Return on Assets (ROA)
since 2006
Calculation
First Solar Inc., ROA, long-term trends, calculation
| ROA | = | 100 | × | Net income (loss)1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2023 | 8.02% | = | 100 | × | 830,777) | ÷ | 10,365,132) |
| Dec 31, 2022 | -0.54% | = | 100 | × | (44,166) | ÷ | 8,251,228) |
| Dec 31, 2021 | 6.32% | = | 100 | × | 468,693) | ÷ | 7,413,746) |
| Dec 31, 2020 | 5.60% | = | 100 | × | 398,355) | ÷ | 7,108,931) |
| Dec 31, 2019 | -1.53% | = | 100 | × | (114,933) | ÷ | 7,515,689) |
| Dec 31, 2018 | 2.03% | = | 100 | × | 144,326) | ÷ | 7,121,362) |
| Dec 31, 2017 | -2.41% | = | 100 | × | (165,615) | ÷ | 6,864,501) |
| Dec 31, 2016 | -5.21% | = | 100 | × | (357,964) | ÷ | 6,867,213) |
| Dec 31, 2015 | 7.47% | = | 100 | × | 546,421) | ÷ | 7,316,331) |
| Dec 31, 2014 | 5.90% | = | 100 | × | 396,918) | ÷ | 6,724,439) |
| Dec 31, 2013 | 5.13% | = | 100 | × | 353,038) | ÷ | 6,883,502) |
| Dec 31, 2012 | -1.52% | = | 100 | × | (96,338) | ÷ | 6,348,692) |
| Dec 31, 2011 | -0.68% | = | 100 | × | (39,493) | ÷ | 5,777,614) |
| Dec 31, 2010 | 15.16% | = | 100 | × | 664,201) | ÷ | 4,380,403) |
| Dec 26, 2009 | 19.11% | = | 100 | × | 640,138) | ÷ | 3,349,512) |
| Dec 27, 2008 | 16.47% | = | 100 | × | 348,330) | ÷ | 2,114,502) |
| Dec 29, 2007 | 11.55% | = | 100 | × | 158,354) | ÷ | 1,371,312) |
| Dec 30, 2006 | 0.69% | = | 100 | × | 3,974) | ÷ | 578,510) |
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), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-26), 10-K (reporting date: 2008-12-27), 10-K (reporting date: 2007-12-29), 10-K (reporting date: 2006-12-30).
1 US$ in thousands
The financial performance from 2006 to 2023 is characterized by significant volatility in profitability and a consistent expansion of the asset base. The return on assets (ROA) exhibits a cyclical pattern, alternating between periods of high efficiency, sharp contractions into negative territory, and subsequent recoveries.
- Initial Expansion and Peak Efficiency (2006–2010)
- A period of rapid scaling is observed, with total assets growing from approximately 578 million to 4.38 billion. Net income increased exponentially during this timeframe, leading to a peak ROA of 19.11% in 2009. This phase represents the highest level of asset utilization efficiency in the analyzed period.
- First Period of Contraction (2011–2012)
- A reversal in profitability occurred between 2011 and 2012, as net income transitioned to losses of 39.5 million and 96.3 million respectively. Consequently, the ROA turned negative, reaching -1.52% by 2012, despite the continued growth of total assets to 6.35 billion.
- Recovery and Mid-Term Volatility (2013–2019)
- A recovery phase from 2013 to 2015 saw ROA climb back to 7.47%. However, this was followed by another period of instability. Significant net losses in 2016 and 2017 drove ROA down to -5.21% and -2.41%. While a brief return to profitability occurred in 2018, another loss in 2019 resulted in an ROA of -1.53%, indicating inconsistent earnings relative to a stabilizing asset base of approximately 7.5 billion.
- Recent Performance and Asset Scaling (2020–2023)
- The most recent period shows a renewed upward trend in profitability, with a notable peak in 2023. Net income reached its historical high of 830.8 million in 2023, coinciding with a significant increase in total assets to 10.37 billion. Despite a brief dip into negative ROA in 2022 (-0.54%), the period concluded with a recovery to an ROA of 8.02%.
