 31, 2024, Tesla's operating ROA dropped further to 5.80%, indicating a continued decline in the company's efficiency in utilizing its assets to generate operating income. It would be important for Tesla to closely monitor this trend and identify areas for improvement to enhance its operational performance.

Overall, the analysis of Tesla Inc's operating return on assets suggests that while the company has shown fluctuations in its operating efficiency over the years, there have been periods of significant improvements as well as declines. Monitoring and analyzing this ratio can help stakeholders assess the company's operational performance and profitability relative to its asset base.