Return on Equity (ROE)
since 2006
Calculation
First Solar Inc., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income (loss)1 | ÷ | Stockholders’ equity1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2023 | 12.42% | = | 100 | × | 830,777) | ÷ | 6,687,469) |
| Dec 31, 2022 | -0.76% | = | 100 | × | (44,166) | ÷ | 5,836,055) |
| Dec 31, 2021 | 7.86% | = | 100 | × | 468,693) | ÷ | 5,959,551) |
| Dec 31, 2020 | 7.22% | = | 100 | × | 398,355) | ÷ | 5,520,928) |
| Dec 31, 2019 | -2.26% | = | 100 | × | (114,933) | ÷ | 5,096,767) |
| Dec 31, 2018 | 2.77% | = | 100 | × | 144,326) | ÷ | 5,212,403) |
| Dec 31, 2017 | -3.25% | = | 100 | × | (165,615) | ÷ | 5,098,697) |
| Dec 31, 2016 | -6.87% | = | 100 | × | (357,964) | ÷ | 5,212,687) |
| Dec 31, 2015 | 9.85% | = | 100 | × | 546,421) | ÷ | 5,548,487) |
| Dec 31, 2014 | 7.89% | = | 100 | × | 396,918) | ÷ | 5,027,487) |
| Dec 31, 2013 | 7.84% | = | 100 | × | 353,038) | ÷ | 4,503,117) |
| Dec 31, 2012 | -2.67% | = | 100 | × | (96,338) | ÷ | 3,605,526) |
| Dec 31, 2011 | -1.08% | = | 100 | × | (39,493) | ÷ | 3,643,863) |
| Dec 31, 2010 | 19.22% | = | 100 | × | 664,201) | ÷ | 3,454,945) |
| Dec 26, 2009 | 24.13% | = | 100 | × | 640,138) | ÷ | 2,652,787) |
| Dec 27, 2008 | 23.02% | = | 100 | × | 348,330) | ÷ | 1,513,042) |
| Dec 29, 2007 | 14.43% | = | 100 | × | 158,354) | ÷ | 1,097,267) |
| Dec 30, 2006 | 0.97% | = | 100 | × | 3,974) | ÷ | 411,440) |
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 steady expansion of the equity base. The Return on Equity (ROE) has fluctuated between periods of rapid growth, substantial losses, and moderate recovery, reflecting an inconsistent earnings pattern over the seventeen-year period.
- Initial Expansion Phase (2006–2010)
- A period of rapid escalation in profitability is observed, with ROE rising from 0.97% in 2006 to a peak of 24.13% in 2009. This coincided with a substantial increase in net income, which grew from approximately $3.97 million to over $664 million, while stockholders' equity expanded from $411 million to $3.45 billion.
- Cyclical Volatility and Net Losses (2011–2022)
- The subsequent decade is marked by intermittent periods of negative ROE, indicating cyclical instability. Net losses were recorded in 2011–2012, 2016–2017, 2019, and 2022. The most significant contraction in ROE occurred in 2016, reaching -6.87%. Although profitability returned in 2013–2015, with ROE peaking at 9.85%, and again in 2020–2021, the returns remained well below the peaks seen in the initial expansion phase.
- Stockholders' Equity Growth
- Despite the volatility in net income, stockholders' equity demonstrated a consistent long-term upward trajectory. Equity increased from $411.4 million in 2006 to $6.69 billion by 2023. This steady accumulation suggests a focus on balance sheet strengthening and capital retention, which provided a buffer during the various years of net losses.
- Recent Performance Recovery (2023)
- A strong recovery is evident in the most recent fiscal year. Net income rose to $830.8 million, the highest absolute value in the reported period, resulting in an ROE of 12.42%. This represents a significant rebound from the negative return of -0.76% recorded in 2022, indicating a return to robust profitability.
