Tesla Inc (TSLA)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 8,891,000 | 13,656,000 | 6,523,000 | 1,994,000 | -69,000 |
| Total assets | US$ in thousands | 106,618,000 | 82,338,000 | 62,131,000 | 52,148,000 | 34,309,000 |
| Operating ROA | 8.34% | 16.59% | 10.50% | 3.82% | -0.20% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $8,891,000K ÷ $106,618,000K
= 8.34%
To analyze Tesla Inc's operating return on assets (operating ROA) over the past five years, we can observe a fluctuating trend. The operating ROA was 6.66% as of December 31, 2023, compared to 14.64% in 2022, 8.10% in 2021, 3.82% in 2020, and 0.23% in 2019.
The notable increase in operating ROA from 2019 to 2020 indicates an improvement in the company's ability to generate operating income from its assets. This improvement continued in 2021, demonstrating sustained operational efficiency. However, in 2022, the operating ROA significantly declined, and although it increased in 2023, it remained below the 2022 level.
It is important to closely examine the factors contributing to the fluctuation in operating ROA, such as changes in operating income and asset utilization efficiency. Overall, the analysis suggests that Tesla Inc has experienced varying levels of operational performance in relation to its asset base over the past five years. Further investigation into the drivers of these fluctuations would provide insight into the company's operational efficiency and effectiveness in generating return from its assets.
Peer comparison
Dec 31, 2023