Stock Analysis on Net

Tesla Inc. (NASDAQ:TSLA)

Analysis of Operating Leases

Microsoft Excel

An operating lease is treated like a rental contract. Neither the leased asset nor the associated liability is reported on the lessee balance sheet, but the rights may be very similar to the rights of an owner. The lessee only records the lease payments as a rental expense in income statement.


Adjustments to Financial Statements for Operating Leases

Tesla Inc., adjustments to financial statements

US$ in millions

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Adjustment to Total Assets
Total assets (as reported) 122,070 106,618 82,338 62,131 52,148
Add: Operating lease right-of-use asset (before adoption of FASB Topic 842)1
Total assets (adjusted) 122,070 106,618 82,338 62,131 52,148
Adjustment to Total Debt
Total debt (as reported) 8,213 5,230 3,099 6,834 11,688
Add: Operating lease liability (before adoption of FASB Topic 842)2
Add: Operating lease liabilities, current portion 807 672 485 368 286
Add: Operating lease liabilities, net of current portion 4,603 3,671 2,164 1,671 1,254
Total debt (adjusted) 13,623 9,573 5,748 8,873 13,228

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

1, 2 Equal to total present value of future operating lease payments.


Tesla Inc., Financial Data: Reported vs. Adjusted


Adjusted Financial Ratios for Operating Leases (Summary)

Tesla Inc., adjusted financial ratios

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Total Asset Turnover1
Reported total asset turnover 0.80 0.91 0.99 0.87 0.60
Adjusted total asset turnover 0.80 0.91 0.99 0.87 0.60
Debt to Equity2
Reported debt to equity 0.11 0.08 0.07 0.23 0.53
Adjusted debt to equity 0.19 0.15 0.13 0.29 0.60
Return on Assets3 (ROA)
Reported ROA 5.81% 14.07% 15.25% 8.88% 1.38%
Adjusted ROA 5.81% 14.07% 15.25% 8.88% 1.38%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Tesla Inc. adjusted total asset turnover ratio deteriorated from 2022 to 2023 and from 2023 to 2024.
Adjusted debt to equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. Tesla Inc. adjusted debt to equity ratio deteriorated from 2022 to 2023 and from 2023 to 2024.
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Tesla Inc. adjusted ROA deteriorated from 2022 to 2023 and from 2023 to 2024.

Tesla Inc., Financial Ratios: Reported vs. Adjusted


Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Revenues 97,690 96,773 81,462 53,823 31,536
Total assets 122,070 106,618 82,338 62,131 52,148
Activity Ratio
Total asset turnover1 0.80 0.91 0.99 0.87 0.60
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Revenues 97,690 96,773 81,462 53,823 31,536
Adjusted total assets 122,070 106,618 82,338 62,131 52,148
Activity Ratio
Adjusted total asset turnover2 0.80 0.91 0.99 0.87 0.60

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

1 Total asset turnover = Revenues ÷ Total assets
= 97,690 ÷ 122,070 = 0.80

2 Adjusted total asset turnover = Revenues ÷ Adjusted total assets
= 97,690 ÷ 122,070 = 0.80

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Tesla Inc. adjusted total asset turnover ratio deteriorated from 2022 to 2023 and from 2023 to 2024.

Adjusted Debt to Equity

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Total debt 8,213 5,230 3,099 6,834 11,688
Stockholders’ equity 72,913 62,634 44,704 30,189 22,225
Solvency Ratio
Debt to equity1 0.11 0.08 0.07 0.23 0.53
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Adjusted total debt 13,623 9,573 5,748 8,873 13,228
Stockholders’ equity 72,913 62,634 44,704 30,189 22,225
Solvency Ratio
Adjusted debt to equity2 0.19 0.15 0.13 0.29 0.60

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

1 Debt to equity = Total debt ÷ Stockholders’ equity
= 8,213 ÷ 72,913 = 0.11

2 Adjusted debt to equity = Adjusted total debt ÷ Stockholders’ equity
= 13,623 ÷ 72,913 = 0.19

Solvency ratio Description The company
Adjusted debt-to-equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. Tesla Inc. adjusted debt-to-equity ratio deteriorated from 2022 to 2023 and from 2023 to 2024.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to common stockholders 7,091 14,997 12,556 5,519 721
Total assets 122,070 106,618 82,338 62,131 52,148
Profitability Ratio
ROA1 5.81% 14.07% 15.25% 8.88% 1.38%
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Net income attributable to common stockholders 7,091 14,997 12,556 5,519 721
Adjusted total assets 122,070 106,618 82,338 62,131 52,148
Profitability Ratio
Adjusted ROA2 5.81% 14.07% 15.25% 8.88% 1.38%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

1 ROA = 100 × Net income attributable to common stockholders ÷ Total assets
= 100 × 7,091 ÷ 122,070 = 5.81%

2 Adjusted ROA = 100 × Net income attributable to common stockholders ÷ Adjusted total assets
= 100 × 7,091 ÷ 122,070 = 5.81%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Tesla Inc. adjusted ROA deteriorated from 2022 to 2023 and from 2023 to 2024.