Capital Budgeting
hazem28
project.xlsx5YR Equity Valuation
| NOTE: Rule of thumb - 20% growth in forecast of 5 years; 80% residual | |||||||
| Select Market Prices and Other Information | Forecast Period Information (Years 1-5) | ||||||
| Last Year's Revenue | $ 3,392,000,000.00 | ||||||
| Shares Outstanding | 100,291,843 | Revenue Growth Rate | 3% then 2% | ||||
| Debt Outstanding (assume book value = market value) | $ 685,003,000.00 | Operating Margin (including depreciation expense) | 18% | ||||
| Cash and Marketable Securities | $ 2,066,000,000.00 | Incremental Investment in Operating Capital | 10% | ||||
| WACC | 6.1% | Tax Rate | 6% | ||||
| Instructions: Calculate the Stock Price based on the given assumptions and under 3 long term growth scenarios | |||||||
| NO GROWTH | FORCAST YEARS | ||||||
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | ||
| Revenue | 3,493,760,000 | 3,598,572,800 | 3,706,529,984 | 3,780,660,584 | 3,856,273,795 | 3,933,399,271 | |
| Costs | 2,864,883,200 | 2,950,829,696 | 3,039,354,587 | 3,100,141,679 | 3,162,144,512 | 3,225,387,402 | |
| EBIT | 628,876,800 | 647,743,104 | 667,175,397 | 680,518,905 | 694,129,283 | 708,011,869 | |
| Taxes | 35,594,427 | 36,662,260 | 37,762,127 | 38,517,370 | 39,287,717 | 40,073,472 | |
| NOPAT | 593,282,373 | 611,080,844 | 629,413,270 | 642,001,535 | 654,841,566 | 667,938,397 | |
| Incremental Investment in Operating Capital | 59,328,237 | 61,108,084 | 62,941,327 | 64,200,154 | 65,484,157 | 0% | Perpetuity Cash Flow (forever and ever cash flows) |
| FCF | 533,954,136 | 549,972,760 | 566,471,943 | 577,801,382 | 589,357,409 | 667,938,397 | 10,956,897,959.88 |
| PV FCF | 503,274,266 | 488,587,912 | 474,330,129 | 456,017,650 | 438,412,162 | 496,867,117 | |
| No Growth Strategy (Year 6 expected growth rate = 0% and WACC = ROIC) | |||||||
| PV of Forecast | 2,360,622,118 | ||||||
| PV of Residual or Terminal Value | 8,150,635,330 | 1) fcf yr 6 (given) 2) perp formula 3) /1+I (wacc) | Perp= (fcf YR 6/wacc-g) | 10,956,897,959.88 | |||
| PV of All Future Cash Flows | 10,511,257,448 | add fcf all 6 years | |||||
| Cash and Marketable Securies | 2,066,000,000 | ||||||
| Corporate Valuation | 12,577,257,448 | ||||||
| Value of Debt | 685,003,000 | ||||||
| Value of Equity Holders | 11,892,254,448 | ||||||
| Value per Equity Share | 118.58 | ||||||
| GROWTH | FORCAST YEARS | ||||||
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | ||
| Revenue | 3,493,760,000 | 3,598,572,800 | 3,706,529,984 | 3,780,660,584 | 3,856,273,795 | 3,933,399,271 | |
| Costs | 2,864,883,200 | 2,950,829,696 | 3,039,354,587 | 3,100,141,679 | 3,162,144,512 | 3,225,387,402 | |
| EBIT | 628,876,800 | 647,743,104 | 667,175,397 | 680,518,905 | 694,129,283 | 708,011,869 | |
| Taxes | 35,594,427 | 36,662,260 | 37,762,127 | 38,517,370 | 39,287,717 | 40,073,472 | |
| NOPAT | 593,282,373 | 611,080,844 | 629,413,270 | 642,001,535 | 654,841,566 | 667,938,397 | |
| Incremental Investment in Operating Capital | 59,328,237 | 61,108,084 | 62,941,327 | 64,200,154 | 65,484,157 | 136,313,958.58 | 8% |
| FCF | 166,860,000 | 171,865,800 | 177,021,774 | 180,562,209 | 184,173,454 | 531,624,438 | |
| PV FCF | 155,218,605 | 148,721,082 | 142,495,548 | 135,205,078 | 128,287,609 | 145,392,624 | |
| Growth Strategy (Year 6 expected growth rate = 2% and ROIC = 9.8%) | |||||||
| PV of Forecast | 709,927,921 | ||||||
| PV of Residual or Terminal Value | 9,654,796,576 | 1) fcf yr 6 (given) 2) perp formula 3) /1+I (wacc) | Perp= (fcf YR 6/wacc-g) | 12,978,941,717 | |||
