First Solar Inc (FSLR)

Debt-to-assets ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Long-term debt	US$ in thousands	373,354	464,068	184,349	236,005	237,691
Total assets	US$ in thousands	12,124,400	10,365,100	8,251,230	7,413,750	7,108,930
Debt-to-assets ratio		0.03	0.04	0.02	0.03	0.03

December 31, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $373,354K ÷ $12,124,400K
= 0.03

First Solar Inc's debt-to-assets ratio remained relatively stable over the five-year period, ranging from 0.02 to 0.04. The ratio indicates that the company's level of debt in relation to its total assets is low, suggesting a conservative approach to financial leverage. A low debt-to-assets ratio is generally viewed positively as it signifies a lower risk of financial distress and insolvency. However, fluctuations in the ratio over the years might indicate varying levels of debt management strategies employed by the company. Overall, the consistent low debt-to-assets ratio implies that First Solar Inc has a strong financial position with a minimal reliance on debt to support its operations and investments.