Stock Analysis on Net
Stock Analysis on Net

First Solar Inc. (NASDAQ:FSLR)

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

First Solar Inc., decomposition of ROE

Microsoft Excel
ROE = ROA × Financial Leverage
Dec 31, 2023 12.42% = 8.02% × 1.55
Dec 31, 2022 -0.76% = -0.54% × 1.41
Dec 31, 2021 7.86% = 6.32% × 1.24
Dec 31, 2020 7.22% = 5.60% × 1.29
Dec 31, 2019 -2.26% = -1.53% × 1.47

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).

Three-Component Disaggregation of ROE

First Solar Inc., decomposition of ROE

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Dec 31, 2023 12.42% = 25.03% × 0.32 × 1.55
Dec 31, 2022 -0.76% = -1.69% × 0.32 × 1.41
Dec 31, 2021 7.86% = 16.03% × 0.39 × 1.24
Dec 31, 2020 7.22% = 14.69% × 0.38 × 1.29
Dec 31, 2019 -2.26% = -3.75% × 0.41 × 1.47

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).

Five-Component Disaggregation of ROE

First Solar Inc., decomposition of ROE

Microsoft Excel
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Dec 31, 2023 12.42% = 0.93 × 0.99 × 27.25% × 0.32 × 1.55
Dec 31, 2022 -0.76% = -5.14 × 0.41 × 0.79% × 0.32 × 1.41
Dec 31, 2021 7.86% = 0.82 × 0.98 × 20.02% × 0.39 × 1.24
Dec 31, 2020 7.22% = 1.37 × 0.92 × 11.62% × 0.38 × 1.29
Dec 31, 2019 -2.26% = — × — × -3.05% × 0.41 × 1.47

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).

Two-Component Disaggregation of ROA

First Solar Inc., decomposition of ROA

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Dec 31, 2023 8.02% = 25.03% × 0.32
Dec 31, 2022 -0.54% = -1.69% × 0.32
Dec 31, 2021 6.32% = 16.03% × 0.39
Dec 31, 2020 5.60% = 14.69% × 0.38
Dec 31, 2019 -1.53% = -3.75% × 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).

Four-Component Disaggregation of ROA

First Solar Inc., decomposition of ROA

Microsoft Excel
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Dec 31, 2023 8.02% = 0.93 × 0.99 × 27.25% × 0.32
Dec 31, 2022 -0.54% = -5.14 × 0.41 × 0.79% × 0.32
Dec 31, 2021 6.32% = 0.82 × 0.98 × 20.02% × 0.39
Dec 31, 2020 5.60% = 1.37 × 0.92 × 11.62% × 0.38
Dec 31, 2019 -1.53% = — × — × -3.05% × 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).

Disaggregation of Net Profit Margin

First Solar Inc., decomposition of net profit margin ratio

Microsoft Excel
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Dec 31, 2023 25.03% = 0.93 × 0.99 × 27.25%
Dec 31, 2022 -1.69% = -5.14 × 0.41 × 0.79%
Dec 31, 2021 16.03% = 0.82 × 0.98 × 20.02%
Dec 31, 2020 14.69% = 1.37 × 0.92 × 11.62%
Dec 31, 2019 -3.75% = — × — × -3.05%

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).