First Solar Inc (FSLR)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	7,977,580	6,687,470	5,836,060	5,959,550	5,520,930
ROE		16.20%	12.42%	-0.76%	7.86%	7.22%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $1,292,040K ÷ $7,977,580K
= 16.20%

First Solar Inc's return on equity (ROE) indicates the company's profitability in relation to its shareholders' equity. The ROE has fluctuated over the past years:

1. As of December 31, 2020, the ROE stood at 7.22%, reflecting a moderate level of profitability relative to the equity invested by the shareholders.

2. By December 31, 2021, the ROE improved slightly to 7.86%, indicating a marginal increase in profitability compared to the previous year.

3. The company experienced a negative ROE of -0.76% as of December 31, 2022, suggesting that the company did not generate adequate profits relative to the shareholders' equity during that period.

4. However, by December 31, 2023, the ROE surged to 12.42%, indicating a significant improvement in profitability, which may be attributed to operational efficiencies or strategic decisions.

5. As of the most recent data available on December 31, 2024, the ROE reached 16.20%, showcasing a further increase in profitability, potentially driven by enhanced financial performance or effective utilization of equity.

Overall, the trend in First Solar Inc's ROE demonstrates fluctuations over the years, with the company experiencing varying levels of profitability relative to shareholder equity. It is essential for stakeholders to monitor these fluctuations and understand the underlying factors influencing the company's financial performance.