Tesla Inc (TSLA)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 72,913,000 | 62,634,000 | 44,704,000 | 30,189,000 | 22,225,000 |
| ROE | 9.73% | 23.94% | 28.09% | 18.28% | 3.24% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $7,091,000K ÷ $72,913,000K
= 9.73%
Tesla Inc's return on equity (ROE) has shown significant fluctuations over the past five years. In December 2020, the ROE stood at a relatively low 3.24%. However, there was a marked improvement by the end of 2021, with the ROE increasing to 18.28%. This upward trend continued in 2022, reaching 28.09%, indicating enhanced efficiency in generating profit from shareholders' equity.
By the end of 2023, Tesla's ROE dipped slightly to 23.94%, but still remained at a relatively high level compared to previous years. It is noteworthy that in December 2024, the ROE fell to 9.73%, marking a significant decline from the previous year's performance.
Overall, Tesla's ROE has demonstrated volatility, potentially reflecting shifts in the company's profitability and efficiency in utilizing equity. It is essential for stakeholders to closely monitor these fluctuations to assess the company's performance and strategic direction.
Peer comparison
Dec 31, 2024