| PV of All Future Cash Flows | 10,364,724,497 | add fcf all 6 years | |||||
| Cash and Marketable Securies | 2,066,000,000 | ||||||
| Corporate Value | 12,430,724,497 | ||||||
| Value of Debt | 685,003,000 | ||||||
| Value of Equity Holders | 11,745,721,497 | ||||||
| Value per Equity Share | 117.12 | ||||||
10YR Equity Valuation
| NOTE: Rule of thumb - 20% growth in forecast of 5 years; 80% residual | ||||||||||||
| Select Market Prices and Other Information | Forecast Period Information (Years 1-5) | |||||||||||
| Last Year's Revenue | $ 3,392,000,000.00 | |||||||||||
| Shares Outstanding | 100,291,843 | Revenue Growth Rate | 3% then 2% | |||||||||
| Debt Outstanding (assume book value = market value) | $ 685,003,000.00 | Operating Margin (including depreciation expense) | 18% | |||||||||
| Cash and Marketable Securities | $ 2,066,000,000.00 | Incremental Investment in Operating Capital | 10% | |||||||||
| WACC | 6.1% | Tax Rate | 6% | |||||||||
| Instructions: Calculate the Stock Price based on the given assumptions and under 3 long term growth scenarios | ||||||||||||
| NO GROWTH | FORCAST YEARS | |||||||||||
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 | Year 11 | ||
| Revenue | $ 3,493,760,000.00 | $ 3,598,572,800.00 | $ 3,706,529,984.00 | $ 3,780,660,583.68 | $ 3,856,273,795.35 | $ 3,933,399,271.26 | $ 4,012,067,256.69 | $ 4,092,308,601.82 | $ 4,174,154,773.86 | $ 4,257,637,869.33 | $ 4,342,790,626.72 | |
| Costs | $ 2,864,883,200.00 | $ 2,950,829,696.00 | $ 3,039,354,586.88 | $ 3,100,141,678.62 | $ 3,162,144,512.19 | $ 3,225,387,402.43 | $ 3,289,895,150.48 | $ 3,355,693,053.49 | $ 3,422,806,914.56 | $ 3,491,263,052.85 | $ 3,561,088,313.91 | |
| EBIT | $ 628,876,800.00 | $ 647,743,104.00 | $ 667,175,397.12 | $ 680,518,905.06 | $ 694,129,283.16 | $ 708,011,868.83 | $ 722,172,106.20 | $ 736,615,548.33 | $ 751,347,859.29 | $ 766,374,816.48 | $ 781,702,312.81 | |
| Taxes | $ 35,594,426.88 | $ 36,662,259.69 | $ 37,762,127.48 | $ 38,517,370.03 | $ 39,287,717.43 | $ 40,073,471.78 | $ 40,874,941.21 | $ 41,692,440.04 | $ 42,526,288.84 | $ 43,376,814.61 | $ 44,244,350.91 | |
| NOPAT | $ 593,282,373.12 | $ 611,080,844.31 | $ 629,413,269.64 | $ 642,001,535.04 | $ 654,841,565.74 | $ 667,938,397.05 | $ 681,297,164.99 | $ 694,923,108.29 | $ 708,821,570.46 | $ 722,998,001.87 | $ 737,457,961.90 | |
| Incremental Investment in Operating Capital | $ 59,328,237.31 | $ 61,108,084.43 | $ 62,941,326.96 | $ 64,200,153.50 | $ 65,484,156.57 | $ 66,793,839.71 | $ 68,129,716.50 | $ 69,492,310.83 | $ 70,882,157.05 | $ 72,299,800.19 | $ - 0 | Perpetuity Cash Flow (forever and ever cash flows) |
| FCF | $ 533,954,135.81 | $ 549,972,759.88 | $ 566,471,942.68 | $ 577,801,381.53 | $ 589,357,409.16 | $ 601,144,557.35 | $ 613,167,448.49 | $ 625,430,797.46 | $ 637,939,413.41 | $ 650,698,201.68 | $ 737,457,961.90 | 12,097,300,700.13 |
| PV FCF | $ 503,274,265.69 | $ 488,587,911.59 | $ 474,330,128.98 | $ 456,017,650.16 | $ 438,412,161.81 | $ 421,486,369.12 | $ 405,214,031.07 | $ 389,569,919.70 | $ 374,529,781.06 | $ 360,070,297.54 | $ 408,079,670.54 | |
| No Growth Strategy (Year 6 expected growth rate = 0% and WACC = ROIC) | ||||||||||||
| PV of Forecast | 4,311,492,517 | |||||||||||
| PV of Residual or Terminal Value | 6,694,161,212 | 1) fcf yr 6 (given) 2) perp formula 3) /1+I (wacc) | Perp= (fcf YR 6/wacc-g) | 12,097,300,700.13 | ||||||||
| PV of All Future Cash Flows | 11,005,653,729 | add fcf all 6 years | ||||||||||
| Cash and Marketable Securies | 2,066,000,000 | |||||||||||
| Corporate Valuation | 13,071,653,729 | |||||||||||
| Value of Debt | 685,003,000 | |||||||||||
