Tesla Motors, Inc. (NASDAQ: TSLA) – ROI Snapshot: Tesla
Looking at Q2, You’re here (NASDAQ: TSLA) gained $ 1.31 billion, an increase of 120.88% from the previous quarter. Tesla also recorded a total of $ 11.96 billion in sales, an increase of 15.1% from the first quarter. In the first quarter, Tesla earned $ 594.00 million, and total sales reached $ 10.39 billion.
What is the return on capital employed?
Changes in profits and sales indicate changes in Tesla’s return on capital employed, a measure of annual pre-tax profit relative to the capital employed by a company. Typically, a higher ROCE suggests successful growth of a business and is a sign of higher earnings per share in the future. In the second quarter, Tesla posted a ROCE of 0.05%.
It is important to keep in mind that ROCE measures past performance and is not used as a predictive tool. It’s a good measure of a company’s recent performance, but there are several factors that could affect profits and sales in the near future.
ROCE is an important measure for comparing similar businesses. A relatively high ROCE shows that Tesla is potentially operating at a higher level of efficiency than other companies in its industry. If the company is generating high profits with its current level of capital, some of that money can be reinvested in more capital, which will generally lead to higher returns and growth in earnings per share.
In Tesla’s case, the positive ROCE ratio will be something investors pay attention to before making long-term financial decisions.
Second Quarter Results Snapshot
Tesla reported second-quarter earnings per share of $ 1.45 / share, beating analysts’ expectations of $ 0.96 / share.