First Solar Inc (FSLR)

Return on assets (ROA)

		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
Net income (ttm)	US$ in thousands	1,291,927	1,167,209	1,024,832	830,777	473,990	156,424	41,650	-44,166	94,752	189,123	215,767	468,693	453,026	562,860	517,322	398,355	223,244	98,829	43,370	-114,933
Total assets	US$ in thousands	12,124,400	11,436,600	10,760,600	10,365,100	9,582,640	8,997,170	8,564,600	8,251,230	7,492,820	7,419,370	7,399,220	7,413,750	7,268,630	7,248,470	7,108,910	7,108,930	6,985,220	7,072,620	6,949,140	7,515,690
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%

December 31, 2024 calculation

ROA = Net income (ttm) ÷ Total assets
= $1,291,927K ÷ $12,124,400K
= 10.66%

First Solar Inc's Return on Assets (ROA) fluctuated over the given period. The ROA started at a negative value of -1.53% as of December 31, 2019, indicating that the company was not effectively utilizing its assets to generate profits. However, there was a gradual improvement in ROA, reaching 10.66% by December 31, 2024. This signifies that First Solar Inc became more efficient in generating earnings relative to its total assets.

The increasing trend in ROA from 2019 to 2024 suggests that First Solar Inc focused on optimizing its asset utilization and potentially improving profitability. The company may have implemented strategic initiatives to enhance operational efficiency, streamline costs, or increase revenue generation from its asset base. Investors and stakeholders can interpret the rising ROA positively as it indicates improved management of the company's assets to create value for shareholders. However, the slight dip in ROA in the last quarter of 2024 could prompt further analysis to understand the factors influencing this change.