| Value of Equity Holders | 12,386,650,729 | |||||||||||
| Value per Equity Share | 123.51 | |||||||||||
| Growth Strategy (Year 6 expected growth rate = 2% and ROIC = 9.8%) | FORCAST YEARS | |||||||||||
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 | Year 11 | ||
| Revenue | $ 3,493,760,000.00 | $ 3,598,572,800.00 | $ 3,706,529,984.00 | $ 3,780,660,583.68 | $ 3,856,273,795.35 | $ 3,933,399,271.26 | $ 4,012,067,256.69 | $ 4,092,308,601.82 | $ 4,174,154,773.86 | $ 4,257,637,869.33 | $ 4,342,790,626.72 | |
| Costs | $ 2,864,883,200.00 | $ 2,950,829,696.00 | $ 3,039,354,586.88 | $ 3,100,141,678.62 | $ 3,162,144,512.19 | $ 3,225,387,402.43 | $ 3,289,895,150.48 | $ 3,355,693,053.49 | $ 3,422,806,914.56 | $ 3,491,263,052.85 | $ 3,561,088,313.91 | |
| EBIT | $ 628,876,800.00 | $ 647,743,104.00 | $ 667,175,397.12 | $ 680,518,905.06 | $ 694,129,283.16 | $ 708,011,868.83 | $ 722,172,106.20 | $ 736,615,548.33 | $ 751,347,859.29 | $ 766,374,816.48 | $ 781,702,312.81 | |
| Taxes | $ 35,594,426.88 | $ 36,662,259.69 | $ 37,762,127.48 | $ 38,517,370.03 | $ 39,287,717.43 | $ 40,073,471.78 | $ 40,874,941.21 | $ 41,692,440.04 | $ 42,526,288.84 | $ 43,376,814.61 | $ 44,244,350.91 | |
| NOPAT | $ 593,282,373.12 | $ 611,080,844.31 | $ 629,413,269.64 | $ 642,001,535.04 | $ 654,841,565.74 | $ 667,938,397.05 | $ 681,297,164.99 | $ 694,923,108.29 | $ 708,821,570.46 | $ 722,998,001.87 | $ 737,457,961.90 | |
| Incremental Investment in Operating Capital | $ 59,328,237.31 | $ 61,108,084.43 | $ 62,941,326.96 | $ 64,200,153.50 | $ 65,484,156.57 | $ 66,793,839.71 | $ 68,129,716.50 | $ 69,492,310.83 | $ 70,882,157.05 | $ 72,299,800.19 | $ 150,501,624.88 | |
| FCF | $ 533,954,135.81 | $ 549,972,759.88 | $ 566,471,942.68 | $ 577,801,381.53 | $ 589,357,409.16 | $ 601,144,557.35 | $ 613,167,448.49 | $ 625,430,797.46 | $ 637,939,413.41 | $ 650,698,201.68 | $ 586,956,337.03 | |
| PV FCF | $ 503,274,265.69 | $ 488,587,911.59 | $ 474,330,128.98 | $ 456,017,650.16 | $ 438,412,161.81 | $ 421,486,369.12 | $ 405,214,031.07 | $ 389,569,919.70 | $ 374,529,781.06 | $ 360,070,297.54 | $ 324,798,105.13 | |
| Growth Strategy (Year 6 expected growth rate = 2% and ROIC = 9.8%) | ||||||||||||
| PV of Forecast | 4,311,492,517 | |||||||||||
| PV of Residual or Terminal Value | 7,929,537,040 | 1) fcf yr 6 (given) 2) perp formula 3) /1+I (wacc) | Perp= (fcf YR 6/wacc-g) | 14,329,800,395 | ||||||||
| PV of All Future Cash Flows | 12,241,029,556 | add fcf all 6 years | ||||||||||
| Cash and Marketable Securies | 2,066,000,000 | |||||||||||
| Corporate Value | 14,307,029,556 | |||||||||||
| Value of Debt | 685,003,000 | |||||||||||
| Value of Equity Holders | 13,622,026,556 | |||||||||||
| Value per Equity Share | 135.82 | |||||||||||
Historical Free Cash Flows
| First Solar | 2014 | 2013 | 2012 | 2011 | 2010 | 2014 Tax Rate | 2013 Tax Rate | 2012 Tax Rate | 2011 | 2010 | |
| Net sales | $ 3,392.00 | $ 3,396.00 | $ 3,898.00 | $ 3,430.00 | $ 2,577.00 | 5.66% | 10.11% | 9.03% | 23.70% | 20.47% | |
| Costs of goods sold except depreciation | $ 2,317.00 | $ 2,207.00 | $ 2,211.00 | $ 1,398.00 | $ 1,228.00 | 5.66% | |||||
| Other operating expenses | $ 403.00 | $ 407.00 | $ 405.00 | $ 541.00 | $ 423.00 | NOTES | |||||
| EBITDA | $ 672.00 | $ 782.00 | $ 1,282.00 | $ 1,491.00 | $ 926.00 | chang in working capital ex cash | |||||
| Depreciation and amortization | $ 248.00 | $ 239.00 | $ 265.00 | $ 232.00 | $ 151.00 | change fixed asset | |||||
| EBIT | $ 424.00 | $ 543.00 | $ 1,017.00 | $ 1,259.00 | $ 775.00 | add back depreciation | |||||
