Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
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- Income Statement
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- Analysis of Reportable Segments
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- Enterprise Value to EBITDA (EV/EBITDA)
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Solvency Ratios (Summary)
First Solar Inc., solvency ratios (quarterly data)
Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
- Debt to Equity Ratio
- The debt to equity ratio has generally remained low and stable over the provided periods, fluctuating between 0.03 and 0.11. Early in the timeframe, from March 2019 to March 2020, the ratio hovered around 0.09 to 0.11, indicating a modest use of debt relative to equity. From mid-2020 to early 2023, the ratio decreased slightly, reaching lows around 0.03 to 0.05, denoting a reduction in leverage. However, from mid-2023 onward, there is a slight upward trend with values around 0.07 to 0.09, suggesting a mild increase in debt relative to equity again.
- Debt to Capital Ratio
- This ratio exhibits a pattern similar to the debt to equity ratio, with initial values near 0.1 declining to approximately 0.03 in late 2022 and early 2023, demonstrating decreased reliance on debt financing. A modest increase is observed starting mid-2023, reaching up to 0.08 by March 2024, implying a slight shift towards higher debt financing in the capital structure.
- Debt to Assets Ratio
- The debt to assets ratio consistently remains low, ranging between 0.02 and 0.08. Initially, it maintains about 0.06 to 0.08 before declining to the 0.02 to 0.04 range in late 2022 and early 2023. Similar to other debt ratios, a subtle increase is seen in mid to late 2023, stabilizing around 0.05 to 0.06 in early 2024. Overall, this implies a conservative asset financing strategy with limited debt usage.
- Financial Leverage
- Financial leverage, defined as total assets over equity, shows a gradual decrease from 1.41 in early 2019 to approximately 1.24-1.26 in 2020 and early 2021, reflecting a slight reduction in leverage. From 2021 onwards, leverage steadily rises, peaking at 1.56 in mid-2024 before a minor reduction near the end of the period. The upward trend indicates increased use of assets financed by equity over the last few years, despite low debt levels.
- Interest Coverage Ratio
- Interest coverage experienced significant volatility prior to 2020, with notable negative values in late 2019 (-3.45 and -1.1), indicating losses or insufficient earnings to cover interest expenses. Starting from March 2020, the ratio demonstrates a sharp improvement, moving into positive and increasingly high values, reaching peaks above 50 between 2023 and mid-2024. This suggests strengthening earnings relative to interest expenses and enhanced ability to service debt. Despite some fluctuations, the overall trend is a significant improvement in operational profitability or reduced interest burden.
Debt Ratios
Coverage Ratios
Debt to Equity
First Solar Inc., debt to equity calculation (quarterly data)
| Sep 30, 2024 | Jun 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||||
| Current portion of debt | ||||||||||||||||||||||||||||||
| Long-term debt, noncurrent portion | ||||||||||||||||||||||||||||||
| Total debt | ||||||||||||||||||||||||||||||
| Stockholders’ equity | ||||||||||||||||||||||||||||||
| Solvency Ratio | ||||||||||||||||||||||||||||||
| Debt to equity1 | ||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Debt to Equity, Competitors2 | ||||||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | ||||||||||||||||||||||||||||||
| Analog Devices Inc. | ||||||||||||||||||||||||||||||
| Applied Materials Inc. | ||||||||||||||||||||||||||||||
| Broadcom Inc. | ||||||||||||||||||||||||||||||
| Intel Corp. | ||||||||||||||||||||||||||||||
| KLA Corp. | ||||||||||||||||||||||||||||||
| Lam Research Corp. | ||||||||||||||||||||||||||||||
| Micron Technology Inc. | ||||||||||||||||||||||||||||||
| NVIDIA Corp. | ||||||||||||||||||||||||||||||
| Qualcomm Inc. | ||||||||||||||||||||||||||||||
| Texas Instruments Inc. | ||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q3 2024 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
The financial data reflects the company's total debt, stockholders’ equity, and debt to equity ratio over a series of quarterly periods from March 2019 through September 2024.
- Total Debt
-
Total debt demonstrates a declining trend from March 2019 through June 2022, decreasing from approximately 570.7 million USD to about 175.2 million USD. This represents a substantial reduction in liabilities over this period. However, beginning in March 2023, total debt shows a notable upward trajectory, increasing steadily from 320.4 million USD up to around 581.6 million USD by September 2024. This recent rise reverses the earlier downward trend and indicates a shift towards increased leverage.
- Stockholders’ Equity
-
Stockholders’ equity exhibits consistent growth throughout the entire period analyzed. Starting from roughly 5.13 billion USD in March 2019, equity rises steadily each quarter, reaching approximately 7.59 billion USD by September 2024. This steady appreciation suggests sustained profitability and reinvestment or accumulation of retained earnings without interruptions or significant declines.
