First Solar Inc (FSLR)
Profitability ratios
Return on sales
| Dec 31, 2024 | Sep 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 42.74% | 45.85% | 43.05% | 39.19% | 27.17% | 16.86% | 6.09% | 2.67% | 10.13% | 14.50% | 22.38% | 24.97% | 24.50% | 27.34% | 25.99% | 25.10% | 24.40% | 22.42% | 20.87% | 17.93% |
| Operating profit margin | 32.60% | 33.94% | 30.37% | 25.83% | 13.08% | 2.42% | 1.73% | -1.04% | 7.60% | 12.55% | 11.12% | 20.07% | 17.95% | 21.14% | 19.05% | 11.71% | 4.05% | -0.77% | -2.73% | -5.28% |
| Pretax margin | 32.29% | 34.33% | 31.17% | 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% |
| Net profit margin | 29.67% | 32.05% | 28.75% | 25.03% | 14.99% | 5.23% | 1.49% | -1.69% | 3.75% | 7.63% | 8.68% | 16.03% | 17.26% | 18.96% | 17.34% | 14.69% | 6.38% | 3.17% | 1.42% | -3.75% |
First Solar Inc's profitability ratios indicate the company's ability to generate profits from its operations over time.
1. Gross Profit Margin: The gross profit margin reflects the percentage of revenue that remains after deducting the cost of goods sold. First Solar's gross profit margin fluctuated between 2.67% and 45.85% during the period. The margin peaked at 45.85% in September 2024, indicating efficient cost management, but declined to 2.67% by December 2022, possibly due to increased production costs.
2. Operating Profit Margin: The operating profit margin indicates the percentage of revenue that translates into operating profits before interest and taxes. First Solar's operating profit margin ranged from -5.28% to 33.94% over the period. The margin saw a significant improvement from negative figures in 2019 to a positive peak of 33.94% in September 2024, showing better operational efficiency and cost control.
3. Pretax Margin: The pretax margin represents the proportion of revenue that converts into pre-tax profits. First Solar's pretax margin varied from -3.93% to 34.33% during the period. The company experienced a gradual increase in profitability, with the margin reaching a peak of 34.33% in September 2024. This suggests an enhancement in overall business performance and financial health.
4. Net Profit Margin: The net profit margin measures the percentage of revenue that remains as net income after all expenses and taxes have been deducted. First Solar's net profit margin fluctuated between -1.69% and 32.05% during the period. The margin rebounded from negative figures to reach 32.05% in September 2024, indicating successful cost management and revenue growth strategies.
Overall, First Solar Inc showed significant improvements in profitability over the analyzed period, with margins generally increasing, implying enhanced operational efficiency and effective cost management strategies, particularly in the latter years of the period. However, the decline in some margins in the later quarters of the analysis may require further investigation to understand the factors impacting profitability.
Return on investment
| Dec 31, 2024 | Sep 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 11.71% | 10.81% | 10.06% | 8.27% | 4.32% | 0.80% | 0.57% | -0.33% | 2.56% | 4.19% | 3.74% | 7.91% | 6.48% | 8.66% | 7.99% | 4.47% | 2.03% | -0.34% | -1.20% | -2.15% |
| Return on assets (ROA) | 10.66% | 10.21% | 9.52% | 8.02% | 4.95% | 1.74% | 0.49% | -0.54% | 1.26% | 2.55% | 2.92% | 6.32% | 6.23% | 7.77% | 7.28% | 5.60% | 3.20% | 1.40% | 0.62% | -1.53% |
| Return on total capital | 17.09% | 15.87% | 15.47% | 12.64% | 7.64% | 2.53% | 1.89% | 0.35% | 3.19% | 4.97% | 4.35% | 9.45% | 7.71% | 10.28% | 9.51% | 5.47% | 3.25% | 0.42% | -0.51% | -1.68% |
| Return on equity (ROE) | 16.19% | 15.37% | 14.85% | 12.42% | 7.52% | 2.59% | 0.71% | -0.76% | 1.63% | 3.21% | 3.67% | 7.86% | 7.77% | 9.73% | 9.08% | 7.22% | 4.14% | 1.89% | 0.84% | -2.26% |
First Solar Inc's profitability ratios show a fluctuating trend over the reporting periods.
- Operating return on assets (Operating ROA) improved from negative figures in 2019 and 2020 to reach a peak of 11.71% by the end of 2024.
- Return on assets (ROA) similarly increased over the years, with significant growth seen from 2021 to 2024, reaching 10.66% by the end of 2024.
- Return on total capital also witnessed a steady growth trajectory, starting at -1.68% in 2019 and reaching 17.09% by the end of 2024.
- Return on equity (ROE) exhibited a similar pattern of improvement, with a rise from negative figures in 2019 to a high of 16.19% by the end of 2024.
Overall, the profitability ratios of First Solar Inc reflect a positive trend, indicating the company's increasing ability to generate profits in relation to its assets and capital over the years.