Tesla Inc (TSLA)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 7,871,000 | 8,525,000 | 7,866,000 | 8,963,000 | 10,152,000 | 11,911,000 | 13,503,000 | 12,957,000 | 13,879,000 | 12,567,000 | 10,884,000 | 9,708,000 | 6,589,000 | 4,504,000 | 3,217,000 | 2,180,000 | 1,761,000 | 1,479,000 | 1,153,000 | 641,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 72,913,000 | 69,931,000 | 66,468,000 | 64,378,000 | 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 |
| Return on total capital | 10.80% | 12.19% | 11.83% | 13.92% | 16.21% | 22.28% | 26.41% | 26.96% | 31.05% | 31.53% | 29.92% | 28.48% | 21.83% | 16.65% | 12.97% | 9.47% | 7.92% | 9.23% | 11.70% | 6.99% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $7,871,000K ÷ ($—K + $72,913,000K)
= 10.80%
Tesla Inc's return on total capital has shown fluctuations over the past few years. Starting at 6.99% in March 2020, the return increased to 31.53% by September 2022, showcasing a significant improvement in capital efficiency. Subsequently, the return slightly declined to 16.21% by December 2023 and further decreased to 10.80% by December 2024.
The trend indicates that Tesla has been able to generate solid returns on its total capital, reaching a peak of 31.53% in September 2022. However, the subsequent decline in returns suggests potential challenges in maintaining the same level of efficiency. It would be essential for Tesla to evaluate its capital allocation strategies and operational performance to sustain or improve its return on total capital in the future.
Peer comparison
Dec 31, 2024