Stock Analysis on Net
Stock Analysis on Net

First Solar Inc. (NASDAQ:FSLR)

This company has been moved to the archive! The financial data has not been updated since October 29, 2024.

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

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 (quarterly data)

Microsoft Excel
ROE = ROA × Financial Leverage
Sep 30, 2024 16.44% = 10.91% × 1.51
Jun 30, 2024 16.59% = 10.93% × 1.52
Mar 31, 2024 14.85% = 9.52% × 1.56
Dec 31, 2023 12.42% = 8.02% × 1.55
Sep 30, 2023 7.52% = 4.95% × 1.52
Jun 30, 2023 2.59% = 1.74% × 1.49
Mar 31, 2023 0.71% = 0.49% × 1.46
Dec 31, 2022 -0.76% = -0.54% × 1.41
Sep 30, 2022 1.63% = 1.26% × 1.29
Jun 30, 2022 3.21% = 2.55% × 1.26
Mar 31, 2022 3.67% = 2.92% × 1.26
Dec 31, 2021 7.86% = 6.32% × 1.24
Sep 30, 2021 7.77% = 6.23% × 1.25
Jun 30, 2021 9.73% = 7.77% × 1.25
Mar 31, 2021 9.08% = 7.28% × 1.25
Dec 31, 2020 7.22% = 5.60% × 1.29
Sep 30, 2020 4.14% = 3.20% × 1.29
Jun 30, 2020 1.89% = 1.40% × 1.35
Mar 31, 2020 0.84% = 0.62% × 1.34
Dec 31, 2019 -2.26% = -1.53% × 1.47
Sep 30, 2019 — = — × 1.36
Jun 30, 2019 — = — × 1.39
Mar 31, 2019 — = — × 1.41

Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the decrease in return on equity ratio (ROE) over Q3 2024 is the decrease in financial leverage ratio.

Three-Component Disaggregation of ROE

First Solar Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Sep 30, 2024 16.44% = 32.41% × 0.34 × 1.51
Jun 30, 2024 16.59% = 31.97% × 0.34 × 1.52
Mar 31, 2024 14.85% = 28.75% × 0.33 × 1.56
Dec 31, 2023 12.42% = 25.03% × 0.32 × 1.55
Sep 30, 2023 7.52% = 14.99% × 0.33 × 1.52
Jun 30, 2023 2.59% = 5.23% × 0.33 × 1.49
Mar 31, 2023 0.71% = 1.49% × 0.33 × 1.46
Dec 31, 2022 -0.76% = -1.69% × 0.32 × 1.41
Sep 30, 2022 1.63% = 3.75% × 0.34 × 1.29
Jun 30, 2022 3.21% = 7.63% × 0.33 × 1.26
Mar 31, 2022 3.67% = 8.68% × 0.34 × 1.26
Dec 31, 2021 7.86% = 16.03% × 0.39 × 1.24
Sep 30, 2021 7.77% = 17.26% × 0.36 × 1.25
Jun 30, 2021 9.73% = 18.96% × 0.41 × 1.25
Mar 31, 2021 9.08% = 17.34% × 0.42 × 1.25
Dec 31, 2020 7.22% = 14.69% × 0.38 × 1.29
Sep 30, 2020 4.14% = 6.38% × 0.50 × 1.29
Jun 30, 2020 1.89% = 3.17% × 0.44 × 1.35
Mar 31, 2020 0.84% = 1.42% × 0.44 × 1.34
Dec 31, 2019 -2.26% = -3.75% × 0.41 × 1.47
Sep 30, 2019 — = — × — × 1.36
Jun 30, 2019 — = — × — × 1.39
Mar 31, 2019 — = — × — × 1.41

Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the decrease in return on equity ratio (ROE) over Q3 2024 is the decrease in efficiency measured by asset turnover ratio.

