Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Paying user area
Try for free
First Solar Inc. pages available for free this week:
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Geographic Areas
- Enterprise Value to FCFF (EV/FCFF)
- Dividend Discount Model (DDM)
- Selected Financial Data since 2006
- Operating Profit Margin since 2006
- Total Asset Turnover since 2006
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to First Solar Inc. for $22.49.
This is a one-time payment. There is no automatic renewal.
We accept:
Profitability Ratios (Summary)
First Solar Inc., profitability ratios (quarterly data)
Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
The financial ratios presented indicate a dynamic progression in profitability and efficiency metrics over recent quarters.
- Gross Profit Margin
- This margin demonstrates a generally upward trend beginning at 17.93% in the first quarter of 2019, rising to a peak above 27% towards the end of 2021. A significant decline follows, falling as low as 2.67% in the third quarter of 2022. From this low point, the margin recovers strongly, reaching a notable high of 46.54% by the end of the first quarter of 2024. This pattern reflects notable volatility, with a substantial recovery and improvement in recent quarters.
- Operating Profit Margin
- The operating profit margin starts in negative territory at -5.28% in late 2019 but improves consistently over time, turning positive and surpassing 10% by the end of 2020. It reaches a peak of around 21.14% near the end of 2021 before experiencing a dip in 2022, even turning slightly negative in the last quarter of that year. Subsequently, the margin shows a strong rebound, climbing to approximately 34.68% by Q1 2024, evidencing enhanced operational profitability despite interim setbacks.
- Net Profit Margin
- Initially negative at -3.75% near the end of 2019, the net profit margin improves steadily, peaking close to 19% at the end of 2021. Similar to other margins, it declines through 2022, decreasing to near -1.69% by the first quarter of 2023. From this trough, the net margin resumes its upward trajectory, reaching 32.41% in Q1 2024, suggesting strong bottom-line recovery and profitability improvement over the recent period.
- Return on Equity (ROE)
- ROE follows a comparable pattern: starting at a negative value of -2.26% in late 2019, it rises gradually through 2020 and 2021, peaking near 9.73%. A decline occurs through 2022 and early 2023, entering negative briefly at -0.76% before rebounding. By the end of the first quarter of 2024, ROE reaches 16.44%, indicating enhanced equity efficiency and value generation for shareholders in recent quarters.
- Return on Assets (ROA)
- Similarly, ROA begins at -1.53% near the end of 2019 and gradually rises to nearly 7.77% by late 2021. After a decline in 2022 and early 2023, dipping below zero briefly, the ratio recovers to 10.91% by the first quarter of 2024. This reflects improving asset utilization and operational effectiveness over time.
Overall, the data reveal a cyclical pattern with initial growth in profitability and returns through 2021, deteriorating in 2022 with some temporary negative values, followed by a robust recovery across all key performance indicators in 2023 and early 2024. The recent substantial increases in margins and returns suggest effective management actions or favorable market conditions driving improved financial performance.
Return on Sales
Return on Investment
Gross Profit Margin
First Solar Inc., gross profit margin calculation (quarterly data)
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||||
| Gross profit (loss) | ||||||||||||||||||||||||||||||
| Net sales | ||||||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||
| Gross profit margin1 | ||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Gross Profit Margin, Competitors2 | ||||||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | ||||||||||||||||||||||||||||||
| Analog Devices Inc. | ||||||||||||||||||||||||||||||
| Applied Materials Inc. | ||||||||||||||||||||||||||||||
| Broadcom Inc. | ||||||||||||||||||||||||||||||
| Intel Corp. | ||||||||||||||||||||||||||||||
| KLA Corp. | ||||||||||||||||||||||||||||||
| Lam Research Corp. | ||||||||||||||||||||||||||||||
| Micron Technology Inc. | ||||||||||||||||||||||||||||||
| NVIDIA Corp. | ||||||||||||||||||||||||||||||
| Qualcomm Inc. | ||||||||||||||||||||||||||||||
| Texas Instruments Inc. | ||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q3 2024 Calculation
Gross profit margin = 100
× (Gross profit (loss)Q3 2024
+ Gross profit (loss)Q2 2024
+ Gross profit (loss)Q1 2024
+ Gross profit (loss)Q4 2023)
÷ (Net salesQ3 2024
+ Net salesQ2 2024
+ Net salesQ1 2024
+ Net salesQ4 2023)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
- Net Sales
- Net sales demonstrate a fluctuating yet overall increasing trend over the analyzed periods. Starting at 531,978 thousand US dollars in March 2019, sales increased significantly, peaking at 1,398,377 thousand in December 2019. Following a decline into 2020, net sales showed variability with notable recovery reaching 1,158,553 thousand US dollars by December 2023. The sales values for the most recent periods in 2024 show sustained strength, with figures above 790,000 thousand US dollars.
