Stock Analysis on Net
Stock Analysis on Net

First Solar Inc. (NASDAQ:FSLR)

$22.49

This company has been moved to the archive! The financial data has not been updated since October 29, 2024.

Common-Size Income Statement

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First Solar Inc., common-size consolidated income statement

Microsoft Excel
12 months ended: Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Net sales
Cost of sales
Gross profit
Selling, general and administrative
Research and development
Production start-up
Litigation loss
Operating expenses
Gain on sales of businesses, net
Operating income (loss)
Foreign currency income (loss), net
Interest income
Interest expense, net
Other income (expense), net
Income (loss) before taxes and equity in earnings (losses)
Income tax (expense) benefit
Equity in losses, net of tax
Net income (loss)

Based on: 10-K (reporting date: 2023-12-31), 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).

Net Sales and Cost of Sales
Net sales remain consistent at 100% across all periods, serving as the baseline for all other percentage-based financial items. The cost of sales shows variability, initially decreasing from -82.07% in 2019 to -74.9% in 2020, then holding relatively steady around -75% in 2021. A sharp increase to -97.33% occurs in 2022, followed by a significant decrease to -60.81% in 2023. This trend indicates fluctuating cost control efficiency with a notable cost spike in 2022.
Gross Profit
Gross profit percentage improves from 17.93% in 2019 to 25.1% in 2020, maintaining a similar level in 2021. It falls dramatically in 2022 to 2.67% in line with the increased cost of sales, then surges to a high of 39.19% in 2023. This pattern closely reflects the inverse movements in cost of sales and demonstrates volatility in profitability at the gross margin level.
Operating Expenses
Selling, general, and administrative (SG&A) expenses fluctuate between -6.71% and -8.22% from 2019 to 2020, then decrease steadily to -5.95% by 2023. Research and development (R&D) expenses gradually increase from -3.15% in 2019 to -4.59% in 2023, reflecting increased investment in innovation or product development. Production start-up costs remain relatively low but exhibit a peak in 2022 (-2.79%) before decreasing to -1.95% in 2023. Litigation losses are significant in 2019 (-11.85%) but sharply decline thereafter, with a minor reappearance in 2023 (-1.07%). Overall operating expenses percentage improve from -23.21% in 2019 to less than -14% by 2023, indicating effort to manage indirect costs except for R&D which increases.
Operating Income and Related Items
Operating income reflects notable variability. It transitions from a loss position (-5.28%) in 2019 to positive figures of 11.71% and 20.07% in 2020 and 2021 respectively, before falling to a small loss (-1.04%) in 2022 and rebounding substantially to 25.83% in 2023. Gains on sales of businesses commence in 2021 with 5.04%, increasing to 9.68% in 2022, then decreasing sharply to 0.21% in 2023. Foreign currency losses remain minor but slightly increase in magnitude over time. Interest income varies, initially declining and then growing to 2.94% in 2023, whereas interest expenses show a mild decreasing trend. Other income and expenses exhibit inconsistency with a notable positive spike in 2022 (1.19%) and a negative figure in 2023 (-0.88%). Taken together, these items contribute to fluctuations in pre-tax income.
Income Before Taxes and Net Income
Income before taxes aligns closely with operating income trends, showing a rise from a loss in 2019 (-3.92%) to strong positive results in 2020 and 2021 (10.81% and 19.57%), marginal profit in 2022 (0.33%), and a peak in 2023 (26.86%). Income tax expense/benefit percentages fluctuate, shifting from a minor benefit (0.18%) in 2019 to more substantial tax benefits in 2020 (3.96%), then shifting to tax expenses in the years 2021 to 2023, indicating variability in tax obligations. Equity in losses is minimal and not consistently reported. Net income follows a similar trajectory to pre-tax income: an initial loss in 2019 (-3.75%) is replaced by strong profitability in 2020 (14.69%) and 2021 (16.03%), a loss in 2022 (-1.69%), and a significant gain of 25.03% in 2023.
Overall Summary
The data illustrate a generally improving profitability profile with notable fluctuations, particularly in 2022 where there is a sharp increase in cost of sales and corresponding drops in gross profit, operating income, and net income. The recovery in 2023 is marked by significant gains in gross profit and net income percentages. Cost management outside of R&D shows improvement, while investment in R&D steadily increases. Variability in litigation losses and gains on sales of businesses also impact overall profitability. Interest and other income components contribute variably but do not dominate overall trends. The tax position varies greatly across years, influencing net income outcomes. These dynamics suggest operational challenges impacted earnings in 2022, followed by a strong recovery and improved margin structure in 2023.