First Solar Inc (FSLR)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.03 | 0.03 | 0.04 | 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 |
| Debt-to-capital ratio | 0.04 | 0.05 | 0.06 | 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 |
| Debt-to-equity ratio | 0.05 | 0.05 | 0.06 | 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 |
| 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 |
First Solar Inc's solvency ratios demonstrate the company's ability to meet its long-term financial obligations and manage its debt effectively.
The Debt-to-assets ratio shows the proportion of the company's assets financed by debt. The ratio has been consistently low, ranging from 0.00 to 0.05 over the past few years, indicating that First Solar relies less on debt to fund its operations and has a strong asset base.
The Debt-to-capital ratio measures the percentage of capital provided by debt. First Solar's Debt-to-capital ratio has also remained low, fluctuating between 0.00 and 0.07, suggesting that the company maintains a balanced capital structure with a low reliance on debt financing.
The Debt-to-equity ratio reflects the extent to which the company's operations are funded by creditors versus shareholders. First Solar's Debt-to-equity ratio has been stable, ranging from 0.00 to 0.07, indicating that the company has a healthy mix of debt and equity in its capital structure.
The Financial leverage ratio assesses the company's financial risk by comparing its total assets to equity. First Solar's Financial leverage ratio has been relatively steady, hovering around 1.25 to 1.56, showing that the company has a conservative level of leverage and is not overly reliant on debt to finance its operations.
Overall, based on these solvency ratios, First Solar Inc appears to have a strong financial position with a conservative debt structure, which positions the company well to meet its long-term financial obligations.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 39.46 | 43.58 | 52.86 | 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 |
The interest coverage ratio measures a company's ability to pay interest expenses on its outstanding debt. A higher ratio indicates that the company is more capable of meeting its interest obligations.
Looking at the historical trend of First Solar Inc's interest coverage ratio, we observe a significant improvement over time. The ratio was negative at the end of 2019 and the first quarter of 2020, indicating that the company's operating income was insufficient to cover its interest expenses.
However, starting from the second quarter of 2020, the interest coverage ratio turned positive and showed a steady increase, reflecting improved financial health. By the end of 2021, the ratio reached a robust level of 44.65, indicating strong earnings relative to interest expenses.
In the following periods, the interest coverage ratio remained high, peaking at 69.75 by the end of 2023, suggesting a solid ability to service debt obligations. However, there was a slight decline in the ratio in the first quarter of 2024 and the following quarters, which is worth monitoring for potential changes in the company's financial circumstances.
Overall, the upward trend in First Solar Inc's interest coverage ratio demonstrates a positive financial performance and indicates a healthy ability to cover interest payments with operating income.