- Gross Profit (Loss)
- Gross profit reveals considerable volatility during the observed quarters. An initial increase from 112 thousand US dollars in early 2019 to 333,555 thousand in December 2019 is followed by fluctuations through 2020 and 2021. Substantial declines occur in early 2022, including a negative gross profit of -23,200 thousand US dollars in June 2022. However, recovery trends are visible post-2022, with gross profit rising significantly to 502,033 thousand US dollars by December 2023 and maintaining robust levels in 2024.
- Gross Profit Margin
- The gross profit margin percentage started recording from December 2019 onward, initially at 17.93%. It generally improved over time with some fluctuations, reaching above 25% in most quarters of 2020 and early 2021. A sharp decline is noticeable through 2022 where margins fell to as low as 2.67% in September. Subsequently, margins improved markedly towards late 2023 and into 2024, attaining highest levels recorded in the dataset at around 46%, indicating effective cost management or favorable pricing dynamics during these recent periods.
- Overall Analysis
- The data indicates periods of strong sales growth accompanied by volatile gross profit results and margins. Significant margin compression in 2022 corresponds with gross profit declines, implying increased cost pressures or pricing difficulties near that time. The strong rebound in profit and margin metrics since late 2022 suggests successful operational adjustments or market conditions improving. The rising gross profit margin exceeding 40% in 2024 signals increasing profitability efficiency relative to sales. The overall pattern reflects resilience after mid-term challenges, with an improving profitability outlook.
Operating Profit Margin
First Solar Inc., operating profit margin calculation (quarterly data)
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||||
| Operating income (loss) | ||||||||||||||||||||||||||||||
| Net sales | ||||||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||
| Operating profit margin1 | ||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Operating Profit Margin, Competitors2 | ||||||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | ||||||||||||||||||||||||||||||
| Analog Devices Inc. | ||||||||||||||||||||||||||||||
| Applied Materials Inc. | ||||||||||||||||||||||||||||||
| Broadcom Inc. | ||||||||||||||||||||||||||||||
| Intel Corp. | ||||||||||||||||||||||||||||||
| KLA Corp. | ||||||||||||||||||||||||||||||
| Lam Research Corp. | ||||||||||||||||||||||||||||||
| Micron Technology Inc. | ||||||||||||||||||||||||||||||
| NVIDIA Corp. | ||||||||||||||||||||||||||||||
| Qualcomm Inc. | ||||||||||||||||||||||||||||||
| Texas Instruments Inc. | ||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q3 2024 Calculation
Operating profit margin = 100
× (Operating income (loss)Q3 2024
+ Operating income (loss)Q2 2024
+ Operating income (loss)Q1 2024
+ Operating income (loss)Q4 2023)
÷ (Net salesQ3 2024
+ Net salesQ2 2024
+ Net salesQ1 2024
+ Net salesQ4 2023)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
An examination of the quarterly financial data reveals notable fluctuations and trends in operating income, net sales, and operating profit margin over the observed periods.