Over the full duration of the analysis, the asset base expanded by approximately 1,688%, while net income remained highly erratic. The divergence between the steady growth of total assets and the fluctuating nature of net income underscores a high sensitivity of the return on assets to market volatility and operational shifts.
AI Ask an analyst for more
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?
Comparison to Competitors
First Solar Inc., ROA, long-term trends, comparison to competitors
| First Solar Inc. | Advanced Micro Devices Inc. | Analog Devices Inc. | Applied Materials Inc. | Broadcom Inc. | Intel Corp. | KLA Corp. | Lam Research Corp. | Marvell Technology Inc. | Micron Technology Inc. | NVIDIA Corp. | Qualcomm Inc. | Texas Instruments Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Dec 31, 2023 | 8.02% | 1.26% | 6.79% | 22.31% | 19.33% | 0.88% | 24.07% | 24.02% | -0.73% | -9.08% | 10.61% | 14.17% | 20.12% |
| Dec 31, 2022 | -0.54% | 1.95% | 5.46% | 24.41% | 15.69% | 4.40% | 26.37% | 26.78% | -1.90% | 13.11% | 22.07% | 26.39% | 32.16% |
| Dec 31, 2021 | 6.32% | 25.46% | 2.66% | 22.80% | 8.91% | 11.80% | 20.23% | 24.59% | -2.58% | 9.96% | 15.05% | 21.93% | 31.48% |
| Dec 31, 2020 | 5.60% | 27.78% | 5.69% | 16.19% | 3.90% | 13.65% | 13.11% | 15.47% | 14.23% | 5.01% | 16.15% | 14.60% | 28.91% |
| Dec 31, 2019 | -1.53% | 5.66% | 6.37% | 14.22% | 4.04% | 15.42% | 13.05% | 18.26% | -1.79% | 12.91% | 31.15% | 13.31% | 27.84% |
| Dec 31, 2018 | 2.03% | 7.40% | 7.31% | 18.64% | 24.46% | 16.45% | 14.28% | 19.08% | 11.06% | 32.59% | 27.11% | -14.88% | 32.56% |
| Dec 31, 2017 | -2.41% | 1.21% | 3.44% | 17.68% | 3.11% | 7.79% | 16.74% | 14.00% | 0.45% | 14.40% | 16.93% | 3.77% | 20.87% |
| Dec 31, 2016 | -5.21% | -14.97% | 10.81% | 11.80% | -3.48% | 9.10% | 14.20% | 7.45% | -14.91% | -1.00% | 8.33% | 10.90% | 21.88% |
| Dec 31, 2015 | 7.47% | -21.23% | 9.87% | 9.00% | 12.88% | 11.08% | 7.59% | 7.00% | 7.40% | 12.01% | 8.76% | 10.38% | 18.40% |
| Dec 31, 2014 | 5.90% | -10.70% | 9.17% | 8.14% | 2.51% | 12.73% | 10.52% | 7.91% | 5.78% | 13.53% | 6.07% | 16.40% | 15.92% |
| Dec 31, 2013 | 5.13% | -1.91% | 10.55% | 2.13% | 16.16% | 10.42% | 10.27% | 1.57% | 5.83% | 6.22% | 8.77% | 15.06% | 11.42% |
| Dec 31, 2012 | -1.52% | -29.58% | 11.59% | 0.90% | 19.67% | 13.05% | 14.82% | 2.11% | 10.66% | -7.20% | 10.46% | 14.20% | 8.79% |
| Dec 31, 2011 | -0.68% | 9.91% | 16.44% | 13.90% | 22.57% | 18.20% | 16.99% | 17.84% | 14.26% | 1.13% | 5.63% | 11.70% | 10.91% |
| Dec 31, 2010 | 15.16% | 9.49% | 16.45% | 8.57% | 19.24% | 18.14% | 5.43% | 13.94% | 6.84% | 12.59% | -1.90% | 10.62% | 24.09% |
| Dec 26, 2009 | 19.11% | 3.35% | 7.28% | -3.19% | -2.23% | 8.23% | -14.50% | -15.48% | 3.34% | -16.02% | -0.90% | 5.80% | 12.13% |
| Dec 27, 2008 | 16.47% | -40.36% | 25.44% | 8.73% | — | 10.43% | 7.41% | 15.65% | -2.51% | -12.06% | 21.28% | 12.86% | 16.10% |
| Dec 29, 2007 | 11.55% | -29.26% | 16.72% | 16.05% | — | 12.54% | 11.42% | 32.63% | -0.27% | -2.16% | 16.78% | 17.86% | 20.98% |
| Dec 30, 2006 | 0.69% | -1.26% | 13.78% | 16.00% | — | 10.43% | 8.31% | 14.51% | 9.43% | 3.34% | 15.80% | 16.24% | 31.16% |
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), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-26), 10-K (reporting date: 2008-12-27), 10-K (reporting date: 2007-12-29), 10-K (reporting date: 2006-12-30).