- Debt to Equity Ratio
-
The debt to equity ratio remains relatively low over the entire timeframe, fluctuating between 0.03 and 0.11. Early on, from March 2019 through mid-2022, this ratio declines from 0.11 to a low of 0.03, reflecting the combination of reduced debt and increasing equity, which portrays a strengthening balance sheet position. However, starting early 2023, the debt to equity ratio begins to increase, moving from about 0.05 to 0.08 by September 2024, reflecting the rise in total debt outpacing the growth rate of equity during this period. Despite this increase, the ratio remains well below 0.10, indicating that debt levels relative to equity are still modest.
In summary, the company has demonstrated a strong equity base with consistent growth over the five-year period, accompanied by prudent debt levels that decreased significantly until mid-2022. Recently, there has been a reversal in debt trends with increased borrowing which has somewhat elevated the debt to equity ratio but it remains at a manageable level. These movements may warrant monitoring to determine the sustainability and implications for financial leverage and risk going forward.
Debt to Capital
First Solar Inc., debt to capital calculation (quarterly data)
| Sep 30, 2024 | Jun 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||||
| Current portion of debt | ||||||||||||||||||||||||||||||
| Long-term debt, noncurrent portion | ||||||||||||||||||||||||||||||
| Total debt | ||||||||||||||||||||||||||||||
| Stockholders’ equity | ||||||||||||||||||||||||||||||
| Total capital | ||||||||||||||||||||||||||||||
| Solvency Ratio | ||||||||||||||||||||||||||||||
| Debt to capital1 | ||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Debt to Capital, Competitors2 | ||||||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | ||||||||||||||||||||||||||||||
| Analog Devices Inc. | ||||||||||||||||||||||||||||||
| Applied Materials Inc. | ||||||||||||||||||||||||||||||
| Broadcom Inc. | ||||||||||||||||||||||||||||||
| Intel Corp. | ||||||||||||||||||||||||||||||
| KLA Corp. | ||||||||||||||||||||||||||||||
| Lam Research Corp. | ||||||||||||||||||||||||||||||
| Micron Technology Inc. | ||||||||||||||||||||||||||||||
| NVIDIA Corp. | ||||||||||||||||||||||||||||||
| Qualcomm Inc. | ||||||||||||||||||||||||||||||
| Texas Instruments Inc. | ||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q3 2024 Calculation
Debt to capital = Total debt ÷ Total capital
= ÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals notable trends in the company's debt structure and overall capital management over the observed periods. Total debt experienced fluctuations, with an initial decrease from approximately $571 million in the first quarter of 2019 to roughly $260 million in the third quarter of 2020. This reduction represents a substantial deleveraging phase during the initial part of the timeline. However, following this period, debt levels increased consistently, reaching about $581 million by the third quarter of 2024. This upward trajectory suggests a strategic shift towards increased borrowing or capital restructuring in recent years.
Total capital exhibited a steady growth trend throughout the periods analyzed. Starting at approximately $5.7 billion in early 2019, it incrementally rose to over $8.1 billion by the third quarter of 2024. The growth in total capital aligns with overall expansion or reinvestment activities, reflecting an ongoing increase in company resources and financing capacity.
The debt-to-capital ratio, a key leverage indicator, shows a declining trend from 0.1 in the first quarter of 2019 to a low of around 0.03 in the fourth quarter of 2022. This decline corresponds to the substantial reduction in total debt while the capital base expanded. Post-2022, the ratio exhibits a gradual increase, reaching approximately 0.07 by the third quarter of 2024, correlating with the rise in total debt observed in the latter periods. Despite these variations, the debt-to-capital ratio remains relatively low, indicating a conservative leverage position over the entire timeframe.
- Total Debt
- Decreased significantly from Q1 2019 to Q3 2020, followed by a steady increase through Q3 2024.
- Total Capital
- Consistently increased from around $5.7 billion in early 2019 to over $8.1 billion by Q3 2024.
- Debt-to-Capital Ratio
- Dropped from 0.1 in early 2019 to near 0.03 in late 2022, then moderated upward to approximately 0.07 by Q3 2024, reflecting controlled leverage.
