First Solar Inc (FSLR)

Financial leverage 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
Total assets	US$ in thousands	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	7,054,690	7,137,810	7,256,930
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
Financial leverage ratio		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	1.36	1.39	1.41

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $10,365,100K ÷ $6,687,470K
= 1.55

The financial leverage ratio of First Solar Inc has been gradually increasing over the past eight quarters, indicating a higher level of financial leverage in the company's capital structure. The ratio has risen from 1.26 in Q1 2022 to 1.55 in Q4 2023, showing a consistent trend towards higher leverage.

A financial leverage ratio of 1.55 in Q4 2023 suggests that the company has $1.55 in debt for every $1 of equity in its capital structure. This indicates that First Solar is relying more on debt financing compared to equity. A higher financial leverage ratio can amplify returns in favorable situations but also increases risk during economic downturns or challenging market conditions.

It is essential for investors and stakeholders to closely monitor the financial leverage ratio of First Solar Inc to assess the company's ability to meet its debt obligations and manage financial risk effectively. The increasing trend in the leverage ratio warrants attention and further analysis to understand the implications on the company's financial stability and performance.