First Solar Inc (FSLR)

Operating profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Operating income	US$ in thousands	1,394,420	857,266	-27,236	586,751	317,489
Revenue	US$ in thousands	4,206,290	3,318,600	2,619,320	2,923,380	2,711,330
Operating profit margin		33.15%	25.83%	-1.04%	20.07%	11.71%

December 31, 2024 calculation

Operating profit margin = Operating income ÷ Revenue
= $1,394,420K ÷ $4,206,290K
= 33.15%

Based on the data provided, the operating profit margin of First Solar Inc has displayed variability over the years. In December 2020, the operating profit margin stood at 11.71%, indicating that the company was generating 11.71 cents of operating profit for every dollar in revenue.

By December 2021, there was a notable improvement in the operating profit margin, reaching 20.07%, suggesting enhanced operational efficiency and cost management within the organization.

However, there was a significant decline in the operating profit margin in December 2022, plunging to -1.04%. This negative figure indicates that the company's operating expenses exceeded its operating income, resulting in a loss from operations during that period.

The trend reversed in December 2023, with the operating profit margin significantly improving to 25.83%, reflecting a strong performance in generating profits from its core business activities.

Finally, by December 2024, the operating profit margin reached 33.15%, showcasing further enhancement in the company's profitability and operational effectiveness.

Overall, it is evident that First Solar Inc's operating profit margin has shown fluctuations over the years, highlighting the company's ability to adapt to changing market conditions and its efficiency in managing operating costs to drive profitability.