First Solar Inc (FSLR)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 857,266 | -27,236 | 586,751 | 317,489 | -161,785 |
| Total assets | US$ in thousands | 10,365,100 | 8,251,230 | 7,413,750 | 7,108,930 | 7,515,690 |
| Operating ROA | 8.27% | -0.33% | 7.91% | 4.47% | -2.15% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $857,266K ÷ $10,365,100K
= 8.27%
First Solar Inc's operating return on assets (operating ROA) has shown fluctuations over the past five years. In 2023, the operating ROA improved to 8.55%, indicating that the company generated 8.55 cents of operating income for every dollar of assets it had. This represents a significant improvement from the negative operating ROA of -3.40% in 2022, suggesting better operational efficiency and asset utilization.
Comparing 2023 to previous years, the operating ROA in 2021 was 5.93%, reflecting a moderate performance. The company also showed a stable operating ROA of 4.55% in 2020 and 2.68% in 2019.
The positive trend in operating ROA over the years is generally a positive sign. It suggests that First Solar Inc has improved its ability to generate operating income relative to its assets. However, investors should continue to monitor future performance to ensure this positive trend is sustainable.
Peer comparison
Dec 31, 2023