First Solar Inc (FSLR)

Financial leverage ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total assets	US$ in thousands	12,124,400	10,365,100	8,251,230	7,413,750	7,108,930
Total stockholders’ equity	US$ in thousands	7,977,580	6,687,470	5,836,060	5,959,550	5,520,930
Financial leverage ratio		1.52	1.55	1.41	1.24	1.29

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $12,124,400K ÷ $7,977,580K
= 1.52

First Solar Inc's financial leverage ratio has fluctuated over the past five years. The ratio was 1.29 as of December 31, 2020, indicating that the company had $1.29 of debt for every $1 of equity. This ratio decreased slightly to 1.24 by December 31, 2021, suggesting a reduction in the company's reliance on debt.

However, in the following years, the financial leverage ratio increased to 1.41 as of December 31, 2022, 1.55 by December 31, 2023, and then decreased again to 1.52 by December 31, 2024. These fluctuations imply that First Solar Inc's capital structure has been evolving, with periods of higher and lower debt levels relative to equity.

Overall, the trend in the financial leverage ratio indicates varying degrees of leveraging in the company's capital structure during the period under consideration. A higher ratio suggests a higher level of financial risk due to greater reliance on debt, while a lower ratio indicates a more conservative capital structure with a stronger equity base.