Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
- Debt Ratios
- The debt to equity ratio decreased steadily from 0.09 in 2019 to a low of 0.03 in 2022 before rising again to 0.09 in 2023. When including operating lease liabilities, the pattern is similar but with slightly higher values, starting at 0.12 in 2019, declining to 0.04 in 2022, and returning to 0.09 in 2023. Debt to capital and debt to assets ratios exhibit comparable trends, showing a reduction from 2019 levels to their lowest in 2022, followed by an increase in 2023. Including operating lease liabilities results in higher ratios, but the overall trend remains consistent.
- Financial Leverage
- Financial leverage showed a decrease from 1.47 in 2019 to 1.24 in 2021, reflecting a reduction in the relative proportion of total assets financed by equity. However, it increased to 1.41 in 2022 and further to 1.55 in 2023, indicating a recent upward trend in leverage levels.
- Interest Coverage Ratio
- Interest coverage experienced significant volatility. It started at a negative value (-3.45) in 2019, suggesting operating losses or insufficient earnings to cover interest expenses. It greatly improved to 13.11 in 2020 and peaked impressively at 44.65 in 2021. However, in 2022 it dropped sharply to 1.7, before rising substantially again to 69.75 in 2023. This pattern indicates fluctuating operational profitability relative to interest obligations over the period.
- Fixed Charge Coverage Ratio
- Similar to interest coverage, fixed charge coverage was negative in 2019 (-1.46), showing challenges in covering fixed financing costs. It improved markedly in 2020 (7.8) and 2021 (19.58), declined to 1.32 in 2022, and then increased again to 36.57 in 2023. This suggests variations in the firm’s ability to meet fixed financing charges, mirroring the dynamics seen in interest coverage.
- Overall Analysis
- The data indicate a period of debt reduction and deleveraging from 2019 through 2022. However, 2023 saw a reversal, with debt ratios rising and financial leverage increasing, possibly reflecting new financing activities or changes in capital structure. The coverage ratios reveal considerable fluctuations in the company's earnings relative to its financial obligations, signaling periods of both strong profitability and tighter earnings coverage of debt costs. The volatility in these ratios suggests a financial profile influenced by operational performance variations and potential strategic shifts in leverage policy.
Debt Ratios
Coverage Ratios
Debt to Equity
Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
---|---|---|---|---|---|---|
Selected Financial Data (US$ in thousands) | ||||||
Current portion of debt | 96,238) | —) | 3,896) | 41,540) | 17,510) | |
Finance lease liabilities, current | 51) | —) | —) | —) | —) | |
Long-term debt, noncurrent portion | 464,068) | 184,349) | 236,005) | 237,691) | 454,187) | |
Finance lease liabilities, noncurrent | 17,063) | —) | —) | —) | —) | |
Total debt | 577,420) | 184,349) | 239,901) | 279,231) | 471,697) | |
Stockholders’ equity | 6,687,469) | 5,836,055) | 5,959,551) | 5,520,928) | 5,096,767) | |
Solvency Ratio | ||||||
Debt to equity1 | 0.09 | 0.03 | 0.04 | 0.05 | 0.09 | |
Benchmarks | ||||||
Debt to Equity, Competitors2 | ||||||
Advanced Micro Devices Inc. | 0.04 | 0.05 | 0.04 | 0.06 | — | |
Analog Devices Inc. | 0.20 | 0.18 | 0.18 | 0.43 | 0.47 | |
Applied Materials Inc. | 0.35 | 0.45 | 0.45 | 0.52 | 0.65 | |
Broadcom Inc. | 1.64 | 1.74 | 1.59 | 1.72 | 1.32 | |
Intel Corp. | 0.47 | 0.41 | 0.40 | 0.45 | — | |
KLA Corp. | 2.02 | 4.75 | 1.02 | 1.30 | 1.29 | |
Lam Research Corp. | 0.61 | 0.80 | 0.83 | 1.12 | 0.96 | |
Micron Technology Inc. | 0.30 | 0.14 | 0.15 | 0.17 | 0.16 | |
NVIDIA Corp. | 0.50 | 0.41 | 0.41 | 0.16 | — | |
Qualcomm Inc. | 0.71 | 0.86 | 1.58 | 2.59 | 3.25 | |
Texas Instruments Inc. | 0.66 | 0.60 | 0.58 | 0.74 | — | |
Debt to Equity, Sector | ||||||
Semiconductors & Semiconductor Equipment | 0.47 | 0.43 | 0.50 | 0.62 | — | |
Debt to Equity, Industry | ||||||
Information Technology | 0.66 | 0.71 | 0.83 | 0.97 | — |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 577,420 ÷ 6,687,469 = 0.09