Debt to Assets
First Solar Inc., debt to assets calculation (quarterly data)
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||||
| Current portion of debt | ||||||||||||||||||||||||||||||
| Long-term debt, noncurrent portion | ||||||||||||||||||||||||||||||
| Total debt | ||||||||||||||||||||||||||||||
| Total assets | ||||||||||||||||||||||||||||||
| Solvency Ratio | ||||||||||||||||||||||||||||||
| Debt to assets1 | ||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Debt to Assets, Competitors2 | ||||||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | ||||||||||||||||||||||||||||||
| Analog Devices Inc. | ||||||||||||||||||||||||||||||
| Applied Materials Inc. | ||||||||||||||||||||||||||||||
| Broadcom Inc. | ||||||||||||||||||||||||||||||
| Intel Corp. | ||||||||||||||||||||||||||||||
| KLA Corp. | ||||||||||||||||||||||||||||||
| Lam Research Corp. | ||||||||||||||||||||||||||||||
| Micron Technology Inc. | ||||||||||||||||||||||||||||||
| NVIDIA Corp. | ||||||||||||||||||||||||||||||
| Qualcomm Inc. | ||||||||||||||||||||||||||||||
| Texas Instruments Inc. | ||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q3 2024 Calculation
Debt to assets = Total debt ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
The data exhibits significant dynamics in the company's financial leverage and asset base over multiple quarters. Total debt demonstrates a fluctuating pattern with notable decreases and subsequent increases. Initially, total debt declined from $570.7 million in March 2019 to $260.9 million by September 2020, reflecting a substantial reduction in liabilities. This downward trend was followed by a period of volatility, with debt levels rising again toward the end of the dataset, reaching $581.6 million by September 2024.
Total assets have shown consistent growth throughout the observed periods. Starting at approximately $7.26 billion in March 2019, total assets increased steadily to about $11.44 billion by September 2024. This upward trajectory indicates ongoing expansion or asset accumulation, which may contribute to the company's operational capacity or investment portfolio.
The debt to assets ratio provides insight into the relative leverage of the company. This ratio decreased from 0.08 in early 2019 to a low near 0.02 in late 2022, signaling a reduction in financial leverage and potentially enhanced solvency. From early 2023 onward, the ratio began to rise gradually, stabilizing around 0.05 toward the most recent quarters. Despite the rise, the ratio remains moderate, suggesting that the company maintains a balanced approach to debt relative to its asset base.
- Total Debt
- Initial substantial reduction from early 2019 to late 2020, followed by a general upward trend through 2024.
- Total Assets
- Consistent and steady growth over the observed period, increasing by roughly 57% from 2019 to 2024.
- Debt to Assets Ratio
- Decline from 0.08 to 0.02 between 2019 and 2022, indicating improving leverage position, with a moderate increase thereafter stabilizing near 0.05.
Overall, the data suggests that the company has undergone a deleveraging phase followed by a measured increase in indebtedness, while continuing to expand its asset base. The moderate increase in leverage ratios in recent quarters may reflect strategic financing decisions in response to growth opportunities or market conditions. The balance between asset growth and debt usage indicates an ongoing management effort to optimize capital structure.
Financial Leverage
First Solar Inc., financial leverage calculation (quarterly data)
| Sep 30, 2024 | Jun 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||||
| Total assets | ||||||||||||||||||||||||||||||
| Stockholders’ equity | ||||||||||||||||||||||||||||||
| Solvency Ratio | ||||||||||||||||||||||||||||||
| Financial leverage1 | ||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Financial Leverage, Competitors2 | ||||||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | ||||||||||||||||||||||||||||||
| Analog Devices Inc. | ||||||||||||||||||||||||||||||
| Applied Materials Inc. | ||||||||||||||||||||||||||||||
| Broadcom Inc. | ||||||||||||||||||||||||||||||
| Intel Corp. | ||||||||||||||||||||||||||||||
| KLA Corp. | ||||||||||||||||||||||||||||||
| Lam Research Corp. | ||||||||||||||||||||||||||||||
| Micron Technology Inc. | ||||||||||||||||||||||||||||||
| NVIDIA Corp. | ||||||||||||||||||||||||||||||
| Qualcomm Inc. | ||||||||||||||||||||||||||||||
| Texas Instruments Inc. | ||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q3 2024 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several trends regarding the company's asset base, equity position, and financial leverage over the observed periods.
- Total assets
- Total assets showed fluctuations across the quarters, starting at approximately 7.26 billion in the first quarter of 2019. A gradual decrease was noticed until the first quarter of 2020, followed by a relatively stable phase through 2020 and early 2021. Starting in 2022, total assets exhibited a consistent upward trend, accelerating significantly in 2023 and early 2024, reaching over 11.4 billion by the third quarter of 2024. This upward momentum suggests ongoing asset growth and possible expansion activities during recent periods.
- Stockholders’ equity
- Stockholders' equity began near 5.13 billion in early 2019 and displayed moderate growth with minor fluctuations through 2021, peaking around 5.96 billion at the end of 2021. In 2022, equity experienced some variability but largely remained stable. From 2023 onward, equity increased steadily, surpassing 7.5 billion by the third quarter of 2024. This steady increase in equity indicates strengthening of the company's net worth and retained earnings accumulation in recent years.
