First Solar Inc (FSLR)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.04 | 0.05 | 0.05 | 0.04 | 0.02 | 0.03 | 0.02 | 0.03 | 0.03 | 0.03 | 0.04 | 0.04 | 0.03 | 0.00 | 0.00 | 0.00 | 0.06 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.06 | 0.07 | 0.07 | 0.05 | 0.03 | 0.04 | 0.03 | 0.04 | 0.04 | 0.04 | 0.05 | 0.04 | 0.04 | 0.00 | 0.00 | 0.00 | 0.08 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.07 | 0.07 | 0.07 | 0.05 | 0.03 | 0.04 | 0.03 | 0.04 | 0.04 | 0.04 | 0.05 | 0.04 | 0.04 | 0.00 | 0.00 | 0.00 | 0.09 | 0.00 | 0.00 | 0.00 |
| 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 |
First Solar Inc's solvency ratios provide insights into the company's ability to meet its long-term financial obligations. Looking at the trends over the past eight quarters:
1. Debt-to-assets ratio has remained relatively stable around 0.05, indicating the company has low dependence on debt to finance its assets.
2. Debt-to-capital ratio and debt-to-equity ratio have followed a similar pattern, also indicating conservative financial leverage with minimal debt relative to capital and equity.
3. The financial leverage ratio has shown a steady increase from 1.26 in Q1 2022 to 1.55 in Q4 2023, suggesting a gradual increase in financial leverage over time.
Overall, the solvency ratios reflect a prudent debt management strategy by First Solar Inc, with a low reliance on debt financing in relation to its total assets, capital, and equity. However, the increasing trend in the financial leverage ratio may indicate a need for monitoring to ensure the company maintains a healthy balance between debt and equity in its capital structure.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 69.75 | 57.26 | 19.81 | 11.59 | 1.70 | 16.69 | 26.03 | 20.52 | 44.65 | 34.42 | 28.83 | 27.96 | 13.11 | 7.29 | 1.22 | -1.10 | -3.45 | 1.49 | 1.95 | 0.49 |
The interest coverage ratio for First Solar Inc in Q2 2022 was 26.80, indicating the company's ability to cover its interest expenses 26.80 times over with its earnings before interest and taxes (EBIT). This suggests that the company had a strong ability to meet its interest obligations during that quarter. It is important to note that there is no data provided for the other quarters in 2023 and 2022, making it challenging to assess the trend in interest coverage over time. It would be beneficial to analyze additional data points to gain a more comprehensive understanding of the company's financial health in terms of interest coverage.