First Solar Inc (FSLR)

Pretax margin

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	891,290	508,037	155,892	107,025	8,598	182,336	290,056	253,247	572,162	454,299	601,403	545,733	291,061	151,485	3,998	-49,931	-120,413	17,560	32,049	-15,802
Revenue (ttm)	US$ in thousands	3,318,599	3,162,439	2,990,282	2,800,564	2,619,318	2,524,247	2,478,818	2,487,043	2,923,377	2,625,290	2,969,351	2,982,582	2,711,332	3,501,480	3,120,721	3,063,266	3,063,120	2,354,981	2,484,395	2,208,757
Pretax margin		26.86%	16.06%	5.21%	3.82%	0.33%	7.22%	11.70%	10.18%	19.57%	17.30%	20.25%	18.30%	10.73%	4.33%	0.13%	-1.63%	-3.93%	0.75%	1.29%	-0.72%

December 31, 2023 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $891,290K ÷ $3,318,599K
= 26.86%

First Solar Inc's pretax margin has shown fluctuations over the past eight quarters. The pretax margin has displayed an upward trend, starting at 0.33% in Q4 2022 and reaching its peak at 26.86% in Q4 2023. This indicates an improvement in the company's ability to generate profit before taxes relative to its total revenue. However, the pretax margin experienced significant variability during this period, with fluctuations between low single-digit percentages to high double-digit percentages.

The company's ability to control expenses and enhance operational efficiency has contributed to the increasing pretax margin over time. Investors may view the rising pretax margin positively as it indicates improved profitability. It is essential for First Solar Inc to sustain this upward trajectory and continue implementing effective cost management strategies to maintain and potentially enhance its pretax margin in the future.