2 Click competitor name to see calculations.
The financial data reveals significant movements in both the total debt and stockholders’ equity over the five-year period analyzed.
- Total Debt
- The total debt initially decreased substantially from 471,697 thousand US dollars at the end of 2019 to 184,349 thousand US dollars by the end of 2022, indicating a consistent effort to reduce debt obligations during this period. However, in 2023, there was a sharp increase in total debt, rising to 577,420 thousand US dollars, which is the highest value recorded in the five-year span.
- Stockholders’ Equity
- Stockholders’ equity showed a steady upward trend throughout the entire period. It increased from 5,096,767 thousand US dollars in 2019 to 6,687,469 thousand US dollars in 2023. There were year-over-year increases each period except for a slight decline from 2021 to 2022, where equity decreased modestly from 5,959,551 to 5,836,055 thousand US dollars, before rebounding strongly in 2023.
- Debt to Equity Ratio
- The debt to equity ratio declined consistently from 0.09 in 2019 to 0.03 in 2022, reflecting a reduction in leverage and possibly an improved balance sheet position relative to equity. However, this trend reversed in 2023, when the ratio returned to 0.09, indicating increased leverage consistent with the rise in total debt during that year.
In summary, the organization demonstrated a general trend of strengthening equity and decreasing leverage up until 2022. The significant increase in total debt and leverage in 2023 represents a notable change in the capital structure, which could reflect strategic borrowing or other financial maneuvers. This shift warrants further investigation to understand its impact on financial stability and future growth prospects.
Debt to Equity (including Operating Lease Liability)
First Solar Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks
Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
---|---|---|---|---|---|---|
Selected Financial Data (US$ in thousands) | ||||||
Current portion of debt | 96,238) | —) | 3,896) | 41,540) | 17,510) | |
Finance lease liabilities, current | 51) | —) | —) | —) | —) | |
Long-term debt, noncurrent portion | 464,068) | 184,349) | 236,005) | 237,691) | 454,187) | |
Finance lease liabilities, noncurrent | 17,063) | —) | —) | —) | —) | |
Total debt | 577,420) | 184,349) | 239,901) | 279,231) | 471,697) | |
Operating lease liabilities, current | 10,307) | 9,193) | 12,781) | 14,006) | 11,102) | |
Operating lease liabilities, noncurrent | 36,662) | 40,589) | 145,912) | 189,034) | 112,515) | |
Total debt (including operating lease liability) | 624,389) | 234,131) | 398,594) | 482,271) | 595,314) | |
Stockholders’ equity | 6,687,469) | 5,836,055) | 5,959,551) | 5,520,928) | 5,096,767) | |
Solvency Ratio | ||||||
Debt to equity (including operating lease liability)1 | 0.09 | 0.04 | 0.07 | 0.09 | 0.12 | |
Benchmarks | ||||||
Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
Advanced Micro Devices Inc. | 0.06 | 0.05 | 0.10 | 0.10 | — | |
Analog Devices Inc. | 0.21 | 0.19 | 0.19 | 0.46 | 0.47 | |
Applied Materials Inc. | 0.37 | 0.48 | 0.47 | 0.54 | 0.65 | |
Broadcom Inc. | 1.65 | 1.76 | 1.61 | 1.75 | 1.32 | |
Intel Corp. | 0.47 | 0.42 | 0.40 | 0.46 | — | |
KLA Corp. | 2.08 | 4.83 | 1.05 | 1.34 | 1.29 | |