Five-Component Disaggregation of ROE

First Solar Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Sep 30, 2024 16.44% = 0.93 × 0.97 × 35.62% × 0.34 × 1.51
Jun 30, 2024 16.59% = 0.93 × 0.98 × 35.32% × 0.34 × 1.52
Mar 31, 2024 14.85% = 0.92 × 0.98 × 31.77% × 0.33 × 1.56
Dec 31, 2023 12.42% = 0.93 × 0.99 × 27.25% × 0.32 × 1.55
Sep 30, 2023 7.52% = 0.93 × 0.98 × 16.35% × 0.33 × 1.52
Jun 30, 2023 2.59% = 1.00 × 0.95 × 5.49% × 0.33 × 1.49
Mar 31, 2023 0.71% = 0.39 × 0.91 × 4.18% × 0.33 × 1.46
Dec 31, 2022 -0.76% = -5.14 × 0.41 × 0.79% × 0.32 × 1.41
Sep 30, 2022 1.63% = 0.52 × 0.94 × 7.68% × 0.34 × 1.29
Jun 30, 2022 3.21% = 0.65 × 0.96 × 12.17% × 0.33 × 1.26
Mar 31, 2022 3.67% = 0.85 × 0.95 × 10.70% × 0.34 × 1.26
Dec 31, 2021 7.86% = 0.82 × 0.98 × 20.02% × 0.39 × 1.24
Sep 30, 2021 7.77% = 1.00 × 0.97 × 17.82% × 0.36 × 1.25
Jun 30, 2021 9.73% = 0.94 × 0.97 × 20.98% × 0.41 × 1.25
Mar 31, 2021 9.08% = 0.95 × 0.96 × 18.98% × 0.42 × 1.25
Dec 31, 2020 7.22% = 1.37 × 0.92 × 11.62% × 0.38 × 1.29
Sep 30, 2020 4.14% = 1.47 × 0.86 × 5.01% × 0.50 × 1.29
Jun 30, 2020 1.89% = 24.72 × 0.18 × 0.71% × 0.44 × 1.35
Mar 31, 2020 0.84% = — × — × -0.86% × 0.44 × 1.34
Dec 31, 2019 -2.26% = — × — × -3.05% × 0.41 × 1.47
Sep 30, 2019 — = — × — × — × — × 1.36
Jun 30, 2019 — = — × — × — × — × 1.39
Mar 31, 2019 — = — × — × — × — × 1.41

Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the decrease in return on equity ratio (ROE) over Q3 2024 is the decrease in efficiency measured by asset turnover ratio.

Two-Component Disaggregation of ROA

First Solar Inc., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Sep 30, 2024 10.91% = 32.41% × 0.34
Jun 30, 2024 10.93% = 31.97% × 0.34
Mar 31, 2024 9.52% = 28.75% × 0.33
Dec 31, 2023 8.02% = 25.03% × 0.32
Sep 30, 2023 4.95% = 14.99% × 0.33
Jun 30, 2023 1.74% = 5.23% × 0.33
Mar 31, 2023 0.49% = 1.49% × 0.33
Dec 31, 2022 -0.54% = -1.69% × 0.32
Sep 30, 2022 1.26% = 3.75% × 0.34
Jun 30, 2022 2.55% = 7.63% × 0.33
Mar 31, 2022 2.92% = 8.68% × 0.34
Dec 31, 2021 6.32% = 16.03% × 0.39
Sep 30, 2021 6.23% = 17.26% × 0.36
Jun 30, 2021 7.77% = 18.96% × 0.41
Mar 31, 2021 7.28% = 17.34% × 0.42
Dec 31, 2020 5.60% = 14.69% × 0.38
Sep 30, 2020 3.20% = 6.38% × 0.50
Jun 30, 2020 1.40% = 3.17% × 0.44
Mar 31, 2020 0.62% = 1.42% × 0.44
Dec 31, 2019 -1.53% = -3.75% × 0.41
Sep 30, 2019 — = — × —
Jun 30, 2019 — = — × —
Mar 31, 2019 — = — × —

Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the decrease in return on assets ratio (ROA) over Q3 2024 is the decrease in asset turnover ratio.

