First Solar Inc. (NASDAQ:FSLR)

Goodwill

The goodwill value remained constant at 14,462 thousand US dollars from 2019 to 2022, followed by a significant increase to 29,687 thousand US dollars in 2023, indicating possible acquisitions or revaluations during the last period.

Developed Technology

Developed technology held relatively stable values throughout the period, with a slight peak in 2020 and 2021 at 99,964 thousand US dollars, and a minor decrease to 97,347 thousand US dollars in 2022, before stabilizing near the previous level at 97,645 thousand US dollars in 2023.

In-Process Research and Development

Data for this item was missing for the initial four years and appears only in 2023 at 43,159 thousand US dollars, suggesting new capitalized expenditures or reclassification in that year.

Power Purchase Agreements

This asset value remained steady at 6,486 thousand US dollars across the first three years and was not recorded in the 2022 and 2023 periods, possibly due to asset disposals or changes in accounting treatment.

Patents

Patent values exhibited consistent growth over the five-year span, rising steadily from 7,780 thousand US dollars in 2019 to 9,438 thousand US dollars in 2023, reflecting ongoing investments in intellectual property.

Intangible Assets, Gross Amount

The gross amount of intangible assets remained fairly constant between 112,230 and 114,930 thousand US dollars through 2019 to 2021, dipped to 106,317 thousand US dollars in 2022, then substantially increased to 150,242 thousand US dollars in 2023, likely driven by additions including in-process research and development.

Accumulated Amortization

Accumulated amortization increased consistently each year in absolute terms, reflecting ongoing amortization charges, moving from -47,687 thousand US dollars in 2019 to -85,731 thousand US dollars in 2023.

Intangible Assets, Net

Net intangible assets declined steadily from 64,543 thousand US dollars in 2019 down to 31,106 thousand US dollars in 2022, correlating with accumulated amortization exceeding new asset additions. However, an increase back to 64,511 thousand US dollars in 2023 indicates significant new capitalized intangible assets offsetting amortization.

Goodwill and Intangible Assets Combined

Combined goodwill and intangible assets declined over the period 2019 to 2022 from 79,005 to 45,568 thousand US dollars, followed by a sharp rebound to 94,198 thousand US dollars in 2023. This pattern suggests a net asset increase dominated by goodwill increments and new intangible asset capitalization in the final year.

The analysis of the financial data over the five-year period reveals several notable trends in asset size and equity composition both on a reported and goodwill-adjusted basis.

Total Assets

Reported total assets exhibit some fluctuation initially, decreasing from approximately 7.52 billion US dollars at the end of 2019 to about 7.11 billion in 2020, before modestly rising to 7.41 billion in 2021. Starting in 2021, there is a more pronounced upward trend, with assets increasing to over 8.25 billion in 2022 and surging further to more than 10.36 billion by the close of 2023. This trajectory indicates a significant expansion of the asset base in the most recent two years.

The adjusted total assets, which account for goodwill elimination, closely mirror the reported figures but are slightly lower in magnitude. The same initial decline from 2019 to 2020 and subsequent incremental rise through 2021 is seen, followed by a robust increase into 2022 and 2023, peaking just above 10.33 billion. The parallel movements between reported and adjusted assets suggest that goodwill remains a consistent component of total assets throughout the period.

Stockholders’ Equity

Reported stockholders’ equity consistently grows from approximately 5.10 billion at the end of 2019 to nearly 5.52 billion in 2020, then continues to rise to almost 5.96 billion in 2021. There is a slight decline noted in 2022, where equity falls to approximately 5.84 billion, before rebounding strongly to reach about 6.69 billion in 2023. This pattern indicates stable equity growth with a minor interruption in 2022.

The adjusted stockholders’ equity values essentially replicate the reported equity trend, albeit marginally lower, reflecting the impact of goodwill adjustments. The adjusted equity moves from around 5.08 billion in 2019 up to approximately 6.66 billion in 2023, confirming the overall positive trend in equity capital, notwithstanding the brief dip in 2022.