Lam Research Corp. | 0.64 | 0.83 | 0.86 | 1.16 | 0.96 | |
Micron Technology Inc. | 0.32 | 0.15 | 0.17 | 0.19 | 0.16 | |
NVIDIA Corp. | 0.54 | 0.44 | 0.46 | 0.22 | — | |
Qualcomm Inc. | 0.74 | 0.90 | 1.64 | 2.67 | 3.25 | |
Texas Instruments Inc. | 0.70 | 0.63 | 0.62 | 0.77 | — | |
Debt to Equity (including Operating Lease Liability), Sector | ||||||
Semiconductors & Semiconductor Equipment | 0.48 | 0.45 | 0.52 | 0.64 | — | |
Debt to Equity (including Operating Lease Liability), Industry | ||||||
Information Technology | 0.73 | 0.77 | 0.91 | 1.04 | — |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity
= 624,389 ÷ 6,687,469 = 0.09
2 Click competitor name to see calculations.
- Total Debt (including operating lease liability)
-
The total debt showed a declining trend from 2019 through 2022, decreasing from 595,314 thousand US dollars in 2019 to 234,131 thousand US dollars in 2022. However, in 2023, total debt increased substantially to 624,389 thousand US dollars, marking the highest level in the five-year period analyzed.
- Stockholders' Equity
-
Stockholders' equity exhibited consistent growth over the period from 2019 to 2023. It increased steadily from 5,096,767 thousand US dollars in 2019 to 6,687,469 thousand US dollars in 2023, with a slight dip in 2022 compared to 2021 but overall maintaining an upward trajectory.
- Debt to Equity Ratio (including operating lease liability)
-
The debt to equity ratio declined steadily from 0.12 in 2019 to a low of 0.04 in 2022, indicating an improving equity base relative to debt levels and a lower financial leverage. In 2023, the ratio increased again to 0.09, reflecting the increase in total debt observed the same year, although it remained below the 2019 level.
- Overall Observations
-
There is a clear trend of debt reduction from 2019 through 2022, alongside steady growth in stockholders' equity, leading to improved leverage ratios. However, the spike in total debt in 2023 resulted in an increase in leverage, though equity also grew, maintaining a relatively conservative capital structure. These patterns suggest a period of deleveraging and strengthening equity followed by a shift toward increased debt utilization in the most recent year.
Debt to Capital
Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
---|---|---|---|---|---|---|
Selected Financial Data (US$ in thousands) | ||||||
Current portion of debt | 96,238) | —) | 3,896) | 41,540) | 17,510) | |
Finance lease liabilities, current | 51) | —) | —) | —) | —) | |
Long-term debt, noncurrent portion | 464,068) | 184,349) | 236,005) | 237,691) | 454,187) | |
Finance lease liabilities, noncurrent | 17,063) | —) | —) | —) | —) | |
Total debt | 577,420) | 184,349) | 239,901) | 279,231) | 471,697) | |
Stockholders’ equity | 6,687,469) | 5,836,055) | 5,959,551) | 5,520,928) | 5,096,767) | |
Total capital | 7,264,889) | 6,020,404) | 6,199,452) | 5,800,159) | 5,568,464) | |
Solvency Ratio | ||||||
Debt to capital1 | 0.08 | 0.03 | 0.04 | 0.05 | 0.08 | |
Benchmarks | ||||||
Debt to Capital, Competitors2 | ||||||
Advanced Micro Devices Inc. | 0.04 | 0.04 | 0.04 | 0.05 | — | |
Analog Devices Inc. | 0.16 | 0.15 | 0.15 | 0.30 | 0.32 | |
Applied Materials Inc. | 0.26 | 0.31 | 0.31 | 0.34 | 0.39 | |
Broadcom Inc. | 0.62 | 0.64 | 0.61 | 0.63 | 0.57 | |
Intel Corp. | 0.32 | 0.29 | 0.29 | 0.31 | — | |
