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Tesla ROA %

: 11.46% (As of Sep. 2021)
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ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Tesla's annualized Net Income for the quarter that ended in Sep. 2021 was $6,472 Mil. Tesla's average Total Assets over the quarter that ended in Sep. 2021 was $56,490 Mil. Therefore, Tesla's annualized ROA % for the quarter that ended in Sep. 2021 was 11.46%.

The historical rank and industry rank for Tesla's ROA % or its related term are showing as below:

NAS:TSLA' s ROA % Range Over the Past 10 Years
Min: -46.28   Med: -5.76   Max: 6.57
Current: 6.57

-46.28
6.57

During the past 13 years, Tesla's highest ROA % was 6.57%. The lowest was -46.28%. And the median was -5.76%.

NAS:TSLA's ROA % is ranked higher than
74% of the 1190 Companies
in the Vehicles & Parts industry.

( Industry Median: 3.59 vs. NAS:TSLA: 6.57 )

Tesla ROA % Historical Data

The historical data trend for Tesla's ROA % 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.

* Premium members only.

Tesla Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
ROA %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -4.39 -7.65 -3.34 -2.72 1.60

Tesla Quarterly Data
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
ROA % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.86 2.21 3.33 8.45 11.46

Competitive Comparison

For the Auto Manufacturers subindustry, Tesla's ROA %, along with its competitors' market caps and ROA % 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 ROA % Distribution

For the Vehicles & Parts industry and Consumer Cyclical sector, Tesla's ROA % distribution charts can be found below:

* The bar in red indicates where Tesla's ROA % falls into.



Tesla ROA % Calculation

Tesla's annualized ROA % for the fiscal year that ended in Dec. 2020 is calculated as:

ROA %=Net Income (A: Dec. 2020 )/( (Total Assets (A: Dec. 2019 )+Total Assets (A: Dec. 2020 ))/ count )
=690/( (34309+52148)/ 2 )
=690/43228.5
=1.60 %

Tesla's annualized ROA % for the quarter that ended in Sep. 2021 is calculated as:

ROA %=Net Income (Q: Sep. 2021 )/( (Total Assets (Q: Jun. 2021 )+Total Assets (Q: Sep. 2021 ))/ count )
=6472/( (55146+57834)/ 2 )
=6472/56490
=11.46 %

* 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 ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data, the Net Income data used here is four times the quarterly (Sep. 2021) net income data. ROA % is displayed in the 30-year financial page.


Tesla  (NAS:TSLA) ROA % Explanation

ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A bank’s ROA % is typically well under 2%.

Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:

ROA %(Q: Sep. 2021 )
=Net Income/Total Assets
=6472/56490
=(Net Income / Revenue)*(Revenue / Total Assets)
=(6472 / 55028)*(55028 / 56490)
=Net Margin %*Asset Turnover
=11.76 %*0.9741
=11.46 %

Note: The Net Income data used here is four times the quarterly (Sep. 2021) net income data. The Revenue data used here is four times the quarterly (Sep. 2021) revenue data.

* 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.


Be Aware

Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).

Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.

E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.


Tesla ROA % Related Terms

Thank you for viewing the detailed overview of Tesla's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.


Tesla Business Description

Tesla logo
Industry
Consumer Cyclical » Vehicles & Parts NAICS : 336211 SIC : 3711
Address
3500 Deer Creek Road, Palo Alto, CA, USA, 94304
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 mid-size sedans and crossover SUVs. The company also plans to begin selling more affordable sedans and small SUVs, a light-truck, semi-truck, and a sports car. Global deliveries in 2020 were roughly 500,000 units.
Executives
Baglino Andrew D officer: SVP Powertrain and Energy Eng. 3500 DEER CREEK ROAD FREMONT CA 94538
Kirkhorn Zachary officer: Chief Financial Officer 3500 DEER CREEK ROAD PALO ALTO CA 94304
Guillen Jerome M officer: President, Automotive 3500 DEER CREEK RD. PALO ALTO CA 94304
Taneja Vaibhav officer: Chief Accounting Officer 3500 DEER CREEK ROAD PALO ALTO CA 94304
Wilson-thompson Kathleen director PO BOX 3599 BATTLE CREEK MI 49016-3599
Musk Kimbal director C/O TESLA MOTORS, INC. 3500 DEER CREEK ROAD PALO ALTO CA 94304
Denholm Robyn M director 4150 NETWORK CIRCLE SANTA CLARA CA 95054
Mizuno Hiromichi director 1-2-33-A504, KOMAZAWA SETAGAYA TOKYO M0 154-0012
Gracias Antonio J. director C/O VALOR EQUITY PARTNERS 200 SOUTH MICHIGAN AVENUE, SUITE 1020 CHICAGO IL 60604
Musk Elon director, 10 percent owner, officer: CEO C/O TESLA MOTORS, INC. 3500 DEER CREEK ROAD PALO ALTO CA 94304
Ellison Lawrence Joseph director C/O DELPHI ASSET MGMT CORPORATION 5525 KIETZKE LANE, SUITE 200 RENO NV 89511
Jurvetson Stephen T director 2882 SAND HILL ROAD, SUITE 150 MENLO PARK CA 94025
Straubel Jeffrey B officer: Chief Technical Officer C/O TESLA MOTORS, INC. 3500 DEER CREEK ROAD PALO ALTO CA 94304
Ehrenpreis Ira Matthew director 100 SHORELINE HWY SUITE 282, BLDG. B MILL VALLEY CA 94941
Buss Brad W director 198 CHAMPION COURT SAN JOSE CA 95134

Tesla Headlines

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