First Solar

2601 WordsMar 14, 201211 Pages
Running head: Capstone Project: First Solar, Inc. Capstone Project: First Solar, Inc. Executive Summary: • Company & Product Overview: o leading manufacturer in photovoltaic solar modules and provider of solar solutions o Solar modules that consist of glass and cadmium telluride when combined convert sun light into electricity o Comprehensive recycling program that salvages old parts and an environmentally friends manufacturing process • Financial Analysis: o An overview of current quarter end and extended ratios o Comparative key financial statistics of First Solar’s direct competitors • External / Internal Environmental Factors: o P.E.S.T. analysis…show more content…
First Solar is renewing their product line 5.6 times a year which suggest that they are generating revenue through high sales volume. “The debt to equity ratio measures the relationship between the amount financed by the creditors of the company and by the owners. If the ratio is greater than 1, then the creditors have a greater claim against the assets than the owners.” (Jeffery Cornwall, 2009) The debt to equity ratio suggest that the company has a larger claim to the assets thus having inside leverage on how the company is run and a secure hold on intellectual property. By not being heavily funded by equity the company does not have to succumb to the voting powers of outside investors and rely on the inner knowledge of the company executives and expertise. Finally the gross profit margins show a healthy 51.8% which allows more money to pay for areas such as R&D, advertisements and other areas to expand the future of the company. When looking at the financial health of a company it is important to look at the extended yearly averages to make sure that the quarterly numbers are not an anomaly or a stretch of months in which that particular industry did well due to certain circumstances. The 5 year numbers show that First Solar had a return on equity of 19.9%, a return on assets of

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