First Solar Inc. (NASDAQ:FSLR)

Asset Turnover Ratios

The reported total asset turnover showed a slight decline from 0.41 in 2019 to 0.32 in both 2022 and 2023, indicating a decrease in how efficiently assets generated revenue. The adjusted total asset turnover exhibited more variability, initially falling from 0.44 in 2019 to 0.36 in 2020, increasing to 0.43 by 2022, and then slightly declining again to 0.40 in 2023. Overall, adjusted figures suggest some improvement in asset utilization after 2020, though the latest value remains under the initial level.

Liquidity Ratios

Both reported and adjusted current ratios increased substantially from 2019 through 2021, with reported current ratio rising from 2.73 to 4.39 and adjusted from 3.69 to 6.24. However, in subsequent years, these ratios declined somewhat but remained elevated compared to 2019 levels. By 2023, the reported current ratio was 3.55, while the adjusted current ratio increased slightly to 5.23. This trend indicates a relatively strong liquidity position throughout the period, with some moderation after peak levels in 2021.

Debt Ratios

The reported debt to equity ratio decreased from 0.09 in 2019 to a low of 0.03 in 2022 before rising again to 0.09 in 2023, mirroring the trend seen in adjusted debt to equity that moved from 0.11 down to 0.03 in 2022 and up to 0.07 in 2023. Similarly, the debt to capital ratios followed comparable patterns. This indicates that leverage was reduced significantly through 2022 before increasing moderately in the most recent year, suggesting a conservative capital structure was maintained for most of the period with a slight return to higher leverage in 2023.

Financial Leverage

The reported financial leverage ratio declined from 1.47 in 2019 to 1.24 in 2021, increased to 1.41 in 2022, and further to 1.55 in 2023. Adjusted financial leverage decreased steadily from 1.34 in 2019 to 1.16 in 2022 and slightly rose to 1.19 in 2023. This pattern suggests a mixed trend where the company initially reduced leverage, but it began to increase again more noticeably in reported terms than adjusted in the last two years.

Profitability Margins

Reported net profit margin showed significant volatility, starting at a negative margin of -3.75% in 2019, recovering to 16.03% in 2021, dropping again to -1.69% in 2022, and then surging to 25.03% in 2023. Adjusted net profit margin showed a more consistent upward trend, from -2.26% in 2019 to a peak of 39.48% in 2023. This reflects improving profitability, with some discrepancies between reported and adjusted results, but a clear enhancement in underlying earnings over the period.

Returns on Equity and Assets

Both reported and adjusted ROE and ROA exhibited improvements with some fluctuations. Reported ROE improved from -2.26% in 2019 to 12.42% in 2023, with a dip into negative territory in 2022. Adjusted ROE rose steadily from -1.35% in 2019 to 18.85% in 2023. Reported ROA followed a similar pattern: after moving from -1.53% in 2019 to 6.32% in 2021, it dipped below zero in 2022 before increasing to 8.02% in 2023. Adjusted ROA consistently improved over the years, culminating at 15.89% in 2023. These trends indicate stronger profitability and more efficient use of equity and assets in recent years, particularly when considering adjusted figures.

The data reveals several notable trends in the company's financial performance over the five-year period from 2019 to 2023.

Net sales

Net sales exhibited fluctuating patterns, beginning at approximately $3.06 billion in 2019, dipping to around $2.71 billion in 2020, then partially recovering to about $2.92 billion in 2021. A decline followed in 2022, reaching roughly $2.62 billion, before a significant increase to nearly $3.32 billion in 2023, surpassing previous years' levels.

Total assets

Total assets showed a consistent upward trend overall, starting at $7.52 billion in 2019 and experiencing a minor reduction in 2020 to about $7.11 billion. From 2021 onward, assets increased steadily to $7.41 billion in 2021, $8.25 billion in 2022, and a pronounced growth to approximately $10.37 billion by the end of 2023.

Reported total asset turnover

This ratio, which measures sales generated per unit of assets, declined from 0.41 in 2019 to 0.38 in 2020, with a slight recovery to 0.39 in 2021. However, it decreased notably in 2022 to 0.32 and stabilized at 0.32 in 2023, reflecting lower efficiency in utilizing assets for generating sales during the latter years.