| NOPAT | $ 400.00 | $ 488.10 | $ 925.11 | $ 960.65 | $ 616.34 | NOPAT is the amount of profit a company would generate if it had no debt and held no financial assets. | |||||
| NOWC | $ 1,734.00 | $ 1,925.00 | $ 1,503.00 | $ 1,397.00 | $ 947.00 | NOPAT = EBIT × ( 1 - Tax Rate) | |||||
| TNOWC | $ 4,317.00 | $ 4,251.00 | $ 3,832.00 | $ 3,831.00 | $ 2,741.00 | ||||||
| Net Investment Operating Capital | $ 66.00 | $ 419.00 | $ 1.00 | $ 1,090.00 | $ 2,741.00 | NOWC = Operating Current Assets - Operating Current Liabilities | |||||
| Free Cash Flow | $ 334.00 | $ 69.10 | $ 924.11 | $ (129.35) | $ (2,124.66) | Note: | |||||
| Operating Margin | 13% | 16% | 26% | 37% | Operating Current Assets and Liabilities are used to support company's operating activities | ||||||
| Revenue Increase | -0.12% | -12.88% | 13.64% | 33.10% | Basic Rule of thumb: | ||||||
| Reinvestment Rate | -84.25% | 41800.00% | -99.91% | 39.77% | If a current assest earns interest, assume it is a non-operating current asset | ||||||
| If a current liabity charges interest, assume it is a non-operating current liability | |||||||||||
| Total Funds Provided by Investors | NOWC= | Cash and equivalents | - | Accounts payable | |||||||
| Notes payable | $ - 0 | $ - 0 | $ - 0 | Accounts receivable | Accruals | ||||||
| Long-term bonds | $ 165.00 | $ 163.00 | $ 500.00 | Inventories | |||||||
| Preferred stock | $ - 0 | $ - 0 | $ - 0 | TNOC = NOWC + Net Plant and Equipment | |||||||
| Total common equity | $ 5,027.00 | $ 4,503.00 | $ 3,606.00 | ||||||||
| Total investor supplied funds | $ 5,192.00 | $ 4,666.00 | $ 4,106.00 | ||||||||
| Total Funds Provided by Investors for Operations | |||||||||||
| Total investor supplied funds | $ 5,192.00 | $ 4,666.00 | $ 4,106.00 | ||||||||
| Less short-term investments | $ 584.00 | $ 439.00 | $ 108.00 | ||||||||
| Total investor supplied funds for operations | $ 4,608.00 | $ 4,227.00 | $ 3,998.00 | ||||||||
| -0.12% | -13% | 14% |
ROIC
| In Millions $ | ||||
| Year | 2014 | 2013 | 2012 | |
| Revenue | $ 3,392.00 | $ 3,309.00 | $ 3,369.00 | $ 2,766.00 |
| Operating Margin | 12.50% | 13.75% | 14.46% | 21.51% |
| EBIT | $ 424.00 | $ 455.00 | $ 487.00 | $ 595.00 |
| Implied tax Rate: | ||||
| Taxes | $ 24.00 | $ 46.00 | $ 44.00 | $ 141.00 |
| EBT | $ 427.00 | $ 378.00 | $ (40.00) Williams, Jason: Williams, Jason: Add back in 1 time expense--at revenue level | $ (54.00) |
| Tax Rate | 5.66% | 10.11% | 9.03% | 24% |
| Implied Taxes | $ 24.00 | $ 46.00 | $ 44.00 | $ 141.00 |
| NOPAT | $ 400.00 | $ 409.00 | $ 443.00 | $ 736.00 |
| Invested Assets | ||||
| 2014 | 2013 | 2012 | 2011 | |
| AR | $ 225.00 | $ 658.00 | $ 972.00 | $ 844.00 |
| Inventory | $ 630.00 | $ 523.00 | $ 534.00 | $ 530.00 |
| Other current Asset | $ 270.00 | $ 848.00 | $ 317.00 | $ 568.00 |
| Net PPE | $ 1,449.00 | $ 1,385.00 | $ 1,525.00 | $ 1,816.00 |
| Intangibles | ||||
| Goodwill | $ 85.00 | $ 85.00 | $ 65.00 | $ 65.00 |
| AP | $ 215.00 | $ 261.00 | $ 350.00 | $ 176.00 |
| Accrual | $ 388.00 | $ 320.00 | $ 554.00 | $ 407.00 |
| Invested Assets | $ 3,262.00 | $ 4,080.00 | $ 4,317.00 | $ 4,406.00 |
| ROIC | ||||
| ROIC using Beg. Invested Assets | 2014 | 2013 | 2012 | |
| NOPAT | 400 | 409 | 443 | |
| Invested Assets | 4,080 | 4,317 | 4,406 | |
| ROIC (Beg Invested Assets) | 9.8% | 9.5% | 10.1% | |
| ROIC using Avg Invested Assets | 2012 | 2011 | 2010 | |
| NOPAT | 400 | 409 | 44 | |
| Invested Assets - Beg | 4,080 | 4,317 | 4,406 | |
| Invested Assets - End | 3,262 | 4,080 | 4,317 | |
| Invested Assets - Avg | 3,671 | 4,199 | 4,362 | |
