Analysis of Reportable Segments
First Solar Inc. operates in 2 segments: Modules Business and Other.
Segment Profit Margin
First Solar Inc., profit margin by reportable segment
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| Modules Business | 4.75% | 20.29% | 24.72% | 19.87% | -10.05% |
| Other | -23.84% | 43.42% | 25.79% | 16.17% | 25.41% |
Based on: 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).
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Modules Business | Modules Business segment profit margin ratio deteriorated from 2020 to 2021 and from 2021 to 2022. |
| Other | Other segment profit margin ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Segment Profit Margin: Modules Business
First Solar Inc.; Modules Business; segment profit margin calculation
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Gross profit (loss) | 115,397) | 472,926) | 429,131) | 290,079) | (50,467) |
| Net sales | 2,428,278) | 2,331,380) | 1,736,060) | 1,460,116) | 502,001) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 4.75% | 20.29% | 24.72% | 19.87% | -10.05% |
Based on: 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).
1 2022 Calculation
Segment profit margin = 100 × Gross profit (loss) ÷ Net sales
= 100 × 115,397 ÷ 2,428,278 = 4.75%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Modules Business | Modules Business segment profit margin ratio deteriorated from 2020 to 2021 and from 2021 to 2022. |
Segment Profit Margin: Other
First Solar Inc.; Other; segment profit margin calculation
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Gross profit (loss) | (45,539) | 257,028) | 251,542) | 259,133) | 442,644) |
| Net sales | 191,041) | 591,997) | 975,272) | 1,603,001) | 1,742,043) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | -23.84% | 43.42% | 25.79% | 16.17% | 25.41% |
Based on: 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).
1 2022 Calculation
Segment profit margin = 100 × Gross profit (loss) ÷ Net sales
= 100 × -45,539 ÷ 191,041 = -23.84%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Other | Other segment profit margin ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Net sales
First Solar Inc., net sales by reportable segment
US$ in thousands
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| Modules Business | 2,428,278) | 2,331,380) | 1,736,060) | 1,460,116) | 502,001) |
| Other | 191,041) | 591,997) | 975,272) | 1,603,001) | 1,742,043) |
| Total | 2,619,319) | 2,923,377) | 2,711,332) | 3,063,117) | 2,244,044) |
Based on: 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).
Gross profit (loss)
First Solar Inc., gross profit (loss) by reportable segment
US$ in thousands
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| Modules Business | 115,397) | 472,926) | 429,131) | 290,079) | (50,467) |
| Other | (45,539) | 257,028) | 251,542) | 259,133) | 442,644) |
| Total | 69,858) | 729,954) | 680,673) | 549,212) | 392,177) |
Based on: 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).