First Solar Inc (FSLR)

Return on total capital

		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	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	904,255	517,067	164,179	117,133	20,823	193,958	301,645	266,223	585,269	467,894	623,015	565,976	315,097	175,551	22,065	-26,197	-93,347	53,054	65,765	15,058
Long-term debt	US$ in thousands	464,068	464,040	437,410	320,378	184,349	254,224	170,017	247,354	236,005	241,483	276,084	254,447	237,691	—	—	—	454,187	—	—	—
Total stockholders’ equity	US$ in thousands	6,687,470	6,302,380	6,039,640	5,868,730	5,836,060	5,828,340	5,895,830	5,875,180	5,959,550	5,830,080	5,783,640	5,694,780	5,520,930	5,396,110	5,226,800	5,168,620	5,096,770	5,182,480	5,135,120	5,129,160
Return on total capital		12.64%	7.64%	2.53%	1.89%	0.35%	3.19%	4.97%	4.35%	9.45%	7.71%	10.28%	9.51%	5.47%	3.25%	0.42%	-0.51%	-1.68%	1.02%	1.28%	0.29%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $904,255K ÷ ($464,068K + $6,687,470K)
= 12.64%

First Solar Inc's return on total capital has shown varying levels over the past eight quarters. In Q4 of 2023, the return on total capital was notably higher at 12.22% compared to the previous quarters. This suggests a positive trend in the company's ability to generate profits relative to its total capital investment during that period.

Q3 and Q2 of 2023 also reflected positive returns on total capital at 6.60% and 1.57% respectively, indicating a general upward trend during that period. However, the company experienced negative returns in Q1 of 2023 at -3.28%, which may indicate some challenges in generating sufficient profits from its total capital investment.

Looking back to 2022, the trend in return on total capital was less consistent, with negative returns in Q4 and Q3, and positive returns in Q2 and Q1. Overall, the return on total capital has shown improvement since the negative figures in Q4 and Q3 of 2022.

It is important for investors and stakeholders to monitor First Solar Inc's return on total capital closely to assess the company's efficiency in utilizing its capital resources to generate profits. The recent positive trends may indicate improvements in the company's operational and financial performance.