- Operating Income (Loss)
- The operating income exhibits significant variability across the quarters. In the earlier period (2019), substantial losses are apparent, notably a large loss of -117,866 thousand USD at the end of 2019. However, beginning in 2020, the figures shift towards positive territory with pronounced gains, peaking at 207,163 thousand USD in September 2020. Despite some intermittent declines, overall operating income demonstrates an upward trend post-2019, with particularly strong results from late 2021 onward. The highest quarterly operating incomes occur in the recent periods, with values such as 397,784 thousand USD in December 2023. The data suggests recovery and strengthened operational performance, albeit with occasional quarters presenting moderate decreases.
- Net Sales
- Net sales remain relatively stable but with periods of marked growth and contraction across the quarters. Initial quarters show moderate sales levels around 530,000 to 640,000 thousand USD. A pronounced spike is evident in December 2019 with net sales reaching nearly 1.4 million USD, although this is followed by a drop in early 2020 to approximately 532,000 thousand USD. Subsequent quarters exhibit a rising trend in net sales overall, achieving new highs in late 2022 and 2023, peaking above 1.1 million USD in December 2023. This trend indicates expanding revenue streams and possibly increased market demand or operational capacity.
- Operating Profit Margin
- Operating profit margin data is unavailable for initial periods but begins to show a marked improvement after 2019. Margins transition from consistently negative percentages in early 2020, with values below -5%, towards positive figures by mid-2020. The margin trend progresses sharply upward from 2020 through 2024, reflecting improved profitability and cost control. Notably, operating profit margins exceed 20% frequently in 2021 and beyond, peaking at around 34.68% in mid-2024. This upward trajectory underscores enhanced efficiency and margin management, aligning with the improvements seen in operating income and net sales.
In summary, despite early period challenges marked by operating losses and negative margins, the subsequent years see substantial recovery. Growth in net sales is accompanied by significant profitability improvements, as reflected in rising operating incomes and profit margins. The recent quarters demonstrate robust operational efficiency and increased financial strength. This overall positive trend suggests successful strategic initiatives and effective management in driving financial performance forward.
Net Profit Margin
First Solar Inc., net profit margin calculation (quarterly data)
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||||
| Net income (loss) | ||||||||||||||||||||||||||||||
| Net sales | ||||||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||
| Net profit margin1 | ||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Net Profit Margin, Competitors2 | ||||||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | ||||||||||||||||||||||||||||||
| Analog Devices Inc. | ||||||||||||||||||||||||||||||
| Applied Materials Inc. | ||||||||||||||||||||||||||||||
| Broadcom Inc. | ||||||||||||||||||||||||||||||
| Intel Corp. | ||||||||||||||||||||||||||||||
| KLA Corp. | ||||||||||||||||||||||||||||||
| Lam Research Corp. | ||||||||||||||||||||||||||||||
| Micron Technology Inc. | ||||||||||||||||||||||||||||||
| NVIDIA Corp. | ||||||||||||||||||||||||||||||
| Qualcomm Inc. | ||||||||||||||||||||||||||||||
| Texas Instruments Inc. | ||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q3 2024 Calculation
Net profit margin = 100
× (Net income (loss)Q3 2024
+ Net income (loss)Q2 2024
+ Net income (loss)Q1 2024
+ Net income (loss)Q4 2023)
÷ (Net salesQ3 2024
+ Net salesQ2 2024
+ Net salesQ1 2024
+ Net salesQ4 2023)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The financial data over multiple quarters reveals significant dynamics in net income, net sales, and net profit margin, showing phases of volatility and growth.
- Net Income (Loss)
- Initially, net income was negative in early 2019, with notable losses such as -67,599 thousand US dollars for March 31, 2019, and -59,408 thousand US dollars at the end of 2019. This negative trend shifted toward positive figures starting in 2020, where net income increased markedly, reaching as high as 155,037 thousand US dollars in the third quarter of 2020. Despite periodic declines, such as the loss recorded at the end of 2021 and early 2022, net income generally recovered thereafter and showed robust growth from mid-2023 onward, peaking above 349,000 thousand US dollars in the fourth quarter of 2023. The first three quarters of 2024 sustain this high performance, with net income values above 236,000 thousand US dollars.
