Income Tax Expense (Benefit)
Effective Income Tax Rate (EITR)
Components of Deferred Tax Assets and Liabilities
Deferred Tax Assets and Liabilities, Classification
Adjustments to Financial Statements: Removal of Deferred Taxes
Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

First Solar Inc., income tax expense (benefit), continuing operations

US$ in thousands

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Federal	44,693)	8,434)	9,531)	(149,162)	9,961)
State	8,285)	399)	3,469)	4,027)	3,890)
Foreign	20,767)	49,984)	10,109)	26,303)	41,080)
Current expense (benefit)	73,745)	58,817)	23,109)	(118,832)	54,931)
Federal	(23,390)	(13,928)	58,510)	12,681)	(55,647)
State	(1,413)	(700)	3,775)	7,591)	(6,737)
Foreign	11,571)	8,575)	18,075)	(8,734)	1,973)
Deferred expense (benefit)	(13,232)	(6,053)	80,360)	11,538)	(60,411)
Income tax expense (benefit)	60,513)	52,764)	103,469)	(107,294)	(5,480)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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Item	Description	The company
Current expense (benefit)	Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations.	First Solar Inc. current expense (benefit) increased from 2021 to 2022 and from 2022 to 2023.
Deferred expense (benefit)	Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations.	First Solar Inc. deferred expense (benefit) decreased from 2021 to 2022 and from 2022 to 2023.
Income tax expense (benefit)	Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	First Solar Inc. income tax expense (benefit) decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.

First Solar Inc., effective income tax rate (EITR) reconciliation

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
U.S. statutory federal corporate income tax rate	21.00%	21.00%	21.00%	21.00%	21.00%
Non-deductible expenses	2.30%	125.30%	0.70%	1.30%	-9.30%
Changes in valuation allowance	1.20%	258.60%	0.50%	-10.80%	4.80%
Foreign dividend income	1.00%	33.20%	0.50%	1.00%	-5.60%
State tax, net of federal benefit	0.60%	8.10%	0.80%	3.80%	3.40%
Foreign tax rate differential	0.10%	-49.10%	0.80%	2.10%	-14.30%
Change in tax contingency	0.00%	50.30%	0.40%	-20.10%	-5.90%
Return to provision adjustments	-0.40%	-20.50%	-0.90%	0.80%	-12.00%
Tax credits	-1.00%	-147.20%	-0.60%	-2.80%	1.70%
Effect of tax holiday	-1.30%	318.90%	-5.70%	-3.90%	22.40%
Share-based compensation	-1.40%	-11.80%	-0.50%	-0.20%	1.30%
Section 45X production credit	-15.50%	0.00%	0.00%	0.00%	0.00%
Other	0.20%	26.90%	1.10%	-28.80%	-2.90%
Effective income tax rate	6.80%	613.70%	18.10%	-36.60%	4.60%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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Item	Description	The company
Effective income tax rate	Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	First Solar Inc. effective income tax rate increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.

First Solar Inc., components of deferred tax assets and liabilities

US$ in thousands

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term contracts	211,974)	23,531)	9,065)	10,813)	11,215)
Net operating losses	119,822)	122,950)	110,979)	110,753)	165,669)
Capitalized research and development	53,146)	32,932)	—)	—)	—)
Inventory	30,787)	1,490)	10,057)	4,587)	4,020)
Accrued expenses	29,503)	28,226)	35,193)	39,458)	134,791)
Compensation	16,451)	13,167)	10,551)	15,806)	22,401)
Tax credits	14,800)	103,260)	86,885)	134,328)	13,127)
Equity in earnings	4,464)	4,172)	4,174)	3,666)	2,906)
Deferred expenses	1,590)	1,735)	1,786)	1,844)	2,177)
Other	28,908)	23,827)	26,028)	33,156)	25,700)
Deferred tax assets, gross	511,445)	355,290)	294,718)	354,411)	382,006)
Valuation allowance	(149,424)	(135,763)	(123,917)	(127,711)	(151,705)
Deferred tax assets, net of valuation allowance	362,021)	219,527)	170,801)	226,700)	230,301)
Property, plant and equipment	(234,394)	(150,477)	(106,361)	(103,324)	(77,794)
Investment in foreign subsidiaries	(6,034)	(5,689)	(15,583)	(21,917)	(5,554)
Acquisition accounting/basis difference	(3,964)	(4,065)	(4,065)	(5,079)	(5,356)
Restricted marketable securities and derivatives	(2,087)	—)	(4,337)	(6,326)	(4,330)
Capitalized interest	(1,294)	(1,331)	(1,338)	(3,097)	(2,199)
Other	(14,200)	(8,214)	(7,654)	(6,529)	(10,790)
Deferred tax liabilities	(261,973)	(169,776)	(139,338)	(146,272)	(106,023)
Net deferred tax assets (liabilities)	100,048)	49,751)	31,463)	80,428)	124,278)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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Item	Description	The company
Deferred tax assets, gross	Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	First Solar Inc. deferred tax assets, gross increased from 2021 to 2022 and from 2022 to 2023.
Deferred tax assets, net of valuation allowance	Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	First Solar Inc. deferred tax assets, net of valuation allowance increased from 2021 to 2022 and from 2022 to 2023.
Net deferred tax assets (liabilities)	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting.	First Solar Inc. net deferred tax assets (liabilities) increased from 2021 to 2022 and from 2022 to 2023.