| ROIC (Avg Invested Assets) | 10.9% | 9.7% | 1.0% |
WACC
| WACC | 6.1% | Share Outstanding | 10 YR Treas | Credit Rating | Default Risk Prem | Debt Liquidity Risk Premium | Stock Price | Equity Beta | Equity market Risk Premium | |
| 100,291,843.00 | 2.10% | AA | 3.25% | 0% | $61 | 2.14 | 5% | |||
| Calculation | ||||||||||
| Income Statement (most recent) | Balance Sheet (assume book value of debt if market value debt) | |||||||||
| Capital Structure | Decimal | EBIT | $424,000,000.00 | Liabilities | ||||||
| % Debt | 10.06% | 0.0010 | Interest Exp. | $10,000,000.00 | Current Liabilities | |||||
| % Equity | 89.94% | 0.7500 | EBT | $427,000,000.00 | Accts Payable | |||||
| Taxes | $24,000,000.00 | Accrued Liabilities | ||||||||
| Tax Rate | 5.66% | Earnings After Taxes | $400,000,000.00 | Current Portion of LT Debt | $520,000,000.00 | |||||
| Cost of Debt | 5.35% | 0.0005 | Total Current Liabilities | $520,000,000.00 | ||||||
| Cost of Equity | 12.80% | 0.0013 | Equity | Debt + Equity | Non-Current Liabilities | |||||
| 1-Tax Rate | 94.34% | 0.0600 | $6,123,819,934 | $6,808,822,933.58 | Long Term Debt | $165,003,000.00 | ||||
| WACC | 6.0961% | Total Liabilities | $685,003,000.00 | |||||||
| Cash & marketable Sec. | 2066000000 | |||||||||
Balance Sheet
| Assets | |||||
| All numbers in millions of US Dollars | |||||
| 2014 (12/31/14) | 2013 (12/31/13) | 2012 (12/31/12) | 2011 (12/31/11) | 2010 (12/31/10) | |
| Current Assets | |||||
| Cash and Short-Term Investments – Total | 2,066 | 1,764 | 1,009 | 672 | 934 |
| Cash | 1,482 | 1,325 | 901 | 606 | 766 |
| Short-Term Investments | 584 | 439 | 108 | 66 | 168 |
| Receivables – Total | 225 | 658 | 972 | 844 | 307 |
| Receivables – Trade | 212 | 658 | 955 | 844 | 307 |
| Income Tax Refund | 0 | 0 | 0 | 0 | 0 |
| Receivables – Current – Other | 12 | 0 | 18 | 0 | 0 |
| Key Component | |||||
| Receivables – Net Est. Doubtful | 7 | 12 | 42 | 10 | 0 |
| Inventories – Total | 630 | 523 | 534 | 530 | 200 |
| Inventories – Raw Materials | -- | -- | -- | -- | -- |
| Inventories – Work in Progress | -- | -- | -- | -- | -- |
| Inventories – Finished Goods | -- | -- | -- | -- | -- |
| Inventories – Other | -- | -- | -- | -- | -- |
| Current Assets – Other – Total | 270 | 848 | 317 | 568 | 143 |
| Prepaid Expenses and Accrued Income | 42 | 25 | 40 | 152 | 46 |
| Current Assets – Other(Sundry) | 227 | 824 | 278 | 416 | 97 |
| Current Assets Total | 3,190 | 3,793 | 2,832 | 2,613 | 1,584 |
| Non-Current Assets | |||||
| Property Plant and Equipment – Total (Net) | 1,449 | 1,385 | 1,525 | 1,816 | 1,431 |
| Property Plant and Equipment – Total (Gross) | 2,583 | 2,326 | 2,329 | 2,434 | 1,794 |
| Depreciation, Depletion and Amortization (Accumulated) | 1,134 | 941 | 804 | 618 | 363 |
| Investment and Advances – Equity | 250 | 12 | 0 | 0 | 0 |
| Investment and Advances – Other | 31 | 22 | 9 | 125 | 190 |
| Intangible Assets – Total | 204 | 202 | 69 | 68 | 434 |
| Key Component | |||||
| Goodwill | 85 | 85 | 65 | 65 | 433 |
| Non-Current Assets – Other – Total | 1,600 | 1,469 | 1,913 | 1,155 | 742 |
| Deferred Charges | -- | -- | -- | -- | -- |
| Assets – Other (Sundry) | 1,600 | 1,469 | 1,913 | 1,155 | 742 |
| Non–Current Assets Total | 3,534 | 3,091 | 3,516 | 3,164 | 2,796 |
| ASSETS TOTAL | 6,724 | 6,884 | 6,349 | 5,778 | 4,380 |
| Liabilities and Shareholders' Equity | |||||
| All numbers in millions of US Dollars | |||||
| 2014 (12/31/14) | 2013 (12/31/13) | 2012 (12/31/12) | 2011 (12/31/11) | 2010 (12/31/10) | |
| Liabilites | |||||
| Current Liabilities | |||||
| Debt in Current Liabilities | 52 | 61 | 62 | 45 | 27 |