KLA Corp. | 0.67 | 0.83 | 0.50 | 0.57 | 0.56 | |
Lam Research Corp. | 0.38 | 0.44 | 0.45 | 0.53 | 0.49 | |
Micron Technology Inc. | 0.23 | 0.12 | 0.13 | 0.15 | 0.14 | |
NVIDIA Corp. | 0.33 | 0.29 | 0.29 | 0.14 | — | |
Qualcomm Inc. | 0.42 | 0.46 | 0.61 | 0.72 | 0.76 | |
Texas Instruments Inc. | 0.40 | 0.37 | 0.37 | 0.43 | — | |
Debt to Capital, Sector | ||||||
Semiconductors & Semiconductor Equipment | 0.32 | 0.30 | 0.33 | 0.38 | — | |
Debt to Capital, Industry | ||||||
Information Technology | 0.40 | 0.41 | 0.45 | 0.49 | — |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Debt to capital = Total debt ÷ Total capital
= 577,420 ÷ 7,264,889 = 0.08
2 Click competitor name to see calculations.
- Debt Levels
- The total debt experienced a notable decline from 2019 through 2022, dropping from approximately $471.7 million to $184.3 million. This represents a consistent reduction in debt over the four-year span. However, in 2023, there was a significant increase in total debt, rising sharply to about $577.4 million, which is the highest figure within the analyzed period.
- Total Capital
- Total capital showed a generally upward trend from 2019 to 2023. Starting at approximately $5.57 billion in 2019, it increased steadily each year, peaking at around $7.26 billion in 2023. Despite a slight dip in 2022 compared to 2021, the overall movement indicates growth in capital resources.
- Debt to Capital Ratio
- The debt to capital ratio mirrored the reduction in total debt from 2019 to 2022, decreasing from 0.08 in 2019 to a low of 0.03 in 2022. This suggests an improved capital structure with lower relative leverage over these years. However, in 2023, the ratio returned to 0.08, which aligns with the increased debt level observed in that year, indicating a reversal to the leverage position seen at the start of the period.
- Summary
- Overall, the data reflects a period of deleveraging from 2019 through 2022, with both total debt and the debt to capital ratio decreasing, while total capital moderately increased. The sudden rise in debt and the corresponding increase in the debt to capital ratio in 2023 suggest a strategic change, potentially involving increased borrowing or capital restructuring. The company's capital base, however, continued to expand throughout the period, indicating growth despite fluctuations in debt levels.
Debt to Capital (including Operating Lease Liability)
First Solar Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks
Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
---|---|---|---|---|---|---|
Selected Financial Data (US$ in thousands) | ||||||
Current portion of debt | 96,238) | —) | 3,896) | 41,540) | 17,510) | |
Finance lease liabilities, current | 51) | —) | —) | —) | —) | |
Long-term debt, noncurrent portion | 464,068) | 184,349) | 236,005) | 237,691) | 454,187) | |
Finance lease liabilities, noncurrent | 17,063) | —) | —) | —) | —) | |
Total debt | 577,420) | 184,349) | 239,901) | 279,231) | 471,697) | |
Operating lease liabilities, current | 10,307) | 9,193) | 12,781) | 14,006) | 11,102) | |
Operating lease liabilities, noncurrent | 36,662) | 40,589) | 145,912) | 189,034) | 112,515) | |
Total debt (including operating lease liability) | 624,389) | 234,131) | 398,594) | 482,271) | 595,314) | |
Stockholders’ equity | 6,687,469) | 5,836,055) | 5,959,551) | 5,520,928) | 5,096,767) | |
