First Solar Inc., adjustment to net income (loss)

US$ in thousands

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Net income (loss) (as reported)	(44,166)	468,693)	398,355)	(114,933)	144,326)
Add: Unrealized gain (loss) on marketable securities and restricted marketable securities, net of tax	(56,744)	(24,666)	21,659)	(15,670)	(57,747)
Net income (loss) (adjusted)	(100,910)	444,027)	420,014)	(130,603)	86,579)

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First Solar Inc., adjusted profitability ratios

	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	-3.85%	15.19%	15.49%	-4.26%	3.86%
Return on Equity (ROE)
Reported ROE	-0.76%	7.86%	7.22%	-2.26%	2.77%
Adjusted ROE	-1.73%	7.45%	7.61%	-2.56%	1.66%
Return on Assets (ROA)
Reported ROA	-0.54%	6.32%	5.60%	-1.53%	2.03%
Adjusted ROA	-1.22%	5.99%	5.91%	-1.74%	1.22%

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

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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 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: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in thousands)
Adjusted net income (loss)	(100,910)	444,027)	420,014)	(130,603)	86,579)
Net sales	2,619,319)	2,923,377)	2,711,332)	3,063,117)	2,244,044)
Profitability Ratio
Adjusted net profit margin²	-3.85%	15.19%	15.49%	-4.26%	3.86%

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 × -100,910 ÷ 2,619,319 = -3.85%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	First Solar Inc. adjusted net profit margin ratio deteriorated from 2020 to 2021 and 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)
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: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in thousands)
Adjusted net income (loss)	(100,910)	444,027)	420,014)	(130,603)	86,579)
Stockholders’ equity	5,836,055)	5,959,551)	5,520,928)	5,096,767)	5,212,403)
Profitability Ratio
Adjusted ROE²	-1.73%	7.45%	7.61%	-2.56%	1.66%

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) ÷ Stockholders’ equity
= 100 × -100,910 ÷ 5,836,055 = -1.73%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by shareholders’ equity.	First Solar Inc. adjusted ROE deteriorated from 2020 to 2021 and 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: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in thousands)
Adjusted net income (loss)	(100,910)	444,027)	420,014)	(130,603)	86,579)
Total assets	8,251,228)	7,413,746)	7,108,931)	7,515,689)	7,121,362)
Profitability Ratio
Adjusted ROA²	-1.22%	5.99%	5.91%	-1.74%	1.22%

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) ÷ Total assets
= 100 × -100,910 ÷ 8,251,228 = -1.22%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by 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)

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