Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

First Solar Inc., consolidated cash flow statement

US$ in thousands

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income (loss)	830,777)	(44,166)	468,693)	398,355)	(114,933)
Depreciation, amortization and accretion	307,994)	269,724)	259,900)	232,925)	205,475)
Impairments and net losses on disposal of long-lived assets	1,568)	63,338)	22,876)	35,806)	7,577)
Share-based compensation	34,219)	28,656)	20,902)	29,267)	37,429)
Deferred income taxes	(60,813)	(12,799)	49,847)	36,013)	(59,917)
Gain on sales of businesses, net	(6,883)	(253,511)	(147,284)	—)	—)
(Gain) loss on sales of marketable securities and restricted marketable securities	9)	—)	(11,696)	(15,346)	(40,621)
Liabilities assumed by customers for the sale of systems	—)	(145,281)	(85,490)	(136,745)	(88,050)
Gain on debt forgiveness	—)	(30,201)	—)	—)	—)
Other, net	22,053)	(1,029)	(3,484)	19,297)	1,962)
Accounts receivable, trade and unbilled	(304,183)	118,724)	(96,951)	345,150)	(73,594)
Inventories	(205,106)	16,693)	(136,365)	(145,396)	(83,528)
Project assets and PV solar power systems	8,626)	(14,336)	23,402)	106,867)	(20,773)
Government grants receivable	(659,745)	—)	—)	—)	—)
Other assets	(224,333)	(72,602)	(69,942)	(33,065)	(5,800)
Income tax receivable and payable	8,656)	43,592)	(13,062)	(177,431)	8,035)
Accounts payable and accrued expenses	79,328)	5,569)	48,968)	(109,583)	—)
Deferred revenue	783,207)	912,946)	47,062)	(157,284)	—)
Other liabilities	(13,114)	(11,948)	(139,817)	(391,710)	400,939)
Changes in operating assets and liabilities	(526,664)	998,638)	(336,705)	(562,452)	225,279)
Adjustments to reconcile net income (loss) to cash provided by operating activities	(228,517)	917,535)	(231,134)	(361,235)	289,134)
Net cash provided by operating activities	602,260)	873,369)	237,559)	37,120)	174,201)
Purchases of property, plant and equipment	(1,386,775)	(903,605)	(540,291)	(416,635)	(668,717)
Purchases of marketable securities and restricted marketable securities	(3,612,801)	(3,375,008)	(2,147,136)	(901,924)	(1,177,336)
Proceeds from sales and maturities of marketable securities and restricted marketable securities	4,563,890)	2,646,787)	2,294,595)	1,192,832)	1,486,631)
Proceeds from sales of businesses, net of cash and restricted cash sold	7,680)	442,302)	300,499)	—)	—)
Acquisitions, net of cash acquired	(35,739)	—)	—)	—)	—)
Other investing activities	(9,046)	(3,050)	(6,707)	(5,500)	(2,876)
Net cash used in investing activities	(472,791)	(1,192,574)	(99,040)	(131,227)	(362,298)
Proceeds from borrowings under debt arrangements, net of issuance costs	367,983)	397,380)	129,215)	156,679)	120,132)
Repayment of debt	—)	(75,896)	(72,676)	(225,344)	(30,099)
Payments of tax withholdings for restricted shares	(31,130)	(12,092)	(15,989)	(13,118)	(16,089)
Other financing activities	—)	—)	—)	(804)	999)
Net cash provided by (used in) financing activities	336,853)	309,392)	40,550)	(82,587)	74,943)
Effect of exchange rate changes on cash, cash equivalents, restricted cash, and restricted cash equivalents	5,285)	47,438)	3,174)	3,778)	(2,959)
Net increase (decrease) in cash, cash equivalents, restricted cash, and restricted cash equivalents	471,607)	37,625)	182,243)	(172,916)	(116,113)
Cash, cash equivalents, restricted cash, and restricted cash equivalents, beginning of the period	1,493,462)	1,455,837)	1,273,594)	1,446,510)	1,562,623)
Cash, cash equivalents, restricted cash, and restricted cash equivalents, end of the period	1,965,069)	1,493,462)	1,455,837)	1,273,594)	1,446,510)

