Statement of Comprehensive Income
Comprehensive income is the change in equity (net assets) of a business enterprise during a period from transactions and other events and circumstances from non-owners sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners.
First Solar Inc., consolidated statement of comprehensive income
US$ in thousands
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 data reveals significant fluctuations in key income and comprehensive income components over the five-year period. The analysis of trends provides insights into the company's financial performance and volatility.
- Net Income (Loss)
- The net income exhibits notable volatility. Initially, there was a substantial loss in 2019 amounting to approximately -114.9 million USD. This was followed by a strong recovery in 2020 and 2021, with net income reaching 398.4 million USD and further increasing to 468.7 million USD respectively. However, in 2022, the company recorded a loss again of about -44.2 million USD, before experiencing a significant turnaround in 2023 with net income surging to 830.8 million USD. This pattern suggests a cyclical performance with large fluctuations year-over-year.
- Foreign Currency Translation Adjustments
- The foreign currency translation adjustments have also been variable but generally negative until 2023. The adjustments were negative each year from 2019 to 2022, ranging from approximately -7.0 million USD to as low as -32.0 million USD in 2022, indicating adverse currency translation impacts during this period. In 2023, this item reversed to a positive figure of 3.1 million USD, signaling an improvement or favorable currency movement.
- Unrealized Gain (Loss) on Marketable Securities and Restricted Marketable Securities, Net of Tax
- This component reflects considerable volatility and swings between gains and losses. After a loss of about -15.7 million USD in 2019, a positive reversal occurred in 2020 with a gain of 21.7 million USD. Subsequently, losses resumed in 2021 and 2022 with -24.7 million USD and -56.7 million USD respectively. In 2023, the figure returned to a positive gain of 10.2 million USD. This reflects a fluctuating market environment affecting securities valuation.
- Unrealized Gain (Loss) on Derivative Instruments, Net of Tax
- Changes in unrealized gains or losses on derivative instruments have been relatively smaller in magnitude when compared to other items but remain inconsistent in direction. The values ranged from losses in 2019, 2020, and 2022 to gains in 2021 and 2023. The largest loss was -6.7 million USD in 2022, contrasting with the positive 4.4 million USD in 2023. This indicates variable exposure and valuation outcomes related to derivative instruments.
- Other Comprehensive Gain (Loss)
- Other comprehensive income components accumulate the above items and similarly show a pattern of swings. The company experienced overall negative other comprehensive losses in 2019, 2021, and more pronouncedly in 2022 (up to -95.5 million USD). Conversely, in 2020 and 2023, there were notable positive gains in other comprehensive income, indicating periods with overall favorable comprehensive factors outside net income. The volatility here is consistent with the fluctuations observed in foreign currency translations and unrealized gains/losses.
- Comprehensive Income (Loss)
- Comprehensive income mirrors the extreme variability seen in net income and other comprehensive items. It swung from a significant loss of approximately -139.8 million USD in 2019 to a very strong positive result of 416.0 million USD in 2020. The company maintained positive comprehensive income in 2021 at 434.1 million USD before returning to a loss of -139.6 million USD in 2022. The most recent year, 2023, shows a remarkable recovery in comprehensive income reaching 848.5 million USD, the highest in the observed period. These trends highlight both high operational performance variability and sensitivity to market and currency factors influencing comprehensive income.