First Solar Inc (FSLR)

Debt-to-assets ratio

		Dec 31, 2024	Sep 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	373,354	373,321	418,695	464,068	464,040	437,410	320,378	184,349	254,224	170,017	247,354	236,005	241,483	276,084	254,447	237,691	—	—	—	454,187
Total assets	US$ in thousands	12,124,400	11,436,600	10,760,600	10,365,100	9,582,640	8,997,170	8,564,600	8,251,230	7,492,820	7,419,370	7,399,220	7,413,750	7,268,630	7,248,470	7,108,910	7,108,930	6,985,220	7,072,620	6,949,140	7,515,690
Debt-to-assets ratio		0.03	0.03	0.04	0.04	0.05	0.05	0.04	0.02	0.03	0.02	0.03	0.03	0.03	0.04	0.04	0.03	0.00	0.00	0.00	0.06

December 31, 2024 calculation

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

The debt-to-assets ratio of First Solar Inc has shown fluctuation over the years, indicating varying levels of leverage employed by the company. As of December 31, 2019, the ratio stood at 0.06, indicating that 6% of the company's assets were financed through debt. Subsequently, in the following quarters of 2020, the ratio dropped to 0.00, suggesting a significant decrease in the proportion of debt used to fund assets.

Throughout 2021 and 2022, the debt-to-assets ratio gradually increased to 0.03 and then decreased to 0.02 by June 30, 2022. The ratio remained relatively stable around this level until September 30, 2023, where it saw a slight increase to 0.05. However, by the end of 2024, the ratio had decreased back to 0.03.

Overall, the trend in the debt-to-assets ratio reflects First Solar Inc's management of debt levels in relation to its assets. The lower ratios in 2020 indicated a reduction in debt utilization, possibly as a strategic decision or due to improved financial performance. The subsequent minor fluctuations in the ratio suggest that the company maintained a balanced approach to debt management throughout the analyzed period.