First Solar Inc., deferred tax assets and liabilities, classification

US$ in thousands

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
	Deferred tax assets, net	142,819)	78,680)	59,162)	104,099)	130,771)
	Deferred tax liabilities, net	42,771)	28,929)	27,699)	23,671)	6,493)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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Item	Description	The company
Deferred tax assets, net	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent.	First Solar Inc. deferred tax assets, net increased from 2021 to 2022 and from 2022 to 2023.
Deferred tax liabilities, net	Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent.	First Solar Inc. deferred tax liabilities, net increased from 2021 to 2022 and from 2022 to 2023.

First Solar Inc., adjustments to financial statements

US$ in thousands

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Adjustment to Total Assets
Total assets (as reported)	10,365,132)	8,251,228)	7,413,746)	7,108,931)	7,515,689)
Less: Noncurrent deferred tax assets, net	142,819)	78,680)	59,162)	104,099)	130,771)
Total assets (adjusted)	10,222,313)	8,172,548)	7,354,584)	7,004,832)	7,384,918)
Adjustment to Total Liabilities
Total liabilities (as reported)	3,677,663)	2,415,173)	1,454,195)	1,588,003)	2,418,922)
Less: Noncurrent deferred tax liabilities, net	42,771)	28,929)	27,699)	23,671)	6,493)
Total liabilities (adjusted)	3,634,892)	2,386,244)	1,426,496)	1,564,332)	2,412,429)
Adjustment to Stockholders’ Equity
Stockholders’ equity (as reported)	6,687,469)	5,836,055)	5,959,551)	5,520,928)	5,096,767)
Less: Net deferred tax assets (liabilities)	100,048)	49,751)	31,463)	80,428)	124,278)
Stockholders’ equity (adjusted)	6,587,421)	5,786,304)	5,928,088)	5,440,500)	4,972,489)
Adjustment to Net Income (loss)
Net income (loss) (as reported)	830,777)	(44,166)	468,693)	398,355)	(114,933)
Add: Deferred income tax expense (benefit)	(13,232)	(6,053)	80,360)	11,538)	(60,411)
Net income (loss) (adjusted)	817,545)	(50,219)	549,053)	409,893)	(175,344)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

First Solar Inc., Financial Data: Reported vs. Adjusted

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First Solar Inc., adjusted financial ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net Profit Margin
Reported net profit margin	25.03%	-1.69%	16.03%	14.69%	-3.75%
Adjusted net profit margin	24.64%	-1.92%	18.78%	15.12%	-5.72%
Total Asset Turnover
Reported total asset turnover	0.32	0.32	0.39	0.38	0.41
Adjusted total asset turnover	0.32	0.32	0.40	0.39	0.41
Financial Leverage
Reported financial leverage	1.55	1.41	1.24	1.29	1.47
Adjusted financial leverage	1.55	1.41	1.24	1.29	1.49
Return on Equity (ROE)
Reported ROE	12.42%	-0.76%	7.86%	7.22%	-2.26%
Adjusted ROE	12.41%	-0.87%	9.26%	7.53%	-3.53%
Return on Assets (ROA)
Reported ROA	8.02%	-0.54%	6.32%	5.60%	-1.53%
Adjusted ROA	8.00%	-0.61%	7.47%	5.85%	-2.37%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Financial ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	First Solar Inc. adjusted net profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	First Solar Inc. adjusted total asset turnover ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	First Solar Inc. adjusted financial leverage ratio increased from 2021 to 2022 and from 2022 to 2023.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	First Solar Inc. adjusted ROE deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	First Solar Inc. adjusted ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

First Solar Inc., Financial Ratios: Reported vs. Adjusted

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	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in thousands)
Net income (loss)	830,777)	(44,166)	468,693)	398,355)	(114,933)
Net sales	3,318,602)	2,619,319)	2,923,377)	2,711,332)	3,063,117)
Profitability Ratio
Net profit margin¹	25.03%	-1.69%	16.03%	14.69%	-3.75%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income (loss)	817,545)	(50,219)	549,053)	409,893)	(175,344)
Net sales	3,318,602)	2,619,319)	2,923,377)	2,711,332)	3,063,117)
Profitability Ratio
Adjusted net profit margin²	24.64%	-1.92%	18.78%	15.12%	-5.72%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ Net profit margin = 100 × Net income (loss) ÷ Net sales
= 100 × 830,777 ÷ 3,318,602 = 25.03%

