First Solar Inc (FSLR)

Debt-to-assets ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	464,068	184,349	236,005	237,691	454,187
Total assets	US$ in thousands	10,365,100	8,251,230	7,413,750	7,108,930	7,515,690
Debt-to-assets ratio		0.04	0.02	0.03	0.03	0.06

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $464,068K ÷ $10,365,100K
= 0.04

The debt-to-assets ratio of First Solar Inc has shown a fluctuating trend over the past five years. The ratio was relatively low at 0.06 in 2019, decreased to 0.04 in 2020, and then increased to 0.03 in 2021. Subsequently, it rose to 0.02 in 2022 before reaching its lowest point of 0.05 in 2023.

A lower debt-to-assets ratio indicates a lower level of financial risk and reliance on debt to finance company operations. In the case of First Solar Inc, the decreasing trend in the ratio from 2019 to 2022 suggests a conservative approach to managing debt levels. However, the slight increase in the ratio in 2023 may indicate a potential shift in the company's capital structure towards slightly higher debt levels, although it still remains at a relatively low level.

Overall, the debt-to-assets ratio of First Solar Inc reflects a historically prudent approach to managing debt, with a recent uptick in 2023 potentially signaling a strategic adjustment in the company's financial leverage. This ratio provides insights into the company's overall capital structure and financial risk profile for investors and stakeholders to consider.