First Solar (NAS:FSLR) Interest Coverage

: 73.05 (As of Sep. 2023)

View and export this data going back to 2006. Start your Free Trial

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. First Solar's Operating Income for the three months ended in Sep. 2023 was $273 Mil. First Solar's Interest Expense for the three months ended in Sep. 2023 was $-4 Mil. First Solar's interest coverage for the quarter that ended in Sep. 2023 was 73.05. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for First Solar's Interest Coverage or its related term are showing as below:

FSLR' s Interest Coverage Range Over the Past 10 Years
Min: 1.55 Med: 13.46 Max: 242.73
Current: 49.68

FSLR's Interest Coverage is ranked better than
64.67% of 634 companies
in the Semiconductors industry
Industry Median: 21.84 vs FSLR: 49.68

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

First Solar Interest Coverage Historical Data

The historical data trend for First Solar's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

* Premium members only.

First Solar Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Interest Coverage

1.55

7.43

13.46

33.53

First Solar Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
Interest Coverage																-	-	24.09	144.15	73.05

Competitive Comparison

For the Solar subindustry, First Solar's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

First Solar Interest Coverage Distribution

For the Semiconductors industry and Technology sector, First Solar's Interest Coverage distribution charts can be found below:

* The bar in red indicates where First Solar's Interest Coverage falls into.

First Solar Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

First Solar's Interest Coverage for the fiscal year that ended in Dec. 2022 is calculated as

Here, for the fiscal year that ended in Dec. 2022, First Solar's Interest Expense was $-12 Mil. Its Operating Income was $-281 Mil. And its Long-Term Debt & Capital Lease Obligation was $225 Mil.

First Solar did not have earnings to cover the interest expense.

First Solar's Interest Coverage for the quarter that ended in Sep. 2023 is calculated as

Here, for the three months ended in Sep. 2023, First Solar's Interest Expense was $-4 Mil. Its Operating Income was $273 Mil. And its Long-Term Debt & Capital Lease Obligation was $498 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Sep. 2023 )	/	Interest Expense (Q: Sep. 2023 )
	=	-1	*	272.754	/	-3.734
	=	73.05

The higher the ratio, the stronger the company's Financial Strength is.

First Solar (NAS:FSLR) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

First Solar Interest Coverage Related Terms

Thank you for viewing the detailed overview of First Solar's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

First Solar (NAS:FSLR) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Semiconductors » First Solar Inc (NAS:FSLR) » Definitions » Interest Coverage

Traded in Other Exchanges

FSLR:Mexico F3A:Germany F3A:Germany F3A:Germany FSLR34:Brazil FSLR:Austria FSLR:Argentina

Address

350 West Washington Street, Suite 600, Tempe, AZ, USA, 85281

Website

https://www.firstsolar.com

First Solar designs and manufactures solar photovoltaic panels, modules, and systems for use in utility-scale development projects. The company's solar modules use cadmium telluride to convert sunlight into electricity. This is commonly called thin-film technology. First Solar is the world's largest thin-film solar module manufacturer. It has production lines in Vietnam, Malaysia, the United States, and India.

Executives

Norman L. Wright	director	26335 N. 104TH WAY, SCOTTSDALE AZ 85255
Lisa A Kro	director	3700 WELLS FARGO CENTER, 90 SOUTH 7TH STREET, MINNEAPOLIS MN 55402
Anita M. George	director	4/5 SHANTINIKETAN, NEW DELHI K7 110 021
Kathryn A Hollister	director	331 OREGON STREET, CINCINNATI OH 45202
Michael Koralewski	officer: Chief Mfg. Operations Officer	28101 CEDAR PARK BLVD., PERRYSBURG OH 43551
Kuntal Kumar Verma	officer: Chief Mfg. Engineering Officer	28101 CEDAR PARK BLVD., PERRYSBURG OH 43551
Patrick James Buehler	officer: Chief Quality and Rel. Officer	28101 CEDAR PARK BLVD., PERRYSBURG OH 43551
Markus Gloeckler	officer: Co-Chief Technology Officer	28101 CEDAR PARK BLVD., PERRYSBURG OH 43551
Jason E. Dymbort	officer: General Counsel, Interim	77 RIO ROBLES, SAN JOSE CA 95134
Caroline Stockdale	officer: EVP, HR & Communications	C/O WARNER MUSIC GROUP, 75 ROCKEFELLER PLAZA, NEW YORK NY 10019
Byron Michael Jeffers	officer: CAO, Interim	350 WEST WASHINGTON ST., TEMPE AZ 85281
Molly Joseph	director	9209 GRAND SUMMIT BLVD, DRIPPING SPRINGS TX 78620
Jtw Trust No. 1 Uad 9/19/02	other: Member of Group(1)	P.O. BOX 1860, BENTONVILLE AR 72712
Jcl Holdings Llc	10 percent owner	PO BOX 1860, BENTONVILLE AR 72712
Lukas T Walton	10 percent owner	C/O CRAVATH, SWAINE & MOORE LLP, 825 EIGHTH AVENUE, NEW YORK NY 10019