First Solar Inc (FSLR)

Gross profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Gross profit	US$ in thousands	1,857,860	1,300,680	69,858	729,954	680,673
Revenue	US$ in thousands	4,206,290	3,318,600	2,619,320	2,923,380	2,711,330
Gross profit margin		44.17%	39.19%	2.67%	24.97%	25.10%

December 31, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $1,857,860K ÷ $4,206,290K
= 44.17%

First Solar Inc's gross profit margin has displayed varying trends over the years based on the provided data. As of December 31, 2020, the gross profit margin stood at 25.10%, reflecting the percentage of revenue retained after accounting for the cost of goods sold. This margin slightly decreased to 24.97% by December 31, 2021, indicating a minor decline in profitability.

However, a significant decrease in the gross profit margin was observed by December 31, 2022, plummeting to 2.67%. This sharp decline may suggest challenges in managing production costs or pricing strategies during that period.

Subsequently, there was a notable recovery and improvement in profitability as of December 31, 2023, with the gross profit margin rising to 39.19%. This increase likely reflects a successful implementation of cost-saving measures or increased sales prices relative to production costs.

By December 31, 2024, First Solar Inc's gross profit margin further strengthened to 44.17%, reaching the highest level in the provided data series. This highlights the company's ability to enhance operational efficiency, streamline costs, or enhance pricing strategies to bolster profitability.

Overall, the fluctuating trend in First Solar Inc's gross profit margin underscores the importance of closely monitoring and analyzing financial performance metrics to assess the company's operational effectiveness and pricing strategies.