Stock Analysis on Net
Stock Analysis on Net

First Solar Inc. (NASDAQ:FSLR)

This company has been moved to the archive! The financial data has not been updated since April 27, 2023.

Analysis of Income Taxes

Microsoft Excel

Income Tax Expense (Benefit)

First Solar Inc., income tax expense (benefit), continuing operations

US$ in thousands

Microsoft Excel
12 months ended: Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Federal 8,434 9,531 (149,162) 9,961 (44,267)
State 399 3,469 4,027 3,890 (13,568)
Foreign 49,984 10,109 26,303 41,080 8,788
Current expense (benefit) 58,817 23,109 (118,832) 54,931 (49,047)
Federal (13,928) 58,510 12,681 (55,647) 31,530
State (700) 3,775 7,591 (6,737) 2,387
Foreign 8,575 18,075 (8,734) 1,973 18,571
Deferred expense (benefit) (6,053) 80,360 11,538 (60,411) 52,488
Income tax expense (benefit) 52,764 103,469 (107,294) (5,480) 3,441

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).

Item Description The company
Current expense (benefit) Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations. First Solar Inc. current expense (benefit) increased from 2020 to 2021 and from 2021 to 2022.
Deferred expense (benefit) Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations. First Solar Inc. deferred expense (benefit) increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.
Income tax expense (benefit) Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. First Solar Inc. income tax expense (benefit) increased from 2020 to 2021 but then slightly decreased from 2021 to 2022.

Effective Income Tax Rate (EITR)

First Solar Inc., effective income tax rate (EITR) reconciliation

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
U.S. statutory federal corporate income tax rate 21.00% 21.00% 21.00% 21.00% 21.00%
Effect of tax holiday 318.90% -5.70% -3.90% 22.40% -23.20%
Changes in valuation allowance 258.60% 0.50% -10.80% 4.80% 16.80%
Non-deductible expenses 125.30% 0.70% 1.30% -9.30% 4.10%
Change in tax contingency 50.30% 0.40% -20.10% -5.90% -5.50%
Foreign dividend income 33.20% 0.50% 1.00% -5.60% 14.60%
Effect of CARES Act 13.10% 0.30% -30.60% 0.00% 0.00%
State tax, net of federal benefit 8.10% 0.80% 3.80% 3.40% -6.70%
Share-based compensation -11.80% -0.50% -0.20% 1.30% -1.90%
Return to provision adjustments -20.50% -0.90% 0.80% -12.00% -22.30%
Foreign tax rate differential -49.10% 0.80% 2.10% -14.30% 12.50%
Tax credits -147.20% -0.60% -2.80% 1.70% -7.50%
Other 13.80% 0.80% 1.80% -2.90% 1.10%
Effective income tax rate 613.70% 18.10% -36.60% 4.60% 3.00%

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).

Item Description The company
Effective income tax rate Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. First Solar Inc. effective income tax rate increased from 2020 to 2021 and from 2021 to 2022.

Components of Deferred Tax Assets and Liabilities

First Solar Inc., components of deferred tax assets and liabilities

US$ in thousands

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Net operating losses 122,950 110,979 110,753 165,669 108,149
Tax credits 103,260 86,885 134,328 13,127 —
Capitalized research and development 32,932 — — — —
Accrued expenses 28,226 35,193 39,458 134,791 55,754
Long-term contracts 23,531 9,065 10,813 11,215 4,967
Compensation 13,167 10,551 15,806 22,401 18,564
Equity in earnings 4,172 4,174 3,666 2,906 2,693
Deferred expenses 1,735 1,786 1,844 2,177 2,165
Inventory 1,490 10,057 4,587 4,020 4,079
Restricted marketable securities and derivatives 357 — — — —
Goodwill and intangible assets 221 1,784 3,065 5,557 9,223
Property, plant and equipment — — — — 18,796
Capitalized interest — — — — 2,948
Other 23,249 24,244 30,091 20,143 17,373
Deferred tax assets, gross 355,290 294,718 354,411 382,006 244,711
Valuation allowance (135,763) (123,917) (127,711) (151,705) (159,546)
Deferred tax assets, net of valuation allowance 219,527 170,801 226,700 230,301 85,165
Property, plant and equipment (150,477) (106,361) (103,324) (77,794) —
Investment in foreign subsidiaries (5,689) (15,583) (21,917) (5,554) (4,425)
Acquisition accounting/basis difference (4,065) (4,065) (5,079) (5,356) (5,420)
Capitalized interest (1,331) (1,338) (3,097) (2,199) —
Restricted marketable securities and derivatives — (4,337) (6,326) (4,330) (7,586)
Other (8,214) (7,654) (6,529) (10,790) (3,093)
Deferred tax liabilities (169,776) (139,338) (146,272) (106,023) (20,524)
Net deferred tax assets (liabilities) 49,751 31,463 80,428 124,278 64,641

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).

Item Description The company
Deferred tax assets, gross Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. First Solar Inc. deferred tax assets, gross decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level.
Deferred tax assets, net of valuation allowance Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. First Solar Inc. deferred tax assets, net of valuation allowance decreased from 2020 to 2021 but then increased from 2021 to 2022 not reaching 2020 level.
Net deferred tax assets (liabilities) Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting. First Solar Inc. net deferred tax assets (liabilities) decreased from 2020 to 2021 but then slightly increased from 2021 to 2022.