Total capital (including operating lease liability) | 7,311,858) | 6,070,186) | 6,358,145) | 6,003,199) | 5,692,081) | |
Solvency Ratio | ||||||
Debt to capital (including operating lease liability)1 | 0.09 | 0.04 | 0.06 | 0.08 | 0.10 | |
Benchmarks | ||||||
Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
Advanced Micro Devices Inc. | 0.05 | 0.05 | 0.09 | 0.09 | — | |
Analog Devices Inc. | 0.17 | 0.16 | 0.16 | 0.31 | 0.32 | |
Applied Materials Inc. | 0.27 | 0.32 | 0.32 | 0.35 | 0.39 | |
Broadcom Inc. | 0.62 | 0.64 | 0.62 | 0.64 | 0.57 | |
Intel Corp. | 0.32 | 0.30 | 0.29 | 0.31 | — | |
KLA Corp. | 0.67 | 0.83 | 0.51 | 0.57 | 0.56 | |
Lam Research Corp. | 0.39 | 0.45 | 0.46 | 0.54 | 0.49 | |
Micron Technology Inc. | 0.24 | 0.13 | 0.14 | 0.16 | 0.14 | |
NVIDIA Corp. | 0.35 | 0.31 | 0.31 | 0.18 | — | |
Qualcomm Inc. | 0.43 | 0.47 | 0.62 | 0.73 | 0.76 | |
Texas Instruments Inc. | 0.41 | 0.39 | 0.38 | 0.44 | — | |
Debt to Capital (including Operating Lease Liability), Sector | ||||||
Semiconductors & Semiconductor Equipment | 0.33 | 0.31 | 0.34 | 0.39 | — | |
Debt to Capital (including Operating Lease Liability), Industry | ||||||
Information Technology | 0.42 | 0.44 | 0.48 | 0.51 | — |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 624,389 ÷ 7,311,858 = 0.09
2 Click competitor name to see calculations.
- Total Debt (including operating lease liability)
- The total debt decreased significantly from US$595,314 thousand in 2019 to US$234,131 thousand in 2022, indicating a steady reduction in debt levels over this period. However, there was a sharp increase in 2023, with total debt rising to US$624,389 thousand, the highest value in the five-year span.
- Total Capital (including operating lease liability)
- Total capital showed a general upward trend from US$5,692,081 thousand in 2019 to US$7,311,858 thousand in 2023. There was a slight decline in 2022 to US$6,070,186 thousand from the previous year, but overall capital increased over the five years.
- Debt to Capital Ratio (including operating lease liability)
- This ratio declined steadily from 0.10 in 2019 to a low of 0.04 in 2022, reflecting a reduced reliance on debt financing relative to total capital. In 2023, the ratio rose to 0.09, indicating a renewed increase in leverage, although still slightly below the initial 2019 level.
Debt to Assets
Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
---|---|---|---|---|---|---|
Selected Financial Data (US$ in thousands) | ||||||
Current portion of debt | 96,238) | —) | 3,896) | 41,540) | 17,510) | |
Finance lease liabilities, current | 51) | —) | —) | —) | —) | |
Long-term debt, noncurrent portion | 464,068) | 184,349) | 236,005) | 237,691) | 454,187) | |
Finance lease liabilities, noncurrent | 17,063) | —) | —) | —) | —) | |
Total debt | 577,420) | 184,349) | 239,901) | 279,231) | 471,697) | |
Total assets | 10,365,132) | 8,251,228) | 7,413,746) | 7,108,931) | 7,515,689) | |
Solvency Ratio | ||||||
Debt to assets1 | 0.06 | 0.02 | 0.03 | 0.04 | 0.06 | |
Benchmarks | ||||||
Debt to Assets, Competitors2 | ||||||
Advanced Micro Devices Inc. | 0.04 | 0.04 | 0.03 | 0.04 | — | |
Analog Devices Inc. | 0.14 | 0.13 | 0.13 | 0.24 | 0.26 | |
Applied Materials Inc. | 0.18 | 0.20 | 0.21 | 0.24 | 0.28 | |
Broadcom Inc. | 0.54 | 0.54 | 0.53 | 0.54 | 0.49 | |
