Name: First Solar Inc. (NASDAQ:FSLR) | Income Statement
Creator: Stock Analysis on Net

Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

Download chart

First Solar Inc., consolidated income statement

US$ in thousands

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net sales	3,318,602)	2,619,319)	2,923,377)	2,711,332)	3,063,117)
Cost of sales	(2,017,923)	(2,549,461)	(2,193,423)	(2,030,659)	(2,513,905)
Gross profit	1,300,679)	69,858)	729,954)	680,673)	549,212)
Selling, general and administrative	(197,622)	(164,724)	(170,320)	(222,918)	(205,471)
Research and development	(152,307)	(112,804)	(99,115)	(93,738)	(96,611)
Production start-up	(64,777)	(73,077)	(21,052)	(40,528)	(45,915)
Litigation loss	(35,590)	—)	—)	(6,000)	(363,000)
Operating expenses	(450,296)	(350,605)	(290,487)	(363,184)	(710,997)
Gain on sales of businesses, net	6,883)	253,511)	147,284)	—)	—)
Operating income (loss)	857,266)	(27,236)	586,751)	317,489)	(161,785)
Foreign currency income (loss), net	(21,533)	(16,414)	(7,975)	(4,890)	2,291)
Interest income	97,667)	33,284)	6,179)	16,559)	48,886)
Interest expense, net	(12,965)	(12,225)	(13,107)	(24,036)	(27,066)
Other income (expense), net	(29,145)	31,189)	314)	(11,932)	17,545)
Income (loss) before taxes and equity in earnings (losses)	891,290)	8,598)	572,162)	293,190)	(120,129)
Income tax (expense) benefit	(60,513)	(52,764)	(103,469)	107,294)	5,480)
Equity in losses, net of tax	—)	—)	—)	(2,129)	(284)
Net income (loss)	830,777)	(44,166)	468,693)	398,355)	(114,933)

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).

The financial performance from 2019 to 2023 is characterized by significant volatility in profitability and a sharp recovery in the final year. While net sales remained relatively stable between 2019 and 2022, fluctuating between 2.6 billion and 3.1 billion USD, a substantial increase to 3.3 billion USD was recorded in 2023.

Gross Profitability and Cost Management: Gross profit exhibited extreme variance over the five-year period. After a period of growth between 2019 and 2021, reaching 730 million USD, gross profit collapsed to 70 million USD in 2022. This decline coincided with a rise in the cost of sales to 2.55 billion USD, the highest level since 2019. However, 2023 saw a dramatic reversal, with gross profit surging to 1.3 billion USD, driven by a simultaneous increase in net sales and a reduction in cost of sales to 2.02 billion USD.
Operating Expense Trends: Selling, general and administrative expenses remained relatively stable, fluctuating within a narrow range between 165 million and 223 million USD. In contrast, research and development spending showed a consistent upward trajectory, increasing from 97 million USD in 2019 to 152 million USD in 2023, indicating a sustained commitment to technological investment. Production start-up costs peaked in 2022 at 73 million USD before moderating slightly in 2023.
Impact of Non-Recurring Items: Operating results were heavily influenced by non-recurring events. A significant litigation loss of 363 million USD in 2019 contributed to an operating loss that year. Subsequent years showed minimal litigation impact until 2023, which recorded a loss of 36 million USD. Additionally, gains on the sale of businesses provided a meaningful boost to operating income in 2021 and 2022, specifically 147 million and 254 million USD respectively.
Net Income and Bottom-Line Performance: Net income mirrored the volatility of operating income. The company transitioned from a net loss of 115 million USD in 2019 to strong profits in 2020 and 2021. A return to a net loss of 44 million USD occurred in 2022, primarily due to the compression of gross margins. The period concluded with a peak net income of 831 million USD in 2023, supported by record gross profits and a substantial increase in interest income to 98 million USD.

AI Ask an analyst for more

My previous chats

Add tokens

Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.

How can I help you?