First Solar Inc (FSLR)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	6,687,470	5,836,060	5,959,550	5,520,930	5,096,770
Debt-to-capital ratio		0.06	0.03	0.04	0.04	0.08

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $464,068K ÷ ($464,068K + $6,687,470K)
= 0.06

The debt-to-capital ratio of First Solar Inc has exhibited fluctuations over the past five years. In 2023, the ratio stands at 0.08, reflecting an increase from the previous year's ratio of 0.03 in 2022. This current ratio implies that debt represents 8% of the company's total capital structure, indicating a moderate level of leverage.

Comparing to the ratios in 2021 and 2020 at 0.04 and 0.05 respectively, the debt-to-capital ratio has been on an upward trend, suggesting potentially increased reliance on debt financing in recent years. However, it is noteworthy that the current ratio is still lower than the 0.08 reported in 2019, indicating that the company has not reached the same level of debt relative to its capital structure as it did in that year.

Overall, the debt-to-capital ratio of First Solar Inc in 2023 suggests a moderate debt burden compared to the total capital employed by the company, and investors may want to further assess the company's overall financial health and risk management strategies in light of this leverage.