Intel Corp. | 0.26 | 0.23 | 0.23 | 0.24 | — | |
KLA Corp. | 0.42 | 0.53 | 0.34 | 0.37 | 0.38 | |
Lam Research Corp. | 0.27 | 0.29 | 0.31 | 0.40 | 0.37 | |
Micron Technology Inc. | 0.21 | 0.10 | 0.12 | 0.12 | 0.12 | |
NVIDIA Corp. | 0.27 | 0.25 | 0.24 | 0.11 | — | |
Qualcomm Inc. | 0.30 | 0.32 | 0.38 | 0.44 | 0.48 | |
Texas Instruments Inc. | 0.35 | 0.32 | 0.31 | 0.35 | — | |
Debt to Assets, Sector | ||||||
Semiconductors & Semiconductor Equipment | 0.26 | 0.24 | 0.26 | 0.30 | — | |
Debt to Assets, Industry | ||||||
Information Technology | 0.26 | 0.26 | 0.29 | 0.31 | — |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Debt to assets = Total debt ÷ Total assets
= 577,420 ÷ 10,365,132 = 0.06
2 Click competitor name to see calculations.
- Total debt
- The total debt shows a declining trend from 471,697 thousand US dollars at the end of 2019 to 184,349 thousand US dollars by the end of 2022. This represents a substantial reduction over this period. However, in 2023, there is a significant increase in total debt, reaching 577,420 thousand US dollars, which more than triples the amount recorded in 2022.
- Total assets
- Total assets decreased slightly from 7,515,689 thousand US dollars at the end of 2019 to 7,108,931 thousand US dollars in 2020. Thereafter, assets grew steadily, reaching 7,413,746 thousand in 2021 and continuing upward to 8,251,228 thousand in 2022. By the end of 2023, total assets rose sharply to 10,365,132 thousand US dollars, indicating robust asset growth in the most recent year.
- Debt to assets ratio
- The debt to assets ratio declined progressively from 0.06 in 2019 to a low of 0.02 in 2022, reflecting a reduction in leverage relative to the company’s asset base. In 2023, this ratio reverted to 0.06, aligned with the sharp increase in total debt observed during the same period, despite the concurrent growth in total assets.
Debt to Assets (including Operating Lease Liability)
First Solar Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks
Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
---|---|---|---|---|---|---|
Selected Financial Data (US$ in thousands) | ||||||
Current portion of debt | 96,238) | —) | 3,896) | 41,540) | 17,510) | |
Finance lease liabilities, current | 51) | —) | —) | —) | —) | |
Long-term debt, noncurrent portion | 464,068) | 184,349) | 236,005) | 237,691) | 454,187) | |
Finance lease liabilities, noncurrent | 17,063) | —) | —) | —) | —) | |
Total debt | 577,420) | 184,349) | 239,901) | 279,231) | 471,697) | |
Operating lease liabilities, current | 10,307) | 9,193) | 12,781) | 14,006) | 11,102) | |
Operating lease liabilities, noncurrent | 36,662) | 40,589) | 145,912) | 189,034) | 112,515) | |
Total debt (including operating lease liability) | 624,389) | 234,131) | 398,594) | 482,271) | 595,314) | |
Total assets | 10,365,132) | 8,251,228) | 7,413,746) | 7,108,931) | 7,515,689) | |
Solvency Ratio | ||||||
Debt to assets (including operating lease liability)1 | 0.06 | 0.03 | 0.05 | 0.07 | 0.08 | |
Benchmarks | ||||||
Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
Advanced Micro Devices Inc. | 0.05 | 0.04 | 0.06 | 0.06 | — | |
Analog Devices Inc. | 0.15 | 0.14 | 0.14 | 0.25 | 0.26 | |
Applied Materials Inc. | 0.20 | 0.22 | 0.22 | 0.26 | 0.28 | |
Broadcom Inc. | 0.54 | 0.55 | 0.53 | 0.55 | 0.49 | |