- Net Sales
- Net sales exhibited fluctuations through the periods, with an initial range between approximately 532 million and 1.4 billion US dollars within 2019 and 2020. The highest sales figure in early data appears in the fourth quarter of 2019 with nearly 1.4 billion US dollars but this figure decreases in the subsequent quarter. In the recent quarters, sales generally oscillated around 600 million to over 1.1 billion US dollars, peaking at 1.15 billion US dollars in the fourth quarter of 2023. The data from 2023 through mid-2024 indicates strong sales performance, with values consistently above 750 million US dollars, suggesting improved market demand or sales efficiency.
- Net Profit Margin
- The net profit margin has shown a clear upward trajectory overall, starting negative or minimal in early 2019 and turning positive and expanding substantially over the years. Margins moved from -3.75% at the end of 2019 to as high as around 32% by the first quarter of 2024. This increasing profitability ratio indicates improved cost management or higher revenue quality relative to expenses over time. Although there are dips and volatility around late 2021 to early 2022, the trend from mid-2022 onward is generally positive, reaching new highs towards 2024.
In summary, the company’s quarterly financial results indicate a recovery and growth phase beginning around 2020, with net income shifting from losses to substantial profits. Net sales show variable but generally growing trends, reflecting strong market activity. The rising net profit margin corroborates the improvement in profitability and operational efficiency. Together, these factors suggest strengthened financial health and enhanced earnings capability over the examined periods.
Return on Equity (ROE)
First Solar Inc., ROE calculation (quarterly data)
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||||
| Net income (loss) | ||||||||||||||||||||||||||||||
| Stockholders’ equity | ||||||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||
| ROE1 | ||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| ROE, Competitors2 | ||||||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | ||||||||||||||||||||||||||||||
| Analog Devices Inc. | ||||||||||||||||||||||||||||||
| Applied Materials Inc. | ||||||||||||||||||||||||||||||
| Broadcom Inc. | ||||||||||||||||||||||||||||||
| Intel Corp. | ||||||||||||||||||||||||||||||
| KLA Corp. | ||||||||||||||||||||||||||||||
| Lam Research Corp. | ||||||||||||||||||||||||||||||
| Micron Technology Inc. | ||||||||||||||||||||||||||||||
| NVIDIA Corp. | ||||||||||||||||||||||||||||||
| Qualcomm Inc. | ||||||||||||||||||||||||||||||
| Texas Instruments Inc. | ||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q3 2024 Calculation
ROE = 100
× (Net income (loss)Q3 2024
+ Net income (loss)Q2 2024
+ Net income (loss)Q1 2024
+ Net income (loss)Q4 2023)
÷ Stockholders’ equity
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
The analysis of key financial indicators over the examined periods reveals several notable trends and fluctuations. Net income exhibited significant volatility, with periods of both losses and gains. Initially, there was a considerable loss of $67,599 thousand in the first quarter of 2019, which improved to positive territory by September 2019 with a net income of $30,622 thousand. This pattern of fluctuation continued, including a peak in the fourth quarter of 2020 with net income surpassing $155 million, followed by alternating gains and losses in subsequent quarters. More recently, there has been a consistent increase in net income from 2023 through the first three quarters of 2024, reaching over $312 million in the third quarter of 2024, indicating a strong upward earnings trend.
Stockholders’ equity showed a general upward trend throughout the entire period, despite minor declines in some quarters. Starting at approximately $5.13 billion in early 2019, equity rose steadily to reach about $7.59 billion by the third quarter of 2024. This growth signifies increased retained earnings and possibly capital inflows, reflecting overall balance sheet strengthening over time.
