First Solar Inc (FSLR)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 891,290 | 8,598 | 572,162 | 291,061 | -120,413 |
| Revenue | US$ in thousands | 3,318,600 | 2,619,320 | 2,923,380 | 2,711,330 | 3,063,120 |
| Pretax margin | 26.86% | 0.33% | 19.57% | 10.73% | -3.93% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $891,290K ÷ $3,318,600K
= 26.86%
The pretax margin measures a company's efficiency in generating profits before tax expenses relative to its total revenue.
First Solar Inc's pretax margin has shown fluctuations over the past five years. In 2019, the company had a negative pretax margin of -3.93%, indicating that its expenses exceeded its revenues before taxes. However, in subsequent years, there was a significant improvement in the company's profitability.
The pretax margin increased to 10.73% in 2020, further improved to 19.57% in 2021, before experiencing a slight decline to 0.33% in 2022. Notably, in 2023, the pretax margin surged to 26.86%, indicating a substantial increase in profitability compared to the previous year.
Overall, the trend in First Solar Inc's pretax margin demonstrates an overall positive trajectory, with the company effectively managing its operational costs and achieving higher levels of profitability in recent years.
Peer comparison
Dec 31, 2023