| Long-Term Debt Due in One Year | 52 | 61 | 62 | 45 | 27 |
| Notes Payable (Short-Term Borrowings) | 0 | 0 | 0 | 0 | 0 |
| Account Payable/Creditors – Trade | 215 | 261 | 350 | 176 | 82 |
| Income Taxes Payable | 2 | 7 | 5 | 10 | 17 |
| Current Liabilities – Other | 733 | 1,259 | 683 | 743 | 344 |
| Accrued Expenses | 388 | 320 | 554 | 407 | 244 |
| Current Liabilities – Other (Sundry) | 345 | 939 | 129 | 337 | 100 |
| Current Liabilities Total | 1,001 | 1,588 | 1,101 | 974 | 470 |
| Long–Term Liabilities | |||||
| Long-Term Debt Total | 165 | 163 | 500 | 619 | 211 |
| Deferred Taxes and Investment Tax Credit | -- | 10 | 16 | 20 | 18 |
| Deferred Taxes – Balance Sheet | -- | -- | -- | -- | -- |
| Investment Tax Credit – Balance Sheet | 0 | 0 | 0 | 0 | 0 |
| Liabilities (Other) | 531 | 619 | 1,125 | 521 | 227 |
| Long-Term Liabilities Total | 696 | 792 | 1,642 | 1,160 | 456 |
| Liabilities Total | 1,697 | 2,380 | 2,743 | 2,134 | 925 |
| Minority Interest – Balance Sheet | 0 | 0 | 0 | 0 | 0 |
| Shareholders' Equity | |||||
| Preferred/Preference Stock (Capital) – Total | 0 | 0 | 0 | 0 | 0 |
| Redeemable | 0 | 0 | 0 | 0 | 0 |
| Nonredeemable | 0 | 0 | 0 | 0 | 0 |
| Key Component | |||||
| Preferred Stock–Convertible | 0 | 0 | 0 | 0 | 0 |
| Common/Ordinary Equity – Total | 5,027 | 4,503 | 3,606 | 3,644 | 3,455 |
| Common/Ordinary Stock (Capital) | 0 | 0 | 0 | 0 | 0 |
| Capital Surplus/Share Premium Reserve | 2,698 | 2,646 | 2,066 | 2,023 | 1,815 |
| Retained Earnings | 2,330 | 1,857 | 1,540 | 1,621 | 1,639 |
| Treasury Stock – Total (All Capital) | 0 | 0 | 0 | 0 | 0 |
| Shareholders' Equity Total | 5,027 | 4,503 | 3,606 | 3,644 | 3,455 |
| LIABILITIES AND SHAREHOLDERS' EQUITY TOTAL | 6,724 | 6,884 | 6,349 | 5,778 | 4,380 |
| SupplementalLiabilities Data | |||||
| All numbers in millions of US Dollars | |||||
| 2014 (12/31/14) | 2013 (12/31/13) | 2012 (12/31/12) | 2011 (12/31/11) | 2010 (12/31/10) | |
| LIFO Reserve | 0 | 0 | 0 | 0 | 0 |
| Working Capital (Balance Sheet) | 2,189 | 2,205 | 1,731 | 1,640 | 1,115 |
| Invested Capital Total | 5,192 | 4,666 | 4,106 | 4,263 | 3,666 |
| Common Equity (Tangible) | 4,823 | 4,301 | 3,536 | 3,576 | 3,021 |
| Convertible Debt and Preferred Stock | 0 | 0 | 0 | 0 | 0 |
| Preferred Dividends in Arrears | 0 | 0 | 0 | 0 | 0 |
| Common Shares Outstanding | 100,289,000 | 99,507,000 | 87,145,000 | 86,468,000 | 85,844,000 |
Income Statement
| Net Income | |||||
| All numbers in millions of US Dollars | |||||
| 2014 (12/31/14) | 2013 (12/31/13) | 2012 (12/31/12) | 2011 (12/31/11) | 2010 (12/31/10) | |
| Sales/Turnover (Net) | 3,392 | 3,309 | 3,369 | 2,766 | 2,564 |
| Key Component | |||||
| Net of Excise Taxes | 0 | 0 | 0 | 0 | 0 |
| Operating Expenses – Total | 2,720 | 2,615 | 2,616 | 1,939 | 1,651 |
| Cost of Goods Sold | 2,317 | 2,207 | 2,211 | 1,398 | 1,228 |
| Gross Profit (Loss) | 1,075 | 1,102 | 1,158 | 1,368 | 1,335 |
| Selling, General and Administrative Expenses | 403 | 407 | 405 | 541 | 423 |
| Key Components | |||||
| Research and Development Expense | 144 | 134 | 132 | 141 | 95 |
| Staff Expense – Total | -- | -- | -- | -- | -- |
| Pension Expense | -- | -- | -- | -- | -- |
| Rental Expense | 18 | 14 | 19 | 16 | 16 |
| Advertising Expense | 3 | 2 | 1 | 2 | 1 |
| Operating Income Before Depreciation | 672 | 694 | 752 | 828 | 912 |
| Depreciation and Amortization – Total | 248 | 239 | 265 | 232 | 151 |
| Key Component | |||||
| Amortization of Intangibles | 1 | 1 | 2 | 2 | 0 |
| Operating Income After Depreciation | 424 | 455 | 487 | 595 | 762 |
