Tesla Inc (TSLA)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 7,076,000 | 10,152,000 | 13,879,000 | 6,589,000 | 1,761,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 72,913,000 | 62,634,000 | 44,704,000 | 30,189,000 | 22,225,000 |
| Return on total capital | 9.70% | 16.21% | 31.05% | 21.83% | 7.92% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $7,076,000K ÷ ($—K + $72,913,000K)
= 9.70%
Tesla Inc's return on total capital has shown a significant improvement over the past few years. As of December 31, 2020, the return on total capital was 7.92%, which increased to 21.83% by December 31, 2021, indicating a notable growth in profitability.
By December 31, 2022, the return on total capital surged to 31.05%, reaching its peak during this period. This suggests that Tesla has been utilizing its capital more effectively to generate profits.
However, there was a slight dip in the return on total capital to 16.21% by December 31, 2023. This might indicate a temporary setback or a change in the company's capital structure or operational efficiency.
By the end of December 31, 2024, the return on total capital decreased further to 9.70%, signifying a decrease in profitability compared to the previous year.
Overall, Tesla Inc's return on total capital has been fluctuating, indicating varying levels of profitability and capital efficiency over the years. It is essential for investors and stakeholders to closely monitor these trends to assess the company's financial performance and sustainability.
Peer comparison
Dec 31, 2024