Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Tesla's annualized net income for the quarter that ended in Mar. 2024 was $4,516 Mil. Tesla's average shareholder tangible equity for the quarter that ended in Mar. 2024 was $62,896 Mil. Therefore, Tesla's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2024 was 7.18%.
The historical rank and industry rank for Tesla's Return-on-Tangible-Equity or its related term are showing as below:
TSLA'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -89.65 Med: -19.73 Max: 34.67
Current: 24.61
During the past 13 years, Tesla's highest Return-on-Tangible-Equity was 34.67%. The lowest was -89.65%. And the median was -19.73%.
TSLA's Return-on-Tangible-Equity is ranked better than 86.44% of 1246
companies
in the Vehicles & Parts industry
Industry Median: 8.415
vs TSLA: 24.61
Tesla Return-on-Tangible-Equity Historical Data
The historical data trend for Tesla's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Tesla's Return-on-Tangible-Equity
For the Auto Manufacturers subindustry, Tesla's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Tesla's Return-on-Tangible-Equity Distribution in the Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Tesla's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Tesla's Return-on-Tangible-Equity falls into.
Tesla Return-on-Tangible-Equity Calculation
Tesla's annualized Return-on-Tangible-Equity for the fiscal year that ended in Dec. 2023 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2024) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
Tesla (NAS:TSLA) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Tesla Return-on-Tangible-Equity Related Terms
Thank you for viewing the detailed overview of Tesla's Return-on-Tangible-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.
Founded in 2003 and based in Palo Alto, California, Tesla is a vertically integrated sustainable energy company that also aims to transition the world to electric mobility by making electric vehicles. The company sells solar panels and solar roofs for energy generation plus batteries for stationary storage for residential and commercial properties including utilities. Tesla has multiple vehicles in its fleet, which include luxury and midsize sedans and crossover SUVs. The company also plans to begin selling more affordable sedans and small SUVs, a light truck, a semi truck, and a sports car. Global deliveries in 2022 were a little over 1.3 million vehicles.
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