First Solar Inc (FSLR)

Financial leverage ratio

		Dec 31, 2024	Sep 30, 2024	Mar 31, 2024	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
Total assets	US$ in thousands	12,124,400	11,436,600	10,760,600	10,365,100	9,582,640	8,997,170	8,564,600	8,251,230	7,492,820	7,419,370	7,399,220	7,413,750	7,268,630	7,248,470	7,108,910	7,108,930	6,985,220	7,072,620	6,949,140	7,515,690
Total stockholders’ equity	US$ in thousands	7,977,580	7,593,650	6,902,510	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
Financial leverage ratio		1.52	1.51	1.56	1.55	1.52	1.49	1.46	1.41	1.29	1.26	1.26	1.24	1.25	1.25	1.25	1.29	1.29	1.35	1.34	1.47

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 shown a gradual increase from 1.47 as of December 31, 2019, to 1.52 as of December 31, 2024. This indicates that the company's reliance on debt to finance its operations has slightly increased over the period. However, the fluctuations in the ratio seem to be relatively stable, with minor variations observed between the quarters.

The financial leverage ratio of 1.52 as of December 31, 2024, suggests that the company's total debt represents 1.52 times the total equity, indicating a moderate level of financial leverage. Investors and creditors may view this ratio as an acceptable level of leveraging, as it shows a balance between debt and equity financing.

It is important for First Solar Inc to monitor its financial leverage ratio closely to ensure that it maintains a healthy debt-to-equity structure and does not become overly leveraged. By keeping this ratio in check, the company can demonstrate financial stability and mitigate risks associated with excessive debt.