Deferred Tax Assets and Liabilities, Classification

First Solar Inc., deferred tax assets and liabilities, classification

US$ in thousands

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Deferred tax assets, net 78,680 59,162 104,099 130,771 77,682
Deferred tax liabilities, net 28,929 27,699 23,671 6,493 13,041

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).

Item Description The company
Deferred tax assets, net Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent. First Solar Inc. deferred tax assets, net decreased from 2020 to 2021 but then slightly increased from 2021 to 2022.
Deferred tax liabilities, net Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent. First Solar Inc. deferred tax liabilities, net increased from 2020 to 2021 and from 2021 to 2022.

Adjustments to Financial Statements: Removal of Deferred Taxes

First Solar Inc., adjustments to financial statements

US$ in thousands

Microsoft Excel
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: Noncurrent deferred tax assets, net 78,680 59,162 104,099 130,771 77,682
Total assets (adjusted) 8,172,548 7,354,584 7,004,832 7,384,918 7,043,680
Adjustment to Total Liabilities
Total liabilities (as reported) 2,415,173 1,454,195 1,588,003 2,418,922 1,908,959
Less: Noncurrent deferred tax liabilities, net 28,929 27,699 23,671 6,493 13,041
Total liabilities (adjusted) 2,386,244 1,426,496 1,564,332 2,412,429 1,895,918
Adjustment to Stockholders’ Equity
Stockholders’ equity (as reported) 5,836,055 5,959,551 5,520,928 5,096,767 5,212,403
Less: Net deferred tax assets (liabilities) 49,751 31,463 80,428 124,278 64,641
Stockholders’ equity (adjusted) 5,786,304 5,928,088 5,440,500 4,972,489 5,147,762
Adjustment to Net Income (loss)
Net income (loss) (as reported) (44,166) 468,693 398,355 (114,933) 144,326
Add: Deferred income tax expense (benefit) (6,053) 80,360 11,538 (60,411) 52,488
Net income (loss) (adjusted) (50,219) 549,053 409,893 (175,344) 196,814

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

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

First Solar Inc., adjusted financial ratios

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Net Profit Margin
Reported net profit margin -1.69% 16.03% 14.69% -3.75% 6.43%
Adjusted net profit margin -1.92% 18.78% 15.12% -5.72% 8.77%
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 0.39 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 1.49 1.37
Return on Equity (ROE)
Reported ROE -0.76% 7.86% 7.22% -2.26% 2.77%
Adjusted ROE -0.87% 9.26% 7.53% -3.53% 3.82%
Return on Assets (ROA)
Reported ROA -0.54% 6.32% 5.60% -1.53% 2.03%
Adjusted ROA -0.61% 7.47% 5.85% -2.37% 2.79%

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 net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. First Solar Inc. adjusted net profit margin ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.
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 adjusted 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 adjusted 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

Adjusted Net Profit Margin

Microsoft Excel
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
Net sales 2,619,319 2,923,377 2,711,332 3,063,117 2,244,044
Profitability Ratio
Net profit margin1 -1.69% 16.03% 14.69% -3.75% 6.43%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income (loss) (50,219) 549,053 409,893 (175,344) 196,814
Net sales 2,619,319 2,923,377 2,711,332 3,063,117 2,244,044
Profitability Ratio
Adjusted net profit margin2 -1.92% 18.78% 15.12% -5.72% 8.77%

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 Net profit margin = 100 × Net income (loss) ÷ Net sales
= 100 × -44,166 ÷ 2,619,319 = -1.69%

2 Adjusted net profit margin = 100 × Adjusted net income (loss) ÷ Net sales
= 100 × -50,219 ÷ 2,619,319 = -1.92%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. First Solar Inc. adjusted net profit margin ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.

Adjusted Total Asset Turnover

Microsoft Excel
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 Deferred Taxes
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 8,172,548 7,354,584 7,004,832 7,384,918 7,043,680
Activity Ratio
Adjusted total asset turnover2 0.32 0.40 0.39 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 ÷ 8,172,548 = 0.32

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.

Adjusted Financial Leverage

Microsoft Excel
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 Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted total assets 8,172,548 7,354,584 7,004,832 7,384,918 7,043,680
Adjusted stockholders’ equity 5,786,304 5,928,088 5,440,500 4,972,489 5,147,762
Solvency Ratio
Adjusted financial leverage2 1.41 1.24 1.29 1.49 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
= 8,172,548 ÷ 5,786,304 = 1.41

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.

Adjusted Return on Equity (ROE)

Microsoft Excel
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 Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income (loss) (50,219) 549,053 409,893 (175,344) 196,814
Adjusted stockholders’ equity 5,786,304 5,928,088 5,440,500 4,972,489 5,147,762
Profitability Ratio
Adjusted ROE2 -0.87% 9.26% 7.53% -3.53% 3.82%

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 × Adjusted net income (loss) ÷ Adjusted stockholders’ equity
= 100 × -50,219 ÷ 5,786,304 = -0.87%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted 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 Return on Assets (ROA)

Microsoft Excel
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 Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income (loss) (50,219) 549,053 409,893 (175,344) 196,814
Adjusted total assets 8,172,548 7,354,584 7,004,832 7,384,918 7,043,680
Profitability Ratio
Adjusted ROA2 -0.61% 7.47% 5.85% -2.37% 2.79%

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 × Adjusted net income (loss) ÷ Adjusted total assets
= 100 × -50,219 ÷ 8,172,548 = -0.61%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted 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.