First Solar Inc (FSLR)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 44.17% | 39.19% | 2.67% | 24.97% | 25.10% |
| Operating profit margin | 33.15% | 25.83% | -1.04% | 20.07% | 11.71% |
| Pretax margin | 33.43% | 26.86% | 0.33% | 19.57% | 10.73% |
| Net profit margin | 30.72% | 25.03% | -1.69% | 16.03% | 14.69% |
First Solar Inc's Gross Profit Margin has shown fluctuations over the years, with a noticeable dip in 2022 at 2.67% but significant recovery in 2024 at 44.17%. This indicates variability in the company's ability to generate profits after accounting for the cost of goods sold.
The Operating Profit Margin has also been volatile, with a negative figure in 2022 (-1.04%) and a marked improvement in 2024 at 33.15%. This suggests that First Solar Inc's operational efficiency and cost management have been inconsistent over the years.
In terms of Pretax Margin, the company experienced a considerable increase from 2019 to 2023, indicating enhanced profitability before taxes. The Pretax Margin peaked in 2024 at 33.43%, signaling strong earnings performance for the period.
Net Profit Margin, reflecting the company's profitability after all expenses, showed a sharp decline in 2022 (-1.69%), followed by a significant recovery in 2024 at 30.72%, demonstrating improved profitability.
Overall, First Solar Inc's profitability ratios have exhibited fluctuations, with some years showing strong performance while others faced challenges. The company's ability to manage costs, generate profits, and sustain growth will be key factors in its financial performance moving forward.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 11.50% | 8.27% | -0.33% | 7.91% | 4.47% |
| Return on assets (ROA) | 10.66% | 8.02% | -0.54% | 6.32% | 5.60% |
| Return on total capital | 16.70% | 12.64% | 0.35% | 9.45% | 5.47% |
| Return on equity (ROE) | 16.20% | 12.42% | -0.76% | 7.86% | 7.22% |
First Solar Inc's profitability ratios indicate varying performance over the past five years. The Operating Return on Assets (Operating ROA) improved from 4.47% in December 2020 to 11.50% in December 2024, showing a positive trend. Return on Assets (ROA) also saw an increase from 5.60% in 2020 to 10.66% in 2024.
Return on Total Capital increased significantly from 5.47% in December 2020 to 16.70% in December 2024, reflecting a notable improvement in utilizing total capital effectively. Return on Equity (ROE) exhibited a similar positive trend, rising from 7.22% in 2020 to 16.20% in 2024.
Overall, First Solar Inc's profitability ratios demonstrate a positive trajectory in recent years, with improved efficiency in generating returns for both assets and equity holders. However, there was a dip in some ratios in 2022, suggesting potential challenges or operational issues during that period.