First Solar Inc (FSLR)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 39.19% | 2.67% | 24.97% | 25.10% | 17.93% |
| Operating profit margin | 25.83% | -1.04% | 20.07% | 11.71% | -5.28% |
| Pretax margin | 26.86% | 0.33% | 19.57% | 10.73% | -3.93% |
| Net profit margin | 25.03% | -1.69% | 16.03% | 14.69% | -3.75% |
First Solar Inc's profitability ratios show a significant improvement over the past five years. The gross profit margin has been volatile, reaching its highest point in 2023 at 39.19%, indicating the company's ability to control production costs and generate profits from its core operations.
The operating profit margin has seen a notable recovery from a negative figure in 2022 to a positive 26.70% in 2023, demonstrating the company's efficiency in managing operating expenses and increasing profitability from its operational activities.
Similarly, the pretax margin has shown a consistent positive trend over the years, reaching 26.86% in 2023, indicating that the company is effectively managing its pre-tax earnings relative to its total revenue.
Furthermore, the net profit margin has also seen a significant improvement, with 25.03% in 2023, reflecting the company's ability to generate profits after accounting for all expenses, including tax obligations.
Overall, the improving trend in First Solar Inc's profitability ratios suggests stronger financial performance and management efficiency in recent years, which is a positive indicator for investors and stakeholders.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 8.27% | -0.33% | 7.91% | 4.47% | -2.15% |
| Return on assets (ROA) | 8.02% | -0.54% | 6.32% | 5.60% | -1.53% |
| Return on total capital | 12.64% | 0.35% | 9.45% | 5.47% | -1.68% |
| Return on equity (ROE) | 12.42% | -0.76% | 7.86% | 7.22% | -2.26% |
First Solar Inc's profitability ratios show some fluctuations over the past five years.
- Operating return on assets (Operating ROA) has been positive in all years except for 2022, indicating that the company generates a positive operating profit relative to its total assets, with a notable increase in 2023 compared to the previous years.
- Return on assets (ROA) has shown inconsistency, with negative values in 2022 and 2019. However, there has been an improvement in the most recent years, with 2023 showing a significant increase.
- Return on total capital reflects the company's ability to generate profit from its total capital, and it exhibits a rebound from negative in 2022 to a positive value in 2023, reaching the highest level in the last five years.
- Return on equity (ROE) has also experienced fluctuations, including negative values in 2019. The ratio demonstrates the company's ability to generate profit for its shareholders, and there is a notable upward trend in recent years, with 2023 showing the highest ROE in the dataset.
Overall, despite some variations, there is a general trend of improvement in profitability ratios for First Solar Inc, especially in the most recent year, indicating enhanced efficiency in generating profits relative to its assets and equity.