Intel Corp. | 0.26 | 0.23 | 0.23 | 0.24 | — | |
KLA Corp. | 0.43 | 0.54 | 0.35 | 0.38 | 0.38 | |
Lam Research Corp. | 0.28 | 0.30 | 0.33 | 0.41 | 0.37 | |
Micron Technology Inc. | 0.22 | 0.11 | 0.12 | 0.13 | 0.12 | |
NVIDIA Corp. | 0.29 | 0.27 | 0.27 | 0.15 | — | |
Qualcomm Inc. | 0.31 | 0.33 | 0.40 | 0.46 | 0.48 | |
Texas Instruments Inc. | 0.36 | 0.34 | 0.33 | 0.37 | — | |
Debt to Assets (including Operating Lease Liability), Sector | ||||||
Semiconductors & Semiconductor Equipment | 0.27 | 0.25 | 0.27 | 0.31 | — | |
Debt to Assets (including Operating Lease Liability), Industry | ||||||
Information Technology | 0.28 | 0.29 | 0.31 | 0.33 | — |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 624,389 ÷ 10,365,132 = 0.06
2 Click competitor name to see calculations.
- Total debt (including operating lease liability)
- The total debt decreased from 595,314 thousand USD in 2019 to 234,131 thousand USD in 2022, showing a consistent reduction in leverage over this four-year period. However, in 2023, there was a significant increase to 624,389 thousand USD, exceeding the initial 2019 level.
- Total assets
- Total assets showed a generally upward trend over the five-year period. Starting at 7,515,689 thousand USD in 2019, assets slightly declined to 7,108,931 thousand USD in 2020, then increased each subsequent year, reaching 10,365,132 thousand USD in 2023, representing substantial growth in asset base.
- Debt to assets (including operating lease liability)
- The debt-to-assets ratio progressively decreased from 0.08 in 2019 to a low of 0.03 in 2022, indicating improved asset coverage relative to debt during this time. However, this ratio rose to 0.06 in 2023, reflecting the increased debt level against assets but remaining below the 2019 ratio.
Financial Leverage
Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
---|---|---|---|---|---|---|
Selected Financial Data (US$ in thousands) | ||||||
Total assets | 10,365,132) | 8,251,228) | 7,413,746) | 7,108,931) | 7,515,689) | |
Stockholders’ equity | 6,687,469) | 5,836,055) | 5,959,551) | 5,520,928) | 5,096,767) | |
Solvency Ratio | ||||||
Financial leverage1 | 1.55 | 1.41 | 1.24 | 1.29 | 1.47 | |
Benchmarks | ||||||
Financial Leverage, Competitors2 | ||||||
Advanced Micro Devices Inc. | 1.21 | 1.23 | 1.66 | 1.54 | — | |
Analog Devices Inc. | 1.37 | 1.38 | 1.38 | 1.79 | 1.83 | |
Applied Materials Inc. | 1.88 | 2.19 | 2.11 | 2.11 | 2.32 | |
Broadcom Inc. | 3.04 | 3.23 | 3.03 | 3.18 | 2.71 | |
Intel Corp. | 1.81 | 1.80 | 1.77 | 1.89 | — | |
KLA Corp. | 4.82 | 8.99 | 3.04 | 3.48 | 3.39 | |
Lam Research Corp. | 2.29 | 2.74 | 2.64 | 2.81 | 2.57 | |
Micron Technology Inc. | 1.46 | 1.33 | 1.34 | 1.38 | 1.36 | |
NVIDIA Corp. | 1.86 | 1.66 | 1.70 | 1.42 | — | |
Qualcomm Inc. | 2.37 | 2.72 | 4.14 | 5.86 | 6.71 | |
Texas Instruments Inc. | 1.91 | 1.87 | 1.85 | 2.11 | — | |
Financial Leverage, Sector | ||||||
Semiconductors & Semiconductor Equipment | 1.79 | 1.79 | 1.89 | 2.08 | — | |
Financial Leverage, Industry | ||||||
Information Technology | 2.56 | 2.69 | 2.90 | 3.12 | — |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 10,365,132 ÷ 6,687,469 = 1.55
2 Click competitor name to see calculations.
The analysis of the financial data over the five-year period reveals several notable trends regarding the company's assets, equity, and financial leverage.