² Adjusted net profit margin = 100 × Adjusted net income (loss) ÷ Net sales
= 100 × 817,545 ÷ 3,318,602 = 24.64%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	First Solar Inc. adjusted net profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in thousands)
Net sales	3,318,602)	2,619,319)	2,923,377)	2,711,332)	3,063,117)
Total assets	10,365,132)	8,251,228)	7,413,746)	7,108,931)	7,515,689)
Activity Ratio
Total asset turnover¹	0.32	0.32	0.39	0.38	0.41
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Net sales	3,318,602)	2,619,319)	2,923,377)	2,711,332)	3,063,117)
Adjusted total assets	10,222,313)	8,172,548)	7,354,584)	7,004,832)	7,384,918)
Activity Ratio
Adjusted total asset turnover²	0.32	0.32	0.40	0.39	0.41

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ Total asset turnover = Net sales ÷ Total assets
= 3,318,602 ÷ 10,365,132 = 0.32

² Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 3,318,602 ÷ 10,222,313 = 0.32

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	First Solar Inc. adjusted total asset turnover ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in thousands)
Total assets	10,365,132)	8,251,228)	7,413,746)	7,108,931)	7,515,689)
Stockholders’ equity	6,687,469)	5,836,055)	5,959,551)	5,520,928)	5,096,767)
Solvency Ratio
Financial leverage¹	1.55	1.41	1.24	1.29	1.47
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted total assets	10,222,313)	8,172,548)	7,354,584)	7,004,832)	7,384,918)
Adjusted stockholders’ equity	6,587,421)	5,786,304)	5,928,088)	5,440,500)	4,972,489)
Solvency Ratio
Adjusted financial leverage²	1.55	1.41	1.24	1.29	1.49

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ Financial leverage = Total assets ÷ Stockholders’ equity
= 10,365,132 ÷ 6,687,469 = 1.55

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 10,222,313 ÷ 6,587,421 = 1.55

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	First Solar Inc. adjusted financial leverage ratio increased from 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in thousands)
Net income (loss)	830,777)	(44,166)	468,693)	398,355)	(114,933)
Stockholders’ equity	6,687,469)	5,836,055)	5,959,551)	5,520,928)	5,096,767)
Profitability Ratio
ROE¹	12.42%	-0.76%	7.86%	7.22%	-2.26%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income (loss)	817,545)	(50,219)	549,053)	409,893)	(175,344)
Adjusted stockholders’ equity	6,587,421)	5,786,304)	5,928,088)	5,440,500)	4,972,489)
Profitability Ratio
Adjusted ROE²	12.41%	-0.87%	9.26%	7.53%	-3.53%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ ROE = 100 × Net income (loss) ÷ Stockholders’ equity
= 100 × 830,777 ÷ 6,687,469 = 12.42%

² Adjusted ROE = 100 × Adjusted net income (loss) ÷ Adjusted stockholders’ equity
= 100 × 817,545 ÷ 6,587,421 = 12.41%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	First Solar Inc. adjusted ROE deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in thousands)
Net income (loss)	830,777)	(44,166)	468,693)	398,355)	(114,933)
Total assets	10,365,132)	8,251,228)	7,413,746)	7,108,931)	7,515,689)
Profitability Ratio
ROA¹	8.02%	-0.54%	6.32%	5.60%	-1.53%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income (loss)	817,545)	(50,219)	549,053)	409,893)	(175,344)
Adjusted total assets	10,222,313)	8,172,548)	7,354,584)	7,004,832)	7,384,918)
Profitability Ratio
Adjusted ROA²	8.00%	-0.61%	7.47%	5.85%	-2.37%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ ROA = 100 × Net income (loss) ÷ Total assets
= 100 × 830,777 ÷ 10,365,132 = 8.02%

² Adjusted ROA = 100 × Adjusted net income (loss) ÷ Adjusted total assets
= 100 × 817,545 ÷ 10,222,313 = 8.00%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	First Solar Inc. adjusted ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

First Solar Inc. (NASDAQ:FSLR)

Analysis of Income Taxes

Income Tax Expense (Benefit)

Effective Income Tax Rate (EITR)

Components of Deferred Tax Assets and Liabilities

Deferred Tax Assets and Liabilities, Classification

Adjustments to Financial Statements: Removal of Deferred Taxes

First Solar Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

First Solar Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)