Adjusted net sales

Adjusted net sales showed a somewhat different trajectory compared to reported net sales. Starting at $3.28 billion in 2019, it decreased sharply to $2.55 billion in 2020, followed by an increase to nearly $2.99 billion in 2021. A significant rise occurred in 2022 to $3.53 billion, with further growth pushing this figure to about $4.12 billion in 2023, indicating improved sales performance on an adjusted basis.

Adjusted total assets

Adjusted total assets mirrored the trend of reported total assets, beginning at approximately $7.39 billion in 2019 and slightly decreasing to $7.01 billion in 2020. Subsequently, assets increased to $7.36 billion in 2021, then rose substantially to $8.17 billion in 2022 and further to $10.22 billion in 2023, underscoring an expanding asset base.

Adjusted total asset turnover

The adjusted total asset turnover ratio declined from 0.44 in 2019 to 0.36 in 2020 but then improved to 0.41 in 2021 and continued to rise to 0.43 in 2022. It experienced a slight dip to 0.40 in 2023 but overall indicated a better asset utilization relative to the reported turnover, particularly from 2021 to 2023.

In summary, while total assets have generally expanded significantly throughout the period, sales have experienced volatility, with a notable rebound in 2023. The reported total asset turnover ratio decreased over time, implying reduced efficiency in asset usage to generate sales. However, when considering adjusted figures, asset turnover displays improvement particularly after 2020, suggesting underlying operational enhancements. The divergence between reported and adjusted figures highlights the importance of considering adjustments for a comprehensive understanding of performance trends.

The analysis of the annual financial data reveals distinct trends in both asset and liability management over the five-year period.

Current Assets

The current assets exhibited a fluctuating pattern initially, decreasing from 3,599,834 thousand USD in 2019 to 3,014,535 thousand USD in 2020, followed by a modest increase to 3,191,243 thousand USD in 2021. From 2021 onwards, a consistent upward trend is evident, reaching 4,631,809 thousand USD by the end of 2023. This overall increase suggests an enhancement in liquidity and resource availability over the latter years.

Current Liabilities

Current liabilities decreased substantially from 1,318,208 thousand USD in 2019 to 847,398 thousand USD in 2020, with a further decline to 726,878 thousand USD in 2021. However, the liabilities rose again to 1,038,048 thousand USD in 2022 and further to 1,306,158 thousand USD in 2023, indicating rising short-term obligations in the recent years.

Reported Current Ratio

The reported current ratio shows significant improvement from 2.73 in 2019 to a peak of 4.39 in 2021, implying increased liquidity and a stronger ability to cover short-term liabilities with current assets. Thereafter, it declines slightly but remains robust above 3.5 in 2022 and 2023, reflecting sustained healthy liquidity levels despite increasing liabilities.

Adjusted Current Assets and Liabilities

Adjusted current assets closely follow the trend of reported current assets, indicating consistent adjustments with minor variances. Adjusted current liabilities reveal lower values than reported liabilities across the period, suggesting some reclassification or exclusion of certain liabilities in this adjusted measure.

Adjusted Current Ratio

The adjusted current ratio demonstrates an even more pronounced improvement, starting at 3.69 in 2019 and rising sharply to 6.24 in 2021. Although it declines somewhat thereafter, it remains elevated at 5.23 in 2023, indicating an especially strong liquidity position when considering adjustments. This could suggest conservative reporting or adjustments that highlight a stronger financial buffer against short-term obligations.

Overall, the data portrays a company that has improved its liquidity substantially between 2019 and 2021, combining both asset growth and liability reduction. Though liabilities have increased in the latter years, the current ratios, both reported and adjusted, remain at healthy levels, signaling maintained financial stability and capacity to meet short-term debts. The adjustments to asset and liability figures appear to enhance the perception of liquidity strength further, which may reflect internal risk assessments or accounting policies.

The financial data over the five-year period reveals several notable trends concerning the company's debt levels and equity position.

Total Debt

The total debt exhibited a substantial reduction between 2019 and 2022, decreasing from 471,697 thousand US dollars to 184,349 thousand US dollars. However, in 2023, there was a significant increase to 577,420 thousand US dollars, surpassing the initial 2019 level.