Overall, the data demonstrates an expanding financial position characterized by increasing asset and equity values over the latest years, especially pronounced starting in 2022 through 2023. The close alignment of reported and adjusted figures suggests that goodwill has a steady, but relatively small effect on the total financial metrics throughout the available periods.

The data demonstrates several key financial trends over the five-year period ending December 31, 2023. Both reported and adjusted total asset turnover ratios exhibit a mostly stable but slightly declining trend, decreasing from approximately 0.41 in 2019 to 0.32 by 2022 and holding steady at that level through 2023. This suggests a marginal reduction in how efficiently the company utilizes its assets to generate revenue over time.

Financial Leverage

Financial leverage ratios, both reported and adjusted, decreased from 1.47 in 2019 to a low of 1.24 in 2021, indicating a reduction in the use of debt relative to equity during this period. However, leverage increased again in 2022 and 2023, reaching 1.55 by the end of 2023. This reversal may indicate a strategic shift toward greater leverage in recent years.

Return on Equity (ROE)

The ROE experienced notable fluctuation. Beginning with a negative return of -2.26% in 2019, the company improved to positive ROE figures around 7.2% to 7.9% in 2020 and 2021. This was followed by a downturn into negative territory in 2022 at -0.76%, before sharply rising to 12.42% in 2023. The adjusted ROE follows an almost identical pattern, indicating that goodwill adjustments have minimal impact on this profitability metric.

Return on Assets (ROA)

ROA echoed the ROE trends, with negative performance in 2019 (-1.53%) improving steadily to above 6% in 2021. After declining to -0.54% in 2022, ROA recovered to 8.02% in 2023. Adjusted ROA values closely match the reported ones, again showing minimal influence from goodwill adjustments.

Overall, the data highlights stability in asset turnover but reveals volatility in profitability and leverage. The dip in returns in 2022 paired with increased leverage in 2023 may reflect operational challenges followed by strategic financial adjustments leading to improved profitability in the latest year. The negligible differences between reported and goodwill-adjusted figures suggest that intangible asset adjustments have limited effect on the company’s key efficiency and profitability ratios.

The analysis of the annual financial data reveals several notable trends in the company's asset base and efficiency indicators over the five-year period.

Total Assets

There is a general upward trend in both the reported and adjusted total assets from 2019 through 2023. Reported total assets increased from approximately 7.52 billion US dollars in 2019 to about 10.37 billion US dollars in 2023. Similarly, adjusted total assets, which exclude goodwill effects, followed this pattern, rising from around 7.50 billion US dollars to approximately 10.33 billion US dollars over the same timeframe. This growth indicates a consistent expansion of the asset base, especially notable in the later years where the incremental increase is more pronounced.

Total Asset Turnover

The total asset turnover ratios have shown a declining pattern over the period under review. Both reported and adjusted ratios began at 0.41 in 2019 and decreased to 0.32 by 2023. While the values for adjusted and reported turnover are nearly identical, a slight increase was observed in 2021 for the adjusted turnover (0.40) compared to 0.39 reported. The decline in asset turnover suggests a reduction in asset use efficiency, indicating that the company's sales or revenue generated per dollar of assets has diminished. This decrease aligns with the substantial growth in assets, suggesting that asset expansion may not have been matched by proportional increases in sales or revenue generation.

Overall, the company has significantly increased its asset base over the five-year period, but this has been accompanied by a decline in the efficiency of asset utilization as measured by asset turnover ratios. The closeness of reported and adjusted figures implies that goodwill accounting entries have minimal impact on these key financial metrics.

The analysis of the financial data over the five-year period reveals several noteworthy trends in the company's asset base, equity position, and financial leverage.

Total Assets

Both reported and adjusted total assets show a general upward trajectory from 2019 to 2023. Reported total assets increased from approximately $7.52 billion in 2019 to about $10.37 billion in 2023, with a slight dip in 2020, followed by steady growth in the subsequent years. Adjusted total assets mirror this trend closely, indicating that adjustments for goodwill do not significantly alter the asset size perception.