Comparison to Sector (Semiconductors & Semiconductor Equipment)
First Solar Inc., ROA, long-term trends, comparison to sector (semiconductors & semiconductor equipment)
| First Solar Inc. | Semiconductors & Semiconductor Equipment | |
|---|---|---|
| Dec 31, 2023 | 8.02% | 7.13% |
| Dec 31, 2022 | -0.54% | 12.17% |
| Dec 31, 2021 | 6.32% | 13.29% |
| Dec 31, 2020 | 5.60% | 11.86% |
| Dec 31, 2019 | -1.53% | 12.98% |
| Dec 31, 2018 | 2.03% | 17.25% |
| Dec 31, 2017 | -2.41% | 8.34% |
| Dec 31, 2016 | -5.21% | 6.69% |
| Dec 31, 2015 | 7.47% | 10.65% |
| Dec 31, 2014 | 5.90% | 12.05% |
| Dec 31, 2013 | 5.13% | 10.05% |
| Dec 31, 2012 | -1.52% | 9.54% |
| Dec 31, 2011 | -0.68% | 13.83% |
| Dec 31, 2010 | 15.16% | 14.54% |
| Dec 26, 2009 | 19.11% | 3.60% |
| Dec 27, 2008 | 16.47% | 6.42% |
| Dec 29, 2007 | 11.55% | 9.30% |
| Dec 30, 2006 | 0.69% | 12.06% |
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), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-26), 10-K (reporting date: 2008-12-27), 10-K (reporting date: 2007-12-29), 10-K (reporting date: 2006-12-30).
Comparison to Industry (Information Technology)
First Solar Inc., ROA, long-term trends, comparison to industry (information technology)
| First Solar Inc. | Information Technology | |
|---|---|---|
| Dec 31, 2023 | 8.02% | 12.34% |
| Dec 31, 2022 | -0.54% | 14.33% |
| Dec 31, 2021 | 6.32% | 14.52% |
| Dec 31, 2020 | 5.60% | 11.46% |
| Dec 31, 2019 | -1.53% | 11.67% |
| Dec 31, 2018 | 2.03% | 10.94% |
| Dec 31, 2017 | -2.41% | 9.00% |
| Dec 31, 2016 | -5.21% | 9.68% |
| Dec 31, 2015 | 7.47% | 11.51% |
| Dec 31, 2014 | 5.90% | 12.33% |
| Dec 31, 2013 | 5.13% | 13.22% |
| Dec 31, 2012 | -1.52% | 14.06% |
| Dec 31, 2011 | -0.68% | 15.11% |
| Dec 31, 2010 | 15.16% | 14.45% |
| Dec 26, 2009 | 19.11% | 10.04% |
| Dec 27, 2008 | 16.47% | 11.87% |
| Dec 29, 2007 | 11.55% | 11.93% |
| Dec 30, 2006 | 0.69% | 12.20% |
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), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-26), 10-K (reporting date: 2008-12-27), 10-K (reporting date: 2007-12-29), 10-K (reporting date: 2006-12-30).