Return on Equity (ROE) exhibited initial instability but showed a clear upward trajectory over the analyzed quarters. Data for ROE started being available from the third quarter of 2019, where it reflected a negative return of -2.26%, followed by a period of gradual improvement. By the end of 2019 and into 2020, ROE increased, at times surpassing 7%. A decline occurred in 2022, coinciding with variable net income performance. However, ROE regained momentum in 2023 and throughout 2024, reaching double digits and peaking at over 16% in the third quarter of 2024. This trend suggests improving profitability relative to shareholder equity.
Overall, the company has demonstrated significant improvement in profitability metrics and equity base over the years. The positive momentum in net income and ROE during the most recent quarters indicates enhanced operational performance and efficient use of equity capital. Despite intermittent quarters with losses or declines, the general direction points toward a stronger financial position and improved shareholder returns.
Return on Assets (ROA)
First Solar Inc., ROA calculation (quarterly data)
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||||
| Net income (loss) | ||||||||||||||||||||||||||||||
| Total assets | ||||||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||
| ROA1 | ||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| ROA, Competitors2 | ||||||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | ||||||||||||||||||||||||||||||
| Analog Devices Inc. | ||||||||||||||||||||||||||||||
| Applied Materials Inc. | ||||||||||||||||||||||||||||||
| Broadcom Inc. | ||||||||||||||||||||||||||||||
| Intel Corp. | ||||||||||||||||||||||||||||||
| KLA Corp. | ||||||||||||||||||||||||||||||
| Lam Research Corp. | ||||||||||||||||||||||||||||||
| Micron Technology Inc. | ||||||||||||||||||||||||||||||
| NVIDIA Corp. | ||||||||||||||||||||||||||||||
| Qualcomm Inc. | ||||||||||||||||||||||||||||||
| Texas Instruments Inc. | ||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q3 2024 Calculation
ROA = 100
× (Net income (loss)Q3 2024
+ Net income (loss)Q2 2024
+ Net income (loss)Q1 2024
+ Net income (loss)Q4 2023)
÷ Total assets
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
- Net Income (Loss) Trend
- The net income of the company exhibits significant volatility with notable fluctuations across the quarters. Initial figures in 2019 show a net loss, particularly a substantial loss in the first quarter of 2019. This was followed by a recovery with profits appearing from mid-2019 through 2021, during which the net income grew substantially, peaking multiple times, such as at the end of 2020 and early 2021. After a period of fluctuating profits and some losses around 2022, the net income shifted strongly upwards again in 2023 and into 2024, reaching historically high values by the latest quarters. The pattern suggests cyclical influences or significant one-time impacts affecting profitability. The overall direction from 2019 to 2024 indicates an improvement in profitability despite periods of loss.
- Total Assets Evolution
- The total assets of the company have shown a generally steady upward trend over the observed period. Starting at approximately 7.25 billion US dollars in early 2019, total assets experienced minor fluctuations but consistently increased overall. A marked acceleration in asset growth occurs beginning around late 2022 and continues through 2023 and into 2024, with total assets surpassing 11 billion US dollars by the third quarter of 2024. This steady increase in asset base indicates expansion and potentially increased operational capacity or investment in long-term resources.
- Return on Assets (ROA) Analysis
- ROA data starting from late 2019 reveals a progressive improvement in the company’s efficiency in generating profit from its assets. Initially, ROA was negative, reflecting unprofitable operations, but there is a clear upward trajectory thereafter. ROA rises from a negative figure in 2019 to solid positive values consistently above 5% in 2020 and 2021. Despite some declines and variability in ROA during 2022, the ratio again shows strong improvement in 2023 and reaches peaks near or above 10% in 2023 and 2024. This rising trend suggests enhanced management effectiveness and profitability relative to asset utilization.
- Overall Financial Position and Performance Observations
- The company’s financial performance over the period demonstrates resilience with increasing net income and asset base. The improving ROA confirms better earnings relative to assets, despite some intermittent volatility in earnings. The fluctuations in net income indicate possible impact from market conditions or operational changes, but the strong asset growth and increasing profitability margins highlight a positive long-term outlook. The data reflects a transition from net losses to sustained profitability, with efficiency gains evident in the latter periods.