Tesla Inc (TSLA)

Return on assets (ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	7,091,000	14,997,000	12,556,000	5,519,000	721,000
Total assets	US$ in thousands	122,070,000	106,618,000	82,338,000	62,131,000	52,148,000
ROA		5.81%	14.07%	15.25%	8.88%	1.38%

December 31, 2024 calculation

ROA = Net income ÷ Total assets
= $7,091,000K ÷ $122,070,000K
= 5.81%

Based on the data provided, Tesla Inc's return on assets (ROA) has shown significant fluctuations over the past five years:

1. As of December 31, 2020, Tesla's ROA stood at 1.38%, indicating that for every dollar of assets the company held, it generated a return of 1.38 cents.

2. By December 31, 2021, the ROA increased notably to 8.88%, suggesting an improvement in the company's efficiency in generating profit from its assets.

3. The ROA continued to rise by the end of December 31, 2022, reaching 15.25%, reflecting a substantial increase in profitability relative to the assets deployed.

4. However, there was a slight decrease in the ROA by December 31, 2023, when it declined to 14.07%, indicating a potential decrease in asset efficiency compared to the previous year.

5. Finally, by December 31, 2024, Tesla's ROA further decreased to 5.81%, signaling a significant drop in profitability relative to its asset base.

Overall, Tesla Inc's ROA has exhibited variability over the years, with periods of both improvement and decline. It is essential for investors and analysts to closely monitor these fluctuations to assess the company's ability to generate profits from its assets effectively.