Four-Component Disaggregation of ROA

First Solar Inc., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Sep 30, 2024 10.91% = 0.93 × 0.97 × 35.62% × 0.34
Jun 30, 2024 10.93% = 0.93 × 0.98 × 35.32% × 0.34
Mar 31, 2024 9.52% = 0.92 × 0.98 × 31.77% × 0.33
Dec 31, 2023 8.02% = 0.93 × 0.99 × 27.25% × 0.32
Sep 30, 2023 4.95% = 0.93 × 0.98 × 16.35% × 0.33
Jun 30, 2023 1.74% = 1.00 × 0.95 × 5.49% × 0.33
Mar 31, 2023 0.49% = 0.39 × 0.91 × 4.18% × 0.33
Dec 31, 2022 -0.54% = -5.14 × 0.41 × 0.79% × 0.32
Sep 30, 2022 1.26% = 0.52 × 0.94 × 7.68% × 0.34
Jun 30, 2022 2.55% = 0.65 × 0.96 × 12.17% × 0.33
Mar 31, 2022 2.92% = 0.85 × 0.95 × 10.70% × 0.34
Dec 31, 2021 6.32% = 0.82 × 0.98 × 20.02% × 0.39
Sep 30, 2021 6.23% = 1.00 × 0.97 × 17.82% × 0.36
Jun 30, 2021 7.77% = 0.94 × 0.97 × 20.98% × 0.41
Mar 31, 2021 7.28% = 0.95 × 0.96 × 18.98% × 0.42
Dec 31, 2020 5.60% = 1.37 × 0.92 × 11.62% × 0.38
Sep 30, 2020 3.20% = 1.47 × 0.86 × 5.01% × 0.50
Jun 30, 2020 1.40% = 24.72 × 0.18 × 0.71% × 0.44
Mar 31, 2020 0.62% = — × — × -0.86% × 0.44
Dec 31, 2019 -1.53% = — × — × -3.05% × 0.41
Sep 30, 2019 — = — × — × — × —
Jun 30, 2019 — = — × — × — × —
Mar 31, 2019 — = — × — × — × —

Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the decrease in return on assets ratio (ROA) over Q3 2024 is the decrease in efficiency measured by asset turnover ratio.

Disaggregation of Net Profit Margin

First Solar Inc., decomposition of net profit margin ratio (quarterly data)

Microsoft Excel
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Sep 30, 2024 32.41% = 0.93 × 0.97 × 35.62%
Jun 30, 2024 31.97% = 0.93 × 0.98 × 35.32%
Mar 31, 2024 28.75% = 0.92 × 0.98 × 31.77%
Dec 31, 2023 25.03% = 0.93 × 0.99 × 27.25%
Sep 30, 2023 14.99% = 0.93 × 0.98 × 16.35%
Jun 30, 2023 5.23% = 1.00 × 0.95 × 5.49%
Mar 31, 2023 1.49% = 0.39 × 0.91 × 4.18%
Dec 31, 2022 -1.69% = -5.14 × 0.41 × 0.79%
Sep 30, 2022 3.75% = 0.52 × 0.94 × 7.68%
Jun 30, 2022 7.63% = 0.65 × 0.96 × 12.17%
Mar 31, 2022 8.68% = 0.85 × 0.95 × 10.70%
Dec 31, 2021 16.03% = 0.82 × 0.98 × 20.02%
Sep 30, 2021 17.26% = 1.00 × 0.97 × 17.82%
Jun 30, 2021 18.96% = 0.94 × 0.97 × 20.98%
Mar 31, 2021 17.34% = 0.95 × 0.96 × 18.98%
Dec 31, 2020 14.69% = 1.37 × 0.92 × 11.62%
Sep 30, 2020 6.38% = 1.47 × 0.86 × 5.01%
Jun 30, 2020 3.17% = 24.72 × 0.18 × 0.71%
Mar 31, 2020 1.42% = — × — × -0.86%
Dec 31, 2019 -3.75% = — × — × -3.05%
Sep 30, 2019 — = — × — × —
Jun 30, 2019 — = — × — × —
Mar 31, 2019 — = — × — × —

Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the increase in net profit margin ratio over Q3 2024 is the increase in operating profitability measured by EBIT margin ratio.