First Solar Inc (FSLR)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 830,777 | -44,166 | 468,693 | 398,355 | -114,933 |
| Total assets | US$ in thousands | 10,365,100 | 8,251,230 | 7,413,750 | 7,108,930 | 7,515,690 |
| ROA | 8.02% | -0.54% | 6.32% | 5.60% | -1.53% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $830,777K ÷ $10,365,100K
= 8.02%
The return on assets (ROA) for First Solar Inc has shown variability over the past five years. In 2023, the ROA was 8.02%, which represents a substantial improvement compared to the previous year where the ROA was at -0.54%. This indicates that the company was able to generate 8.02 cents of profit for every dollar of assets it owns in 2023.
In 2022, the negative ROA of -0.54% suggests that the company incurred a loss or had a lower level of profitability relative to its assets. However, in 2021, the ROA increased significantly to 6.32%, indicating that the company was more efficient in utilizing its assets to generate profit.
The ROA for 2020 was 5.60%, showing a positive trend in profitability relative to assets. In contrast, in 2019, the ROA was -1.53%, indicating that the company faced challenges in generating profit from its assets during that year.
Overall, the positive ROA figures in recent years demonstrate that First Solar Inc has been improving its ability to generate earnings from its assets, reflecting positively on its efficiency and profitability levels.
Peer comparison
Dec 31, 2023