Stockholders’ Equity

Stockholders’ equity showed a consistent upward trend throughout the period, growing from 5,096,767 thousand US dollars in 2019 to 6,687,469 thousand US dollars in 2023. Despite minor fluctuations, the overall increase reflects a strengthening equity base.

Reported Debt to Equity Ratio

The reported debt to equity ratio declined steadily from 0.09 in 2019 to a low of 0.03 in 2022, indicating reduced leverage and potentially lower financial risk. This ratio rebounded to 0.09 in 2023, correlating with the surge in total debt during the same year.

Adjusted Total Debt

Adjusted total debt followed a similar downward trajectory from 595,314 thousand US dollars in 2019 to 234,131 thousand US dollars in 2022, before increasing sharply to 624,389 thousand US dollars in 2023. The adjusted figures suggest slightly higher debt levels overall compared to reported debt.

Adjusted Stockholders’ Equity

The adjusted stockholders’ equity increased consistently from 5,498,327 thousand US dollars in 2019 to 8,619,709 thousand US dollars in 2023. This steady rise implies a significant enhancement in the company's net asset base over the years.

Adjusted Debt to Equity Ratio

The adjusted debt to equity ratio declined from 0.11 in 2019 to 0.03 in 2022, indicating reduced leverage under the adjusted metrics. In 2023, this ratio rose to 0.07, reflecting a moderate increase in leverage relative to equity.

Overall, the data reflects a period of deleveraging and equity growth from 2019 through 2022, followed by a pronounced increase in debt in 2023. The equity position strengthened consistently throughout the entire period, enhancing the company’s financial stability, although the recent rise in debt may indicate a shift in financing strategy or capital requirements that will warrant ongoing monitoring.

The analysis of the financial data over the five-year period reveals notable fluctuations in the company's debt levels and capital structure ratios.

Total Debt

Total debt exhibited a downward trend from 2019 through 2022, decreasing significantly from approximately $471.7 million to $184.3 million. However, in 2023, total debt surged notably to $577.4 million, surpassing the 2019 level. This sharp increase in the latest year suggests a change in the company's financing strategy or operational requirements.

Total Capital

Total capital demonstrated a general upward trend over the period, increasing steadily from about $5.57 billion in 2019 to $7.26 billion in 2022, followed by a marked rise in 2023 to approximately $7.26 billion. This growth reflects an expansion in the company's overall financing base, incorporating both debt and equity components.

Reported Debt to Capital Ratio

The reported debt to capital ratio declined consistently from 0.08 in 2019 to a low of 0.03 in 2022, indicating a decreasing proportion of debt financing relative to total capital. In 2023, this ratio rebounded to 0.08, aligning with the increase in total debt observed in the same year. The pattern suggests a period of deleveraging followed by a renewed reliance on debt.

Adjusted Total Debt

Adjusted total debt followed a similar pattern to reported total debt, decreasing from approximately $595.3 million in 2019 to $234.1 million in 2022. In 2023, adjusted total debt rose sharply to about $624.4 million, again indicating increased leverage or additional borrowed funds.

Adjusted Total Capital

Adjusted total capital increased steadily across all years, rising from around $6.09 billion in 2019 to $7.26 billion in 2022, and then sharply to $9.24 billion in 2023. The substantial growth in 2023 suggests significant capital infusion or retained earnings accumulation.

Adjusted Debt to Capital Ratio

This ratio decreased from 0.10 in 2019 to a low of 0.03 in 2022, mirroring the trend in the reported ratio. The ratio increased again to 0.07 in 2023, consistent with the rises in both adjusted debt and capital. The adjusted figures indicate a slightly higher level of leverage compared to reported ratios but reflect the same overall trend.

Overall, the data imply that the company focused on reducing debt levels and strengthening its capital base from 2019 through 2022. However, the reversal in 2023, with sharply increased debt and capital, points to a strategic shift, potentially driven by growth initiatives, acquisitions, or changes in financial policy. The consistency between reported and adjusted values validates the observed trends and indicates effective financial management within those parameters.