Stockholders’ Equity

Stockholders’ equity, reported and adjusted, also exhibits a rising trend overall. It grew from around $5.10 billion in 2019 to approximately $6.69 billion in 2023. However, equity experienced a marginal decline in 2022 compared to 2021, decreasing from roughly $5.96 billion to $5.84 billion. This slight contraction suggests potential impacts on retained earnings or other equity components in that year before rebounding strongly in 2023. The closeness of adjusted equity values to reported ones implies limited influence from goodwill adjustments on this component.

Financial Leverage

Financial leverage, measured as a ratio, decreased from 1.47 in 2019 to a trough of 1.24 in 2021, indicating a reduction in the proportion of total assets financed by liabilities relative to equity during this period. Subsequently, leverage increased to 1.55 in 2023, exceeding the initial 2019 level, signifying a rise in reliance on external financing or higher debt levels relative to equity. The equality of reported and adjusted leverage ratios suggests that goodwill adjustments had negligible impact on the leverage calculations.

In summary, the company demonstrated growth in asset size and equity capital over the analyzed period with temporary fluctuations, particularly a slight dip in equity and a leverage ratio trough around 2021. The increasing leverage towards the end of the period indicates a strategic shift or external financing growth, which may warrant further examination for implications on risk and capital structure.

The reported and adjusted stockholders’ equity of the company demonstrate a generally positive growth trend over the five-year period. Starting at approximately 5.1 billion US dollars in 2019, the stockholders’ equity increased steadily each year, reaching around 6.7 billion US dollars by the end of 2023. This gradual rise suggests an overall strengthening of the company’s equity base. The adjusted stockholders’ equity figures closely mirror the reported values, with only minor differences, indicating limited impact from goodwill adjustments on the equity values.

Regarding return on equity (ROE), both reported and adjusted figures follow an almost identical pattern, signifying that goodwill adjustments do not materially affect profitability metrics. ROE experienced significant fluctuations throughout the period. Starting with a negative return of -2.26% in 2019, the company improved markedly in 2020 and 2021, achieving positive returns above 7%. However, in 2022, ROE declined sharply, turning negative again at approximately -0.76%. This reversal suggests challenges in profitability during that year. By 2023, ROE rebounded strongly, reaching approximately 12.4%, which is the highest return within the observed timeframe. The sharp improvement in 2023 hints at a recovery or effective strategic implementation leading to enhanced profitability.

Overall, the equity base shows a consistent upward trajectory, while profitability as measured by ROE has been more volatile, with a substantial dip in 2022 followed by a strong recovery in 2023. The close alignment of reported and adjusted measures indicates that the adjustment for goodwill does not significantly alter the assessment of the company’s financial position or performance during this period.

The analysis of the financial data over the five-year period reveals several noteworthy trends and fluctuations in both reported and goodwill adjusted figures.

Total Assets

The reported total assets demonstrate a general upward trajectory from 7,515,689 thousand US dollars in 2019 to 10,365,132 thousand US dollars in 2023. A slight decline is observed in 2020, where assets decreased to 7,108,931 thousand US dollars, followed by a recovery and steady growth in subsequent years. The adjusted total assets, which account for goodwill adjustments, closely mirror the reported figures, showing consistent alignment with minimal variance each year. This indicates that goodwill adjustments have a negligible impact on the asset base over the period analyzed.

Return on Assets (ROA)

The reported ROA displays significant volatility throughout the timeframe. In 2019, the company experienced a negative return of -1.53%, which reversed to a positive 5.6% in 2020 and further improved to 6.32% in 2021. However, 2022 saw a downturn, with ROA declining to -0.54%, before rebounding strongly to 8.02% in 2023. The adjusted ROA values are almost identical to the reported ROA figures, suggesting that the impact of goodwill on profitability metrics is negligible. This pattern of fluctuation indicates potential variability in operational efficiency or market conditions affecting profitability year over year.

Overall, the asset base has expanded significantly over the five years, reflecting growth or acquisition activities, while the ROA exhibits a cyclical pattern with notable recoveries after downturns. The minimal differences between reported and adjusted data imply that goodwill has limited influence on the company’s asset valuation and profitability measures during this period.