First Solar Inc (FSLR)

Debt-to-capital ratio

		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	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Long-term debt	US$ in thousands	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 stockholders’ equity	US$ in thousands	6,687,470	6,302,380	6,039,640	5,868,730	5,836,060	5,828,340	5,895,830	5,875,180	5,959,550	5,830,080	5,783,640	5,694,780	5,520,930	5,396,110	5,226,800	5,168,620	5,096,770	5,182,480	5,135,120	5,129,160
Debt-to-capital ratio		0.06	0.07	0.07	0.05	0.03	0.04	0.03	0.04	0.04	0.04	0.05	0.04	0.04	0.00	0.00	0.00	0.08	0.00	0.00	0.00

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 shown a relatively stable trend over the past eight quarters, ranging between 0.03 and 0.08. The ratio reflects the proportion of debt in the company's capital structure compared to total capital, including both debt and equity.

In Q4 2023 and Q3 2023, the debt-to-capital ratio was 0.08 and 0.07, respectively, indicating that the company's debt represented 8% and 7% of its total capital. These figures suggest a moderate level of leverage in the company's capital structure.

The ratios for Q2 and Q1 2023 remained consistent at 0.07 and 0.05, respectively, showing a slightly lower level of debt relative to capital compared to the previous quarters.

Looking back to the previous year, the debt-to-capital ratio was 0.03 in Q4 2022, gradually increasing to 0.04 in Q3 2022, and then maintaining this level in Q1 2022 and Q2 2022. This indicates that the company has slightly increased its reliance on debt as a source of financing over the past year.

Overall, the trend in the debt-to-capital ratio of First Solar Inc suggests a relatively conservative approach to debt financing, with the company maintaining a relatively stable level of debt in its capital structure. However, investors and stakeholders should continue to monitor this ratio to assess the company's financial risk and sustainability.