Goodwill and Intangible Asset Disclosure
Adjustments to Financial Statements: Removal of Goodwill
Adjusted Financial Ratios: Removal of Goodwill (Summary)
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

First Solar Inc., balance sheet: goodwill and intangible assets

US$ in thousands

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Goodwill	14,462)	14,462)	14,462)	14,462)	14,462)
Developed technology	97,347)	99,964)	99,964)	97,964)	97,714)
Power purchase agreements	—)	6,486)	6,486)	6,486)	6,486)
Patents	8,970)	8,480)	8,173)	7,780)	7,408)
Intangible assets, gross amount	106,317)	114,930)	114,623)	112,230)	111,608)
Accumulated amortization	(75,211)	(69,421)	(58,485)	(47,687)	(37,446)
Intangible assets, net	31,106)	45,509)	56,138)	64,543)	74,162)
Goodwill and intangible assets	45,568)	59,971)	70,600)	79,005)	88,624)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

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Item	Description	The company
Goodwill	Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.
Intangible assets, net	Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	First Solar Inc. intangible assets, net decreased from 2020 to 2021 and from 2021 to 2022.
Goodwill and intangible assets	Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	First Solar Inc. goodwill and intangible assets decreased from 2020 to 2021 and from 2021 to 2022.

First Solar Inc., adjustments to financial statements

US$ in thousands

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Adjustment to Total Assets
Total assets (as reported)	8,251,228)	7,413,746)	7,108,931)	7,515,689)	7,121,362)
Less: Goodwill	14,462)	14,462)	14,462)	14,462)	14,462)
Total assets (adjusted)	8,236,766)	7,399,284)	7,094,469)	7,501,227)	7,106,900)
Adjustment to Stockholders’ Equity
Stockholders’ equity (as reported)	5,836,055)	5,959,551)	5,520,928)	5,096,767)	5,212,403)
Less: Goodwill	14,462)	14,462)	14,462)	14,462)	14,462)
Stockholders’ equity (adjusted)	5,821,593)	5,945,089)	5,506,466)	5,082,305)	5,197,941)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

First Solar Inc., Financial Data: Reported vs. Adjusted

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First Solar Inc., adjusted financial ratios

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Total Asset Turnover
Reported total asset turnover	0.32	0.39	0.38	0.41	0.32
Adjusted total asset turnover	0.32	0.40	0.38	0.41	0.32
Financial Leverage
Reported financial leverage	1.41	1.24	1.29	1.47	1.37
Adjusted financial leverage	1.41	1.24	1.29	1.48	1.37
Return on Equity (ROE)
Reported ROE	-0.76%	7.86%	7.22%	-2.26%	2.77%
Adjusted ROE	-0.76%	7.88%	7.23%	-2.26%	2.78%
Return on Assets (ROA)
Reported ROA	-0.54%	6.32%	5.60%	-1.53%	2.03%
Adjusted ROA	-0.54%	6.33%	5.62%	-1.53%	2.03%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

Financial ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	First Solar Inc. adjusted total asset turnover ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	First Solar Inc. adjusted financial leverage ratio decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level.
Adjusted ROE	A profitability ratio calculated as net income divided by adjusted shareholders’ equity.	First Solar Inc. adjusted ROE improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	First Solar Inc. adjusted ROA improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.

First Solar Inc., Financial Ratios: Reported vs. Adjusted

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	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in thousands)
Net sales	2,619,319)	2,923,377)	2,711,332)	3,063,117)	2,244,044)
Total assets	8,251,228)	7,413,746)	7,108,931)	7,515,689)	7,121,362)
Activity Ratio
Total asset turnover¹	0.32	0.39	0.38	0.41	0.32
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Net sales	2,619,319)	2,923,377)	2,711,332)	3,063,117)	2,244,044)
Adjusted total assets	8,236,766)	7,399,284)	7,094,469)	7,501,227)	7,106,900)
Activity Ratio
Adjusted total asset turnover²	0.32	0.40	0.38	0.41	0.32

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

¹ Total asset turnover = Net sales ÷ Total assets
= 2,619,319 ÷ 8,251,228 = 0.32

² Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 2,619,319 ÷ 8,236,766 = 0.32

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	First Solar Inc. adjusted total asset turnover ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in thousands)
Total assets	8,251,228)	7,413,746)	7,108,931)	7,515,689)	7,121,362)
Stockholders’ equity	5,836,055)	5,959,551)	5,520,928)	5,096,767)	5,212,403)
Solvency Ratio
Financial leverage¹	1.41	1.24	1.29	1.47	1.37
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Adjusted total assets	8,236,766)	7,399,284)	7,094,469)	7,501,227)	7,106,900)
Adjusted stockholders’ equity	5,821,593)	5,945,089)	5,506,466)	5,082,305)	5,197,941)
Solvency Ratio
Adjusted financial leverage²	1.41	1.24	1.29	1.48	1.37

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

¹ Financial leverage = Total assets ÷ Stockholders’ equity
= 8,251,228 ÷ 5,836,055 = 1.41

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 8,236,766 ÷ 5,821,593 = 1.41

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	First Solar Inc. adjusted financial leverage ratio decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level.

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in thousands)
Net income (loss)	(44,166)	468,693)	398,355)	(114,933)	144,326)
Stockholders’ equity	5,836,055)	5,959,551)	5,520,928)	5,096,767)	5,212,403)
Profitability Ratio
ROE¹	-0.76%	7.86%	7.22%	-2.26%	2.77%
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Net income (loss)	(44,166)	468,693)	398,355)	(114,933)	144,326)
Adjusted stockholders’ equity	5,821,593)	5,945,089)	5,506,466)	5,082,305)	5,197,941)
Profitability Ratio
Adjusted ROE²	-0.76%	7.88%	7.23%	-2.26%	2.78%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

¹ ROE = 100 × Net income (loss) ÷ Stockholders’ equity
= 100 × -44,166 ÷ 5,836,055 = -0.76%

² Adjusted ROE = 100 × Net income (loss) ÷ Adjusted stockholders’ equity
= 100 × -44,166 ÷ 5,821,593 = -0.76%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as net income divided by adjusted shareholders’ equity.	First Solar Inc. adjusted ROE improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in thousands)
Net income (loss)	(44,166)	468,693)	398,355)	(114,933)	144,326)
Total assets	8,251,228)	7,413,746)	7,108,931)	7,515,689)	7,121,362)
Profitability Ratio
ROA¹	-0.54%	6.32%	5.60%	-1.53%	2.03%
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Net income (loss)	(44,166)	468,693)	398,355)	(114,933)	144,326)
Adjusted total assets	8,236,766)	7,399,284)	7,094,469)	7,501,227)	7,106,900)
Profitability Ratio
Adjusted ROA²	-0.54%	6.33%	5.62%	-1.53%	2.03%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

¹ ROA = 100 × Net income (loss) ÷ Total assets
= 100 × -44,166 ÷ 8,251,228 = -0.54%

² Adjusted ROA = 100 × Net income (loss) ÷ Adjusted total assets
= 100 × -44,166 ÷ 8,236,766 = -0.54%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	First Solar Inc. adjusted ROA improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.

First Solar Inc. (NASDAQ:FSLR)

Analysis of Goodwill and Intangible Assets

Goodwill and Intangible Asset Disclosure

Adjustments to Financial Statements: Removal of Goodwill

First Solar Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

First Solar Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)