Tesla Inc (TSLA)
Profitability ratios
Return on sales
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 18.25% | 19.81% | 21.49% | 23.13% | 25.60% | 26.61% | 27.10% | 27.10% | 25.28% | 23.11% | 22.04% | 21.18% | 21.02% | 21.14% | 19.77% | 18.20% | 16.56% | 16.88% | 17.86% | 18.38% |
| Operating profit margin | 9.19% | 11.18% | 13.46% | 14.78% | 16.76% | 16.52% | 15.91% | 15.33% | 12.12% | 9.57% | 7.86% | 6.41% | 6.32% | 6.31% | 4.78% | 2.83% | -0.28% | -0.06% | 0.57% | -1.39% |
| Pretax margin | 10.33% | 12.28% | 14.21% | 14.88% | 16.80% | 16.48% | 15.75% | 15.07% | 11.55% | 8.45% | 6.29% | 4.18% | 3.21% | 2.86% | 1.79% | -0.21% | -3.06% | -3.02% | -2.32% | -3.95% |
| Net profit margin | 15.50% | 11.21% | 12.97% | 13.66% | 15.41% | 14.95% | 14.17% | 13.51% | 10.25% | 7.40% | 5.21% | 3.18% | 2.29% | 1.97% | 1.43% | -0.55% | -3.51% | -3.39% | -2.64% | -4.29% |
Based on the profitability ratios of Tesla Inc, the gross profit margin, which indicates the percentage of revenue remaining after deducting the cost of goods sold, has seen a consistent decline over the past eight quarters, falling from 24.49% in March 2022 to 16.71% in December 2023. This trend suggests that the company's ability to generate profits from its core operational activities has weakened.
Similarly, the operating profit margin, which reflects the percentage of revenue remaining after deducting operating expenses, has also experienced a decreasing trend, dropping from 12.43% in March 2022 to 7.48% in December 2023. This indicates a reduction in the company's efficiency in managing its operating expenses to generate profits.
The pretax margin, representing the percentage of profit a company earns from its total revenue before taxes, displays a downward trend, declining from 16.42% in March 2022 to 10.50% in December 2023. This suggests a gradual decrease in the company's profitability before considering tax implications.
Furthermore, the net profit margin, which reflects the proportion of revenue that translates into net income, has shown inconsistency but generally declining, with fluctuations from 14.00% in March 2022 to 15.79% in December 2022, and then a noticeable drop to 11.46% in September 2023 and subsequent recovery to 15.79% in December 2023. This erratic pattern indicates volatility in Tesla's bottom-line profitability.
Overall, the profitability ratios point to a diminishing trend in Tesla Inc's ability to generate profits from its operational activities, implying potential challenges in cost management and revenue generation.
Return on investment
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 8.34% | 11.42% | 13.97% | 14.65% | 16.59% | 16.62% | 15.59% | 14.43% | 10.50% | 7.75% | 5.97% | 4.35% | 3.82% | 3.89% | 3.23% | 1.98% | -0.20% | -0.04% | 0.44% | -1.08% |
| Return on assets (ROA) | 14.07% | 11.45% | 13.46% | 13.53% | 15.25% | 15.04% | 13.89% | 12.72% | 8.88% | 6.00% | 3.95% | 2.16% | 1.38% | 1.22% | 0.96% | -0.39% | -2.51% | -2.52% | -2.07% | -3.35% |
| Return on total capital | 16.21% | 22.28% | 26.41% | 26.96% | 31.05% | 31.53% | 29.92% | 28.48% | 21.83% | 16.65% | 12.97% | 9.47% | 7.92% | 9.23% | 11.70% | 6.99% | -1.01% | -0.78% | 1.78% | -4.81% |
| Return on equity (ROE) | 23.94% | 20.12% | 23.85% | 24.45% | 28.09% | 28.08% | 26.16% | 24.64% | 18.28% | 12.82% | 8.79% | 4.97% | 3.24% | 3.47% | 3.73% | -1.57% | -13.03% | -13.69% | -11.53% | -21.04% |
Based on the provided data, Tesla Inc's profitability ratios show a fluctuating trend over the past eight quarters. The operating return on assets (Operating ROA) ranged from 6.66% to 14.64%, with a general decreasing trend over the period. This indicates that the company's operating income generated from its assets has been declining.
The return on assets (ROA) also experienced fluctuations, with a range from 11.48% to 15.28%. The trend suggests that the company's overall net income generated from its assets has been inconsistent over the quarters.
The return on total capital exhibited significant variations, ranging from 10.46% to 25.22%. This reflects fluctuations in the company's ability to generate returns from all sources of capital, including debt and equity.
Similarly, the return on equity (ROE) showed variability, fluctuating from 20.17% to 28.15%. This indicates that the company's ability to generate profit from shareholders' equity has been inconsistent.
Overall, the profitability ratios reflect a mixed performance for Tesla Inc in terms of generating returns from its assets, total capital, and equity over the specified period. This analysis suggests that Tesla Inc's profitability has varied, and it would be beneficial to further investigate the factors contributing to these fluctuations in profitability ratios.