| Interest and Related Expense | 10 | 12 | 20 | 15 | 10 |
| Key Component | |||||
| Net of Interest Capitalized | 8 | 10 | 10 | 15 | 10 |
| Non–operating Income (Expense) – Total | 13 | 21 | 22 | 30 | 23 |
| Key Component | |||||
| Interest Income – Total | 18 | 17 | 13 | 13 | 14 |
| Special Items Income (Expense) | 0 | -87 | -529 | -664 | -13 |
| Pretax Income | 427 | 378 | -40 | -54 | 762 |
| Expense (Credit) | |||||
| Key Components | |||||
| Domestic | 139 | 76 | 97 | -367 | 44 |
| Foreign | 293 | 302 | -137 | 313 | 718 |
| Income Taxes Expense (Credit) | -- | -- | -- | -- | -- |
| Income Taxes – Current | 24 | 46 | 44 | 141 | 156 |
| Federal | 16 | 44 | 38 | 113 | 93 |
| State | 2 | 1 | -1 | 5 | 1 |
| Foreign | 7 | 1 | 7 | 23 | 62 |
| Other | 0 | 0 | 0 | 0 | 0 |
| Income Taxes – Deferred | 6 | -21 | 13 | -156 | -58 |
| Federal | 3 | -12 | 7 | -140 | -56 |
| State | 5 | 2 | -3 | -8 | -5 |
| Foreign | -2 | -11 | 9 | -7 | 3 |
| Minority Interest – Income Account | 0 | 0 | 0 | 0 | 0 |
| Income Before Extraordinary Items | 397 | 353 | -96 | -39 | 664 |
| Dividends – Preferred/Preference | 0 | 0 | 0 | 0 | 0 |
| Income Before Extraordinary Items – | 397 | 353 | -96 | -39 | 664 |
| Available for Common | |||||
| Common Stock Equivalents – Dollar Savings | 0 | 0 | 0 | 0 | 0 |
| Income Before Extraordinary Items – | 397 | 353 | -96 | -39 | 664 |
| Adjusted for Common Stock Equivalents | |||||
| Extraordinary Items and Discontinued Operations Credit (Expense) | 0 | 0 | 0 | 0 | 0 |
| Extraordinary Items | 0 | 0 | 0 | 0 | 0 |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 |
| NET INCOME (LOSS) | 397 | 353 | -96 | -39 | 664 |
| SupplementalNet Income Data | |||||
| Acquisitions – Income Contribution | -- | -- | -- | -- | -- |
| Acquisitions – Sales Contribution | -- | -- | -- | -- | -- |
| Earnings Before Interest and Taxes | 424 | 455 | 487 | 595 | 762 |
| Earnings Before Interest | 672 | 694 | 752 | 828 | 912 |
| Net Income Effect Capitalized Interest | -- | -- | -- | -- | -- |
| Goodwill Amortization | -- | -- | -- | -- | -- |
| Implied Option Expense | 0 | 0 | 0 | 0 | 0 |
| Intrest Expense on Long-term Debt | -- | -- | -- | -- | -- |
| Stock Compensation Expense | 44 | 55 | 37 | 114 | 100 |
| Equity in Earnings – Unconsolidated Subsidiaries | -5 | -- | 0 | 0 | 0 |
| Rental Income | -- | -- | -- | -- | -- |
| For Financial Services Companies | |||||
| Interest Expense – Total | -- | -- | -- | -- | -- |
| Interest Income – Total | -- | -- | -- | -- | -- |
| Provision for Loan/Asset Losses | -- | -- | -- | -- | -- |
| Earnings Per Share | |||||
| All numbers in US Dollars (excluding shares) | |||||
| 2014 (12/31/14) | 2013 (12/31/13) | 2012 (12/31/12) | 2011 (12/31/11) | 2010 (12/31/10) | |
| Earnings per Share – Basic Excluding Extraordinary Items | 3.97 | 3.77 | -1.11 | -0.46 | 7.82 |
| Earnings per Share – Basic Including Extraordinary Items | 3.97 | 3.77 | -1.11 | -0.46 | 7.82 |
| Earnings per Share – Diluted Excluding Extraordinary Items | 3.91 | 3.7 | -1.11 | -0.46 | 7.68 |
| Earnings per Share – Diluted Including Extraordinary Items | 3.91 | 3.7 | -1.11 | -0.46 | 7.68 |
| Earnings per Share from Operations – Basic | 3.71 | 4.44 | 4.95 | 6 | 8.08 |
| Earnings per Share from Operations – Diluted | 3.65 | 4.36 | 4.9 | 6 | 7.94 |
| Dilution Adjustment | 0 | 0 | 0 | 0 | 0 |
| Common Shares used to Calculate EPS – Basic | 100 | 94 | 87 | 86 | 85 |
| Common Shares used to Calculate EPS – Diluted | 102 | 95 | 87 | 86 | 86 |
| Dividends Common/Ordinary | 0 | 0 | 0 | 0 | 0 |
Cash Flows
| Operating Activities | |||||
