First Solar Inc (FSLR)

Return on assets (ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	1,292,040	830,777	-44,166	468,693	398,355
Total assets	US$ in thousands	12,124,400	10,365,100	8,251,230	7,413,750	7,108,930
ROA		10.66%	8.02%	-0.54%	6.32%	5.60%

December 31, 2024 calculation

ROA = Net income ÷ Total assets
= $1,292,040K ÷ $12,124,400K
= 10.66%

First Solar Inc's return on assets (ROA) has shown variations over the past five years. In December 2020, the ROA was at 5.60%, which increased to 6.32% by December 2021, indicating improved asset utilization efficiency. However, the ROA decreased significantly to -0.54% by December 2022, suggesting a potential decline in profitability relative to its asset base.

The following year, in December 2023, the ROA rebounded to 8.02%, surpassing the levels seen in the previous years. This increase may indicate enhanced operational efficiency and better management of assets. By December 2024, the ROA further improved to 10.66%, reaching a multi-year high. This significant rise signifies the company's ability to generate higher profits relative to its assets, reflecting positively on its overall financial performance and possibly indicating effective strategic decisions and growth initiatives.

In summary, the trend in First Solar Inc's ROA demonstrates fluctuations over the years, with notable gains in recent periods, suggesting potential improvements in asset utilization and profitability. It is essential for investors and stakeholders to monitor these metrics to assess the company's financial health and performance over time.