First Solar Inc (FSLR)
Debt-to-equity 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-equity ratio | 0.07 | 0.03 | 0.04 | 0.04 | 0.09 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $464,068K ÷ $6,687,470K
= 0.07
The debt-to-equity ratio of First Solar Inc has shown fluctuating trends over the past five years. In 2023, the ratio stands at 0.08, indicating that for every dollar of equity, there is $0.08 of debt. This suggests a moderate level of financial leverage, with the company relying more on equity financing compared to debt.
Compared to the previous years, the debt-to-equity ratio has increased from 0.03 in 2022, 0.04 in 2021, and 0.05 in 2020. However, it is still lower than the ratio of 0.09 reported in 2019. The significant fluctuations in the ratio could signify changes in the company's capital structure and financing decisions over the years.
Overall, the current debt-to-equity ratio of First Solar Inc indicates a relatively conservative approach to debt management, which may provide the company with financial stability and flexibility in meeting its obligations and pursuing growth opportunities.
Peer comparison
Dec 31, 2023