Total Assets

Total assets demonstrated a fluctuating trend over the five-year period. After a decline from approximately 7.52 billion US dollars at the end of 2019 to about 7.11 billion in 2020, assets increased steadily, reaching approximately 10.37 billion by the end of 2023. This rise reflects significant growth in asset base in the latter years, especially between 2022 and 2023.

Stockholders’ Equity

Stockholders’ equity showed consistent growth from 5.10 billion US dollars in 2019 to nearly 6.69 billion in 2023, with a minor decline in 2022. Despite this slight drop in 2022, the overall upward trend indicates strengthening equity position, supporting increasing company value and possibly reflecting retained earnings or capital injections.

Reported Financial Leverage

The reported financial leverage ratio decreased from 1.47 in 2019 to a low of 1.24 in 2021, suggesting improved capital structure with lower reliance on debt. However, there was a reversal in this trend as leverage increased again to 1.55 by 2023, exceeding the initial level in 2019. This upward shift implies a higher proportion of debt relative to equity in recent years.

Adjusted Total Assets

Adjusted total assets closely mirror the trend of total assets, declining slightly from around 7.39 billion in 2019 to 7.01 billion in 2020 before recovering and rising to over 10.22 billion in 2023. The adjustment appears to moderate the figures slightly compared to reported totals but confirms the growth trajectory seen in the asset base.

Adjusted Stockholders’ Equity

Adjusted stockholders’ equity consistently increased from approximately 5.50 billion in 2019 to over 8.62 billion in 2023, showing stronger and more stable growth compared to reported equity. This suggests that the adjustments provide a more optimistic view of equity, highlighting an improvement in financial strength and possibly reflecting unrealized gains or other adjustments that enhance equity quality.

Adjusted Financial Leverage

The adjusted financial leverage ratio showed a general decline from 1.34 in 2019 to 1.16 in 2022, indicating a gradual reduction in leverage and a more conservative capital structure. Slightly increased to 1.19 in 2023, the ratio remains well below the reported leverage, supporting a view of relatively moderate debt levels when adjustments are considered.

The financial performance over the analyzed periods shows significant variability in both income and sales metrics. Net income initially exhibited a loss of approximately $115 million at the end of 2019, followed by a recovery to positive figures in 2020 and 2021, with 2021 reaching about $469 million. However, the year 2022 experienced a reversal, returning to a net loss of around $44 million, before rebounding strongly to $831 million in 2023. Net sales fluctuated but showed an overall upward trend, declining from about $3.06 billion in 2019 to a low of approximately $2.62 billion in 2022, then increasing substantially to about $3.32 billion in 2023.

Reported net profit margin

This margin reflected considerable fluctuations, moving from a negative margin of -3.75% in 2019 to significantly positive figures in 2020 and 2021 (14.69% and 16.03%, respectively). In 2022, it returned to a negative value of -1.69%, before climbing sharply to 25.03% in 2023, indicating considerable volatility alongside the income results.

Adjusted net income and sales

Adjusted figures present a somewhat smoother and more optimistic perspective. Adjusted net income turned positive in 2020, moving from a loss of about $74 million in 2019 to steadily increasing gains through 2021 ($534 million), 2022 ($746 million), and 2023 ($1.62 billion). Adjusted net sales showed a generally consistent upward trajectory, starting at $3.28 billion in 2019, dipping in 2020 to $2.55 billion, and then rising steadily to $4.12 billion by 2023.

Adjusted net profit margin

This margin improved notably across the dataset, starting at -2.26% in 2019 and increasing annually to reach 39.48% in 2023. The upward trend in adjusted margin suggests improving operational efficiency or profitability after considering certain adjustments, with the margin nearly doubling from 2021 to 2023.

In summary, the period reviewed shows a recovery and growth trajectory after the initial losses in 2019, with a marked dip in 2022 impacting reported figures. The adjusted results indicate consistent improvement in profitability and sales over time, culminating in strong performance in 2023. The discrepancies between reported and adjusted figures highlight the importance of considering adjustments to fully understand the company's financial health. Overall, despite some fluctuations, the long-term trend points toward strengthened profitability and expanding sales.

The financial results over the five-year period reveal fluctuations and subsequent improvements in profitability and shareholder returns.