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 Income (Loss): The net income exhibited significant volatility over the analyzed periods. Starting with a net loss in 2019 of approximately $115 million, the company reversed to a positive net income reaching nearly $398 million in 2020 and further increased to about $469 million in 2021. However, in 2022, the company incurred a net loss of around $44 million before recovering strongly to a record net income of approximately $831 million in 2023.
Depreciation, Amortization and Accretion: These non-cash expenses generally increased steadily from $205 million in 2019 to just over $308 million in 2023, reflecting ongoing capital investment and asset base expansion or aging.
Impairments and Net Losses on Disposal of Long-lived Assets: This item peaked in 2022 at about $63 million, which might have contributed negatively to earnings that year, after fluctuations in prior years. It declined significantly to $1.57 million in 2023.
Share-based Compensation: Share-based compensation costs decreased from $37 million in 2019 to a low of $21 million in 2021 but increased again to over $34 million by 2023.
Deferred Income Taxes: Deferred tax balances fluctuated widely, being negative in 2019, turning positive through 2020 and 2021, but then returning to significant negative values in 2022 and 2023, likely reflecting changes in tax positions or timing differences.
Gain on Sales of Businesses, Net: There were substantial gains from sales of businesses in 2021 and 2022, approximately $147 million and $254 million respectively, followed by a smaller gain in 2023.
Gain/(Loss) on Sales of Marketable Securities: Modest gains were recorded in earlier years, with a negligible amount in 2023, indicating limited impact from these transactions over time.
Changes in Operating Assets and Liabilities: The company experienced significant swings, with a large negative impact in 2020 (-$562 million) and 2023 (-$527 million), but a positive contribution in 2022 (almost $999 million), indicating fluctuating working capital movements affecting cash flows.
Net Cash Provided by Operating Activities: The net cash from operations showed a generally positive trend, growing from $174 million in 2019 to a peak of $873 million in 2022, before declining to $602 million in 2023, yet remaining strong overall.
Purchases of Property, Plant, and Equipment: Capital expenditures increased notably each year, escalating from $669 million in 2019 to $1.38 billion in 2023, highlighting ongoing significant investments in fixed assets.
Marketable Securities Transactions: The company heavily invested in marketable securities, with purchases growing from $1.18 billion in 2019 to $3.61 billion in 2023. Proceeds from sales and maturities also increased sharply, especially in 2023 reaching $4.56 billion, suggesting active portfolio management or liquidity needs.
Proceeds from Sales of Businesses and Acquisitions: Significant cash inflows were realized from sales of businesses in 2021 and 2022, totalling more than $742 million combined, while acquisitions in 2023 involved a net cash outflow of approximately $36 million.
Net Cash Used in Investing Activities: Investing cash outflows were substantial, peaking at $1.19 billion in 2022, which aligns with high capital expenditures and marketable securities activity. The outflow decreased notably to $473 million in 2023, partly due to increased proceeds from securities and business sales.
Financing Activities: Net cash flows from financing showed volatility, with negative activity in 2020 (-$83 million) and positive inflows in other years, notably a $336 million inflow in 2023. Debt borrowings increased over time, reflecting financing needs for operational or investing activities. Debt repayments decreased after a peak in 2020, with none reported in 2023.
Cash and Cash Equivalents: Cash and equivalents declined in 2019 and 2020 but rebounded with positive net increases in the following years, culminating in an ending cash balance of nearly $2 billion in 2023, the highest in the analyzed period.
Overall Financial Trends and Insights: The financial data portrays a company undergoing dynamic changes with expansions in capital investment and active management of marketable securities and business operations. Profitability has been volatile but reached record highs in the most recent year. Strong operating cash flows and increased liquidity positions indicate improved financial strength despite substantial investing outlays. The large fluctuations in working capital and deferred taxes suggest complexities in operational and tax management. The company’s strategic sales of businesses and acquisitions reflect an ongoing portfolio optimization.

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First Solar Inc. (NASDAQ:FSLR)

Cash Flow Statement