First Solar Inc (FSLR)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,427,246 | 1,264,676 | 1,132,563 | 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 |
| Long-term debt | US$ in thousands | 373,354 | 373,321 | 418,695 | 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 | 7,977,580 | 7,593,650 | 6,902,510 | 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 |
| Return on total capital | 17.09% | 15.87% | 15.47% | 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% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,427,246K ÷ ($373,354K + $7,977,580K)
= 17.09%
First Solar Inc's return on total capital has shown fluctuations over the periods indicated. The company experienced negative returns at the end of 2019 and the beginning of 2020, indicating a decrease in its ability to generate profits from its invested capital. However, there was a gradual improvement in the return on total capital from June 2020 to March 2021, demonstrating the company's enhanced efficiency in utilizing its capital effectively.
The return on total capital peaked at 17.09% at the end of December 31, 2024, indicating that First Solar Inc was able to generate significant profits relative to the total capital employed. This upward trend in the return on total capital suggests the company's improved performance in generating returns for its stakeholders and may indicate a stronger financial position.
Overall, the varying levels of return on total capital reflect the company's operational performance and efficiency in utilizing its capital resources to generate profits. Investors and stakeholders may find this metric useful in assessing the company's financial performance and its ability to generate returns on the capital invested.
Peer comparison
Dec 31, 2024