Net Income (Loss)

The net income shows significant variability. Starting with a loss of approximately 115 million USD in 2019, the company experienced substantial profits in 2020 and 2021, with net incomes of about 398 million USD and 469 million USD respectively. However, in 2022, the company again reported a loss, albeit smaller, of roughly 44 million USD. By 2023, net income surged to a record high of approximately 831 million USD, indicating strong recovery and profitability.

Stockholders' Equity

Equity figures exhibit a steady upward trend. Beginning at about 5.10 billion USD in 2019, it increased year-over-year to almost 6.69 billion USD by 2023. Despite a slight dip in 2022, the overall trajectory suggests growth in the company's net assets and retained earnings, supporting a solid capital base.

Reported Return on Equity (ROE)

The reported ROE corresponds somewhat to net income patterns. It was negative in 2019 (-2.26%), improved to positive figures above 7% for 2020 and 2021, dipped below zero again in 2022 (-0.76%), and then rebounded notably to 12.42% in 2023. This indicates an overall enhancement in the company's effectiveness in generating profits from shareholder equity, notwithstanding short-term setbacks.

Adjusted Net Income (Loss)

Adjusted net income, which likely excludes certain nonrecurring items, follows a smoother and more optimistic trend compared to reported net income. After an adjusted loss in 2019 (-74 million USD), it turned positive in 2020 with 234 million USD and increased substantially in subsequent years, reaching over 1.62 billion USD by 2023. This consistent upward progression suggests underlying operational improvements and stronger core earnings.

Adjusted Stockholders' Equity

The adjusted equity also shows consistent growth, rising from around 5.50 billion USD in 2019 to nearly 8.62 billion USD in 2023. The steady increase each year points to reinforced financial strength when accounting for adjustments, which could include revaluations or other accounting refinements.

Adjusted Return on Equity (ROE)

Adjusted ROE steadily improves throughout the period, starting from a negative -1.35% in 2019 and progressing each year to reach 18.85% in 2023. This rising trend highlights enhanced profitability relative to adjusted shareholder equity, depicting an increasingly efficient use of capital.

In summary, the data portray a company that has experienced volatility in net income with two loss years offset by strong positive results in other years. The upward trends in equity and particularly in adjusted measures of net income and ROE indicate strengthening financial performance and operational efficiency over time. The adjustments provide a clearer picture of sustained earnings growth and improved shareholder value realization.

Net Income (Loss)

The net income exhibited significant volatility over the analyzed period. An initial loss of approximately $115 million was recorded at the end of 2019, followed by a marked recovery and profitability in 2020 and 2021, with net incomes of about $398 million and $469 million, respectively. However, 2022 saw a return to a net loss of roughly $44 million. The most recent year, 2023, experienced a substantial rebound with net income rising sharply to approximately $831 million.

Total Assets

Total assets increased overall throughout the years. There was a slight decline from about $7.52 billion in 2019 to around $7.11 billion in 2020, followed by a gradual increase each year, reaching over $10.36 billion in 2023. This indicates consistent asset growth especially notable after 2021.

Reported Return on Assets (ROA)

Reported ROA mirrored the net income fluctuations with negative returns in 2019 (-1.53%) and 2022 (-0.54%). Positive returns were achieved in 2020 (5.6%), 2021 (6.32%), and a significant increase in 2023 (8.02%). The pattern reflects periods of profitability interspersed with downturns, aligning with the net income trends.

Adjusted Net Income (Loss)

The adjusted net income showed a consistent upward trajectory over the entire period. Starting with a loss of about $74 million in 2019, it turned positive in 2020 at $233 million and continued to rise significantly each year, reaching approximately $1.62 billion by 2023. This indicates improvements once adjustments are factored, highlighting stronger operational performance.

Adjusted Total Assets

Adjusted total assets closely followed the trend of reported total assets, with a slight decline from 2019 to 2020, followed by steady growth through 2023, ending just above $10.22 billion. This indicates stable asset base expansion when considering adjustments.

Adjusted ROA

Adjusted ROA showed a marked improvement over the years. Starting below zero in 2019 at -1%, it increased to 3.33% in 2020, then ascended steadily to 7.25% in 2021, 9.13% in 2022, and culminating at an impressive 15.89% in 2023. This trend highlights enhanced profitability and efficiency when adjusted metrics are considered.