First Solar Inc (FSLR)

Pretax margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Earnings before tax but after interest (EBT)	US$ in thousands	1,406,340	891,290	8,598	572,162	291,061
Revenue	US$ in thousands	4,206,290	3,318,600	2,619,320	2,923,380	2,711,330
Pretax margin		33.43%	26.86%	0.33%	19.57%	10.73%

December 31, 2024 calculation

Pretax margin = EBT ÷ Revenue
= $1,406,340K ÷ $4,206,290K
= 33.43%

First Solar Inc's pretax margin has shown varying trends over the years, based on the provided data. In December 31, 2020, the pretax margin was at 10.73%, indicating that for every dollar of revenue generated, the company retained $0.1073 before accounting for taxes.

By December 31, 2021, the pretax margin improved significantly to 19.57%, suggesting enhanced efficiency in cost management or increased revenue generation relative to the previous year. This improvement indicates the company's ability to generate higher profits before taxes.

However, in December 31, 2022, the pretax margin dropped sharply to 0.33%, signaling potential challenges or a decrease in profitability during that period. It would require further investigation to understand the underlying reasons for this decline and its impact on the company's overall financial performance.

In December 31, 2023, the pretax margin rebounded strongly to 26.86%, indicating a significant recovery or improvement in profitability compared to the previous year. This uptrend suggests effective cost controls, increased operational efficiency, or revenue growth.

Finally, by December 31, 2024, the pretax margin reached its peak at 33.43%, showcasing a substantial increase in profitability and potentially reflecting successful strategic initiatives or favorable market conditions for First Solar Inc.

In conclusion, the pretax margin of First Solar Inc has shown notable fluctuations over the years, with periods of both decline and growth. Analyzing these trends can provide valuable insights into the company's performance and financial health.