- Financial leverage
- The financial leverage ratio demonstrates a declining trend starting at 1.41 in the first quarter of 2019, dropping to around 1.24 by the end of 2021. This decline indicates a reduction in reliance on debt relative to equity during this interval. However, beginning in 2022, the leverage ratio started to rise, reaching 1.55 by the first quarter of 2024, before slightly decreasing to around 1.51 in the third quarter of 2024. The increase in leverage ratio in recent quarters suggests increased debt usage relative to equity, possibly supporting asset growth or financing operational needs.
In summary, the company experienced a phase of asset and equity stability followed by accelerated growth from 2022 onwards. While equity growth has been consistent in the recent period, financial leverage increased after a previous decline, indicating a strategic balance shift between debt and equity financing during expansion.
Interest Coverage
First Solar Inc., interest coverage calculation (quarterly data)
| Sep 30, 2024 | Jun 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||||
| Net income (loss) | ||||||||||||||||||||||||||||||
| Add: Income tax expense | ||||||||||||||||||||||||||||||
| Add: Interest expense, net | ||||||||||||||||||||||||||||||
| Earnings before interest and tax (EBIT) | ||||||||||||||||||||||||||||||
| Solvency Ratio | ||||||||||||||||||||||||||||||
| Interest coverage1 | ||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Interest Coverage, Competitors2 | ||||||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | ||||||||||||||||||||||||||||||
| Analog Devices Inc. | ||||||||||||||||||||||||||||||
| Applied Materials Inc. | ||||||||||||||||||||||||||||||
| Broadcom Inc. | ||||||||||||||||||||||||||||||
| KLA Corp. | ||||||||||||||||||||||||||||||
| Micron Technology Inc. | ||||||||||||||||||||||||||||||
| NVIDIA Corp. | ||||||||||||||||||||||||||||||
| Qualcomm Inc. | ||||||||||||||||||||||||||||||
| Texas Instruments Inc. | ||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q3 2024 Calculation
Interest coverage
= (EBITQ3 2024
+ EBITQ2 2024
+ EBITQ1 2024
+ EBITQ4 2023)
÷ (Interest expenseQ3 2024
+ Interest expenseQ2 2024
+ Interest expenseQ1 2024
+ Interest expenseQ4 2023)
= ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
- Earnings before interest and tax (EBIT)
- The EBIT figures show marked volatility throughout the analyzed period. Initially, there was a significant negative EBIT of -58,872 thousand USD in March 2019, followed by recovery and positive values in the subsequent quarters of 2019, peaking at 50,633 thousand USD in September. However, this was followed by a steep decline back into negative territory at -87,225 thousand USD by December 2019. Throughout 2020, the EBIT demonstrated a strong upward trajectory, reaching a high of 204,119 thousand USD in September, before decreasing to approximately 52,321 thousand USD by year-end. The upward movement continued significantly in 2021, culminating in a peak EBIT of 259,157 thousand USD in March 2021. After fluctuations including negative EBIT in early 2022 (notably -59,889 thousand USD in March and -58,689 thousand USD in September), a recovery trend began late in 2022 and accelerated sharply through 2023 and into mid-2024, reaching a maximum of 386,896 thousand USD in June 2024 before a slight decline in September 2024, but remaining robust overall.
- Interest Expense, Net
- Interest expense displayed variability but remained generally within the range of approximately 2,500 to 10,000 thousand USD across the quarters. Early periods showed moderate levels around 10,000 thousand USD in March 2019 and a drop into the 3,000–7,000 range in most quarters thereafter. Notably, interest expense saw incremental rises in late 2023 and mid-2024, peaking at 9,765 thousand USD in September 2024. These fluctuations suggest periodic changes in borrowing costs or debt levels but without extreme volatility compared to EBIT.
- Interest Coverage Ratio
- The interest coverage ratio experienced significant variability, particularly correlated with the EBIT performance. In early periods, some negative and very low values were observed (e.g., -3.45 in December 2019), indicating instances when EBIT was insufficient to cover interest expenses. From mid-2020 onwards, the ratio improved dramatically, frequently exceeding 10, and reaching exceptionally high values such as 57.26 in December 2023 and a peak of 69.75 in March 2024. Although there was some moderation towards the later reported quarters (e.g., 39.14 in September 2024), the overall trend points to strengthened ability to cover interest obligations, driven primarily by growing EBIT.
- Overall Analysis
- The data exhibits significant fluctuations in operational profitability, with periods of negative EBIT indicating volatility or potential operational challenges during several quarters, especially at the start and around 2022. Despite this volatility, there is a clear and sustained improvement in earnings performance beginning in mid-2020 and strongly intensifying in 2023 and into 2024. Interest expenses remained moderately stable with some increases towards the later quarters, but the company's ability to cover its interest expenses improved substantially over the span analyzed, as demonstrated by the rising interest coverage ratio. This suggests a strengthening financial position and operational efficiency over time, despite intermittent setbacks.