First Solar Inc (FSLR)

Debt-to-equity 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 stockholders’ equity	US$ in thousands	7,977,580	6,687,470	5,836,060	5,959,550	5,520,930
Debt-to-equity ratio		0.05	0.07	0.03	0.04	0.04

December 31, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $373,354K ÷ $7,977,580K
= 0.05

Based on the provided data, the debt-to-equity ratio of First Solar Inc has remained relatively stable over the years. As of December 31, 2020 and December 31, 2021, the ratio stood at 0.04, indicating that the company had a low level of debt relative to its equity during these years.

By December 31, 2022, the debt-to-equity ratio decreased slightly to 0.03, suggesting a further reduction in the company's reliance on debt financing compared to its equity. However, this trend reversed by December 31, 2023, when the ratio increased to 0.07. This increase may signal a higher proportion of debt in the company's capital structure, which could be a result of increased borrowing or decreased equity.

By December 31, 2024, the debt-to-equity ratio decreased to 0.05, showing some improvement from the previous year but still higher than the levels seen in 2020 and 2021. Overall, the fluctuations in the debt-to-equity ratio of First Solar Inc over the years suggest varying levels of leverage and financial risk in the company's operations. Investors and stakeholders should monitor these changes to assess the company's capital structure and financial health effectively.