| All numbers in millions of US Dollars | |||||
| 2014 (12/31/14) | 2013 (12/31/13) | 2012 (12/31/12) | 2011 (12/31/11) | 2010 (12/31/10) | |
| Income Before Extraordinary Items | 397 | 353 | -96 | -39 | 664 |
| Extraordinary Items and Discontinued Operations | 0 | 0 | 0 | 0 | 0 |
| Depreciation and Amortization | 246 | 234 | 263 | 235 | 156 |
| Deferred Taxes | 14 | -21 | 15 | -156 | -58 |
| Equity in Net – Loss (Earnings) | -- | -- | 0 | 0 | 0 |
| Sale of PP&E and Investments – Loss (Gain) | 0 | 0 | 0 | -5 | -4 |
| Funds from Operations – Other | 33 | 103 | 378 | 468 | 39 |
| Accounts Receivable – Decrease (Increase) | 454 | 565 | -388 | -530 | -92 |
| Inventory – Decrease (Increase) | -100 | 15 | -76 | -348 | -70 |
| Accounts Payable and Accrued Liabilites – Increase (Decrease) | -- | -- | -- | -- | -- |
| Income Taxes – Accrued – Increase (Decrease) | -1 | 36 | 63 | 95 | -- |
| Assets and Liabilities – Other (Net Change) | -362 | -430 | 604 | 246 | 69 |
| OPERATING ACTIVITIES - NET CASH FLOW | 681 | 856 | 762 | -33 | 705 |
| Investing Activities | |||||
| All numbers in millions of US Dollars | |||||
| 2014 (12/31/14) | 2013 (12/31/13) | 2012 (12/31/12) | 2011 (12/31/11) | 2010 (12/31/10) | |
| Investments – Increase (Decrease) | 98 | 18 | 29 | 331 | 462 |
| Sale of Investments | 50 | 0 | 109 | 493 | 647 |
| Short-Term Investments – Increase (Decrease) | -77 | -341 | -- | -- | -- |
| Capital Expenditures | 258 | 283 | 379 | 732 | 589 |
| Sale of Property, Plant & Equiptment | 2 | 116 | 0 | 0 | 0 |
| Acquisitions | 4 | 31 | 2 | 21 | 296 |
| Investing Activities – Other | -126 | 19 | -82 | -85 | -42 |
| INVESTING ACTIVITIES – NET CASH FLOW | -512 | -537 | -384 | -676 | -742 |
| Financing Activities | |||||
| All numbers in millions of US Dollars | |||||
| 2014 (12/31/14) | 2013 (12/31/13) | 2012 (12/31/12) | 2011 (12/31/11) | 2010 (12/31/10) | |
| Common and Preferred Stock – Sale | 0 | 429 | 0 | 8 | 9 |
| Excess Tax Benefit of Stock Options – Cash Flow Financing | 31 | 35 | 27 | 111 | 69 |
| Common and Preferred Stock – Purchase | 0 | 0 | 0 | 0 | 0 |
| Cash Dividends | 0 | 0 | 0 | 0 | 0 |
| Long-Term Debt – Issuance | 66 | 335 | 1,375 | 920 | 100 |
| Long-Term Debt – Reduction | 60 | 670 | 1,484 | 484 | 28 |
| Current Debt – Increase (Decrease) | -- | -- | -- | -- | -- |
| Other – Increase (Decrease) | -29 | -28 | -8 | 16 | 0 |
| FINANCING ACTIVITIES - NET CASH FLOW | 7 | 101 | -89 | 571 | 150 |
| Other Adjustments | |||||
| All numbers in millions of US Dollars | |||||
| 2014 (12/31/14) | 2013 (12/31/13) | 2012 (12/31/12) | 2011 (12/31/11) | 2010 (12/31/10) | |
| Exchange Rate Effect | -19 | 4 | 6 | -21 | -13 |
| Change in Cash and Cash Equivalents | |||||
| All numbers in millions of US Dollars | |||||
| 2014 (12/31/14) | 2013 (12/31/13) | 2012 (12/31/12) | 2011 (12/31/11) | 2010 (12/31/10) | |
| CASH AND CASH EQUIVALENTS - INCREASE (DECREASE) | 157 | 424 | 296 | -160 | 101 |
| Supplemental | |||||
| Interest Paid – Net | 8 | 9 | 20 | 14 | 8 |
| Income Taxes Paid | 17 | -2 | -22 | 46 | 80 |
Compet
| Category | FIRST SOLAR | YINGLI GREEN ENERGY HOLDINGS CO LTD | SUNPOWER CORP | TRINA SOLAR LTD |
| Market Capitalization | $ 6.3B | $ 425.30M | $ 4.3B | $ 1.2B |
| Stock Price | $ 60.79 | $ 2.08 | $ 32.37 | $ 12.23 |
| Earning Per Share | $ 3.91 | $ (1.55) | $ 1.55 | $ 0.86 |
| Full Time Employee | 6,060 | 19,306 | 7,188 | 13,974 |
| Total Revenue | $ 3.4B | $ 2.2B | $ 3.0B | $ 2.1B |
| Gross Profit Magin(TTM) | 31.65% | 15.95% | 26.12% | 17.23% |
| Operating Margin (TTM) | 12.51% | -1.01% | 10.58% | 5.71% |
