What is the ROIC (Return on Invested Capital) for the company “First Solar, Inc.

Question

What is the ROIC (Return on Invested Capital) for the company “First Solar, Inc.” for the years 2007, 2008, 2009, 2010, and 2011. (Show calculation) Attached photos are Income Statement & Balance Sheet. What is the ROIC (Return on Invested Capital) for the company “First Solar, Inc.” for the years 2007, 2008, 2009, 2010, and 2011. (Show calculation) Attached photos are Income Statement & Balance Sheet. FIRST SOLAR Neil Thompson and Jenniter Ballen Exhibit 9 Consolidated Financial Statements for First Solar, SunPower, Suntech, and Yingli Green Energy FIRST SOLAR: INCOME STATEMENT ('000s of USD) 31-Dec-10 2,563,515 29-Dec-07 503,976 27-Dec-08 31-Dec-11 2,766,207 1,794,456 1,378,6691,021,618 567.908 26-Dec-09 Net Sales 1,246,301 Cost of Sales Gross Profit 971,751 1,184,846 1,044 Operating expenses Research and nt 140,523 94,797 78,161 15,107 Selling, general, and 174,039 32,498 82,248 16,867 administrative 272,898 412,541 33,620 393,365 60,366 321,704 13,908 Production start-up Goodwill impairment Total Operating Operating (loss) Income EBIT Margin (%) Foreign currency gain 1,040,415 68,664) 435,943 748,903 29.21% 364,967 679,615 240,054 438,339 35.17% 114,222 137,181 27.22% 995 13,391 5,722 21,158 (509 468 5,207 9,735 1,881 20,413 (2,294) 14,375 Interest income Interest expense, net Other income (expense), net Income (loss) before income taxes Income tax (benefit) expense NET INCOME (LOSS 665 (2.985)9sa 2,273 (934) (53,713) 762,077 686,314 463,776 155,962 46,176 97,876 $664,201 25.91% 115,446 640,138$348,330 27.95% (2,392) ($39,493) $158,354 31.42% Net Margin (%) 30.98% Source: First Solar inc., SEC Form 10K, 2007-2011 As stasted on First Solar's 2011 10K, Geodwill reperesents the excess of the parchase price of scquired business over the estimated fair value assigned to the individal assets acquired and liabilities assumod First Solar does ot amomine goodw ill, ather tests for im

Explanation / Answer

ROIC=Operating income (Loss) / Net Capital Employed (total assets- current liabilities)

Rate of ROIC for 2007= 137,181 / (1,371,312-181,296) = 11.52%

Rate of ROIC FOR 2008= 438,339 / (2,114,502-381,777) = 25.30%

Rate of ROIC FOR 2009= 679,615 / (3,349,512-394,927) = 23%

Rate of ROIC FOR 2010 = 748,903 / (4,380,403-469,677) = 19.15%

Rate of ROIC FOR 20011 = (68,664) / (5,777,614-973,724) = (-1.4%)

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