Tesla Inc (TSLA)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 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 | -67,000 | -47,000 | 102,000 | -221,711 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Return on total capital | 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% | -1.01% | -0.78% | 1.78% | -4.81% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $10,152,000K ÷ ($—K + $62,634,000K)
= 16.21%
To analyze Tesla Inc's return on total capital, we can review the trend in the return on total capital ratio over the past eight quarters.
The return on total capital measures the ability of a company to generate profits from its total invested capital, including both debt and equity. A higher return on total capital indicates more efficient use of capital to generate earnings.
Looking at the data, we observe a declining trend in Tesla Inc's return on total capital from 25.22% in the fourth quarter of 2022 to 10.46% in the fourth quarter of 2023. This suggests a potential decrease in the company's ability to generate profits relative to its total capital employed.
It's important to note that the return on total capital can be influenced by various factors such as changes in profitability, capital structure, and the allocation and utilization of capital. Therefore, further examination of Tesla Inc's financial and operational performance is necessary to understand the drivers behind the changes in the return on total capital ratio.
Peer comparison
Dec 31, 2023