Tesla Inc (TSLA)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 10,152,000 | 13,879,000 | 6,589,000 | 1,761,000 | -67,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 62,634,000 | 44,704,000 | 30,189,000 | 22,225,000 | 6,618,000 |
| Return on total capital | 16.21% | 31.05% | 21.83% | 7.92% | -1.01% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $10,152,000K ÷ ($—K + $62,634,000K)
= 16.21%
The return on total capital for Tesla Inc has exhibited fluctuations over the past five years. In 2019, the return on total capital was 0.40%, marking a considerable improvement to 5.87% in 2020. Subsequently, the return on total capital increased significantly to 13.59% in 2021, signifying an upward trend. However, there was a noticeable decrease in 2022 to 25.22%, followed by a further decline to 10.46% in 2023. This suggests that the efficiency of utilizing both equity and debt in generating profits experienced fluctuations, warranting a closer examination of the company's capital allocation and operational performance.
Peer comparison
Dec 31, 2023