Tesla Inc (TSLA)

Return on equity (ROE)

		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
Net income (ttm)	US$ in thousands	14,997,000	10,756,000	12,195,000	11,751,000	12,556,000	11,190,000	9,516,000	8,399,000	5,519,000	3,468,000	2,181,000	1,143,000	721,000	556,000	368,000	-144,000	-862,000	-827,000	-659,000	-969,000
Total stockholders’ equity	US$ in thousands	62,634,000	53,466,000	51,130,000	48,054,000	44,704,000	39,851,000	36,376,000	34,085,000	30,189,000	27,053,000	24,804,000	23,017,000	22,225,000	16,031,000	9,855,000	9,173,000	6,618,000	6,040,000	5,715,390	4,605,600
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%

December 31, 2023 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $14,997,000K ÷ $62,634,000K
= 23.94%

To analyze Tesla Inc's return on equity (ROE) over the past eight quarters, we can observe a fluctuating trend. The ROE has ranged from 20.17% to 28.15% during this period. Generally, a higher ROE indicates that a company is generating more profit with less equity, which is favorable for shareholders.

The ROE peaked at 28.15% in the fourth quarter of 2022, but has since exhibited a gradual decline. Although the recent ROE of 23.95% for the fourth quarter of 2023 is lower than the peak, it still reflects a relatively strong performance in generating profits from shareholders' equity.

It is imperative to evaluate the factors contributing to the fluctuation in ROE, such as changes in net income, total equity, and financial leverage. Additionally, comparing Tesla's ROE with industry benchmarks and its historical performance can provide valuable insights into the company's profitability and efficiency in utilizing shareholder equity.