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Comparison to Competitors
First Solar Inc., ROE, 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 | 12.42% | 1.53% | 9.32% | 41.94% | 58.70% | 1.60% | 116.01% | 54.94% | -1.05% | -13.22% | 19.76% | 33.51% | 38.53% |
| Dec 31, 2022 | -0.76% | 2.41% | 7.54% | 53.51% | 50.62% | 7.90% | 237.04% | 73.35% | -2.68% | 17.41% | 36.65% | 71.81% | 60.02% |
| Dec 31, 2021 | 7.86% | 42.18% | 3.66% | 48.08% | 26.99% | 20.83% | 61.53% | 64.85% | -3.29% | 13.34% | 25.64% | 90.88% | 58.27% |
| Dec 31, 2020 | 7.22% | 42.66% | 10.17% | 34.21% | 12.40% | 25.79% | 45.65% | 43.53% | 18.26% | 6.89% | 22.91% | 85.54% | 60.90% |
| Dec 31, 2019 | -2.26% | 12.06% | 11.64% | 32.94% | 10.92% | 27.16% | 44.21% | 46.89% | -2.45% | 17.59% | 44.33% | 89.35% | 56.33% |
| Dec 31, 2018 | 2.77% | 26.62% | 13.61% | 48.44% | 45.99% | 28.24% | 49.51% | 36.62% | 12.58% | 43.77% | 40.78% | -524.14% | 62.04% |
| Dec 31, 2017 | -3.25% | 7.04% | 7.16% | 36.73% | 8.34% | 13.91% | 69.82% | 24.90% | 0.53% | 27.33% | 28.91% | 8.02% | 35.62% |
| Dec 31, 2016 | -6.87% | -119.47% | 16.68% | 23.85% | -9.20% | 15.58% | 102.22% | 15.51% | -19.60% | -2.28% | 13.74% | 17.95% | 34.33% |
| Dec 31, 2015 | 9.85% | — | 13.74% | 18.09% | 28.94% | 18.70% | 86.88% | 12.85% | 8.46% | 23.57% | 14.27% | 16.78% | 30.02% |
| Dec 31, 2014 | 7.89% | -215.51% | 13.23% | 13.62% | 8.11% | 20.95% | 15.88% | 12.57% | 6.74% | 28.27% | 9.87% | 20.34% | 27.15% |
| Dec 31, 2013 | 7.84% | -15.26% | 14.21% | 3.61% | 19.13% | 16.51% | 15.60% | 2.54% | 6.84% | 13.02% | 11.65% | 18.99% | 20.01% |
| Dec 31, 2012 | -2.67% | -219.89% | 15.63% | 1.51% | 23.27% | 21.49% | 22.80% | 3.29% | 12.27% | -13.40% | 14.02% | 18.22% | 16.05% |
| Dec 31, 2011 | -1.08% | 30.88% | 22.85% | 21.89% | 27.52% | 28.19% | 27.77% | 29.30% | 16.37% | 1.97% | 7.96% | 15.81% | 20.42% |
| Dec 31, 2010 | 19.22% | 46.50% | 22.25% | 12.44% | 27.57% | 23.19% | 9.45% | 19.61% | 8.00% | 23.07% | -2.55% | 15.57% | 30.93% |
| Dec 26, 2009 | 24.13% | 46.91% | 9.80% | -4.30% | -4.23% | 10.48% | -23.96% | -20.79% | 3.85% | -39.43% | -1.25% | 7.84% | 15.12% |
| Dec 27, 2008 | 23.02% | — | 32.49% | 12.73% | — | 13.54% | 12.04% | 24.70% | -3.35% | -26.21% | 30.47% | 17.61% | 20.59% |
| Dec 29, 2007 | 14.43% | -113.01% | 21.25% | 21.87% | — | 16.31% | 14.88% | 58.30% | -0.37% | -4.13% | 22.36% | 20.86% | 26.64% |
| Dec 30, 2006 | 0.97% | -2.87% | 15.99% | 22.80% | — | 13.72% | 10.66% | 24.05% | 10.88% | 5.03% | 20.76% | 18.42% | 38.21% |
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., ROE, long-term trends, comparison to sector (semiconductors & semiconductor equipment)
| First Solar Inc. | Semiconductors & Semiconductor Equipment | |
|---|---|---|
| Dec 31, 2023 | 12.42% | 12.69% |
| Dec 31, 2022 | -0.76% | 21.59% |
| Dec 31, 2021 | 7.86% | 24.91% |
| Dec 31, 2020 | 7.22% | 24.28% |
| Dec 31, 2019 | -2.26% | 25.76% |
| Dec 31, 2018 | 2.77% | 32.95% |
| Dec 31, 2017 | -3.25% | 16.60% |
| Dec 31, 2016 | -6.87% | 12.61% |
| Dec 31, 2015 | 9.85% | 18.69% |
| Dec 31, 2014 | 7.89% | 19.37% |
| Dec 31, 2013 | 7.84% | 15.49% |
| Dec 31, 2012 | -2.67% | 14.85% |
| Dec 31, 2011 | -1.08% | 21.32% |
| Dec 31, 2010 | 19.22% | 20.49% |
| Dec 26, 2009 | 24.13% | 5.22% |
| Dec 27, 2008 | 23.02% | 9.53% |
| Dec 29, 2007 | 14.43% | 13.17% |
| Dec 30, 2006 | 0.97% | 16.33% |
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., ROE, long-term trends, comparison to industry (information technology)
| First Solar Inc. | Information Technology | |
|---|---|---|
| Dec 31, 2023 | 12.42% | 31.26% |
| Dec 31, 2022 | -0.76% | 38.03% |
| Dec 31, 2021 | 7.86% | 41.64% |
| Dec 31, 2020 | 7.22% | 35.38% |
| Dec 31, 2019 | -2.26% | 35.94% |
| Dec 31, 2018 | 2.77% | 30.23% |
| Dec 31, 2017 | -3.25% | 23.19% |
| Dec 31, 2016 | -6.87% | 23.00% |
| Dec 31, 2015 | 9.85% | 25.97% |
| Dec 31, 2014 | 7.89% | 25.43% |
| Dec 31, 2013 | 7.84% | 24.73% |
| Dec 31, 2012 | -2.67% | 26.09% |
| Dec 31, 2011 | -1.08% | 29.03% |
| Dec 31, 2010 | 19.22% | 27.62% |
| Dec 26, 2009 | 24.13% | 20.05% |
| Dec 27, 2008 | 23.02% | 25.24% |
| Dec 29, 2007 | 14.43% | 23.67% |
| Dec 30, 2006 | 0.97% | 22.58% |
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).