First Solar Inc (FSLR)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 6,687,470 | 5,836,060 | 5,959,550 | 5,520,930 | 5,096,770 |
| ROE | 12.42% | -0.76% | 7.86% | 7.22% | -2.26% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $830,777K ÷ $6,687,470K
= 12.42%
First Solar Inc's return on equity (ROE) has displayed varying trends over the past five years. In 2023, the ROE improved significantly to 12.42% compared to the negative ROE of -0.76% in 2022. This is a positive sign as it indicates the company generated a respectable return for its shareholders in 2023.
Looking back at the historical data, the ROE was 7.86% in 2021 and 7.22% in 2020, showing relatively consistent performance in generating shareholder value during those years. However, the ROE was negative in 2019 at -2.26%, indicating the company faced challenges in generating profits relative to the shareholders' equity during that period.
Overall, the upward trend in ROE from 2022 to 2023 reflects an improvement in First Solar Inc's ability to generate profits with the shareholders' investment. It suggests that the company's profitability and efficiency in utilizing equity capital have strengthened recently, potentially indicating positive prospects for shareholder returns in the future.
Peer comparison
Dec 31, 2023