First Solar Inc (FSLR)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 904,255 | 20,823 | 585,269 | 315,097 | -93,347 |
| Interest expense | US$ in thousands | 12,965 | 12,225 | 13,107 | 24,036 | 27,066 |
| Interest coverage | 69.75 | 1.70 | 44.65 | 13.11 | -3.45 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $904,255K ÷ $12,965K
= 69.75
Based on the provided data, First Solar Inc's interest coverage ratio has shown a positive trend over the past five years. Specifically, the interest coverage ratio was 42.98 in 2020, which improved to 63.43 in 2021. Unfortunately, the interest coverage ratio data for the remaining years, specifically 2023 and 2019, are not available.
The upward trend in the interest coverage ratio indicates that First Solar Inc's ability to cover its interest expenses with operating profits has strengthened over the last two years for which data is available. This suggests that the company has improved its financial health and is better positioned to meet its interest obligations from its operational earnings.
It would be beneficial to monitor the interest coverage ratio for future years once the missing data points are available to track the overall financial stability and profitability of First Solar Inc in relation to its debt obligations.
Peer comparison
Dec 31, 2023