- Total Assets
- Total assets experienced a decline from 7,515,689 thousand US dollars in 2019 to 7,108,931 thousand US dollars in 2020. Following this decrease, there was a gradual increase in total assets over the next three years, reaching a peak of 10,365,132 thousand US dollars by the end of 2023. This indicates a strategy of asset growth after a temporary contraction.
- Stockholders’ Equity
- Stockholders’ equity demonstrated a consistent upward trend from 5,096,767 thousand US dollars in 2019 to 6,687,469 thousand US dollars in 2023, with the exception of a slight dip in 2022. The growth in equity suggests an overall strengthening of the company's financial base and potentially retained earnings or capital injections supporting the increase.
- Financial Leverage
- The financial leverage ratio showed a decline from 1.47 in 2019 to 1.24 in 2021, indicating reduced reliance on debt financing relative to equity. However, the ratio then increased to 1.41 in 2022 and further to 1.55 in 2023. This reversal points to an increasing use of debt in the capital structure during the latter years, which could reflect strategic borrowing to finance asset growth or other initiatives.
Overall, the data suggests a period of cautious asset management followed by expansion, accompanied by strengthened equity capital. The shift in financial leverage implies a changing approach to financing, possibly balancing between risk and growth objectives as the company expanded its asset base during the latter part of the period analyzed.
Interest Coverage
Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
---|---|---|---|---|---|---|
Selected Financial Data (US$ in thousands) | ||||||
Net income (loss) | 830,777) | (44,166) | 468,693) | 398,355) | (114,933) | |
Add: Income tax expense | 60,513) | 52,764) | 103,469) | (107,294) | (5,480) | |
Add: Interest expense, net | 12,965) | 12,225) | 13,107) | 24,036) | 27,066) | |
Earnings before interest and tax (EBIT) | 904,255) | 20,823) | 585,269) | 315,097) | (93,347) | |
Solvency Ratio | ||||||
Interest coverage1 | 69.75 | 1.70 | 44.65 | 13.11 | -3.45 | |
Benchmarks | ||||||
Interest Coverage, Competitors2 | ||||||
Advanced Micro Devices Inc. | 5.79 | 14.61 | 109.09 | 28.23 | — | |
Analog Devices Inc. | 14.63 | 16.46 | 8.19 | 7.79 | 7.49 | |
Applied Materials Inc. | 33.42 | 34.33 | 29.69 | 18.36 | 14.79 | |
Broadcom Inc. | 10.31 | 8.16 | 4.59 | 2.37 | 2.54 | |
Intel Corp. | 1.87 | 16.66 | 37.35 | 40.87 | — | |
KLA Corp. | 13.76 | 22.76 | 16.00 | 9.22 | 11.40 | |
Lam Research Corp. | 28.40 | 29.11 | 21.95 | 15.51 | 21.86 | |
Micron Technology Inc. | -13.58 | 51.66 | 35.18 | 16.41 | 56.09 | |
NVIDIA Corp. | 16.96 | 43.12 | 24.96 | 58.12 | — | |
Qualcomm Inc. | 11.72 | 31.61 | 19.38 | 10.50 | 12.93 | |
Texas Instruments Inc. | 22.01 | 47.88 | 49.47 | 32.67 | — | |
Interest Coverage, Sector | ||||||
Semiconductors & Semiconductor Equipment | 10.45 | 21.20 | 18.41 | 14.11 | — | |
Interest Coverage, Industry | ||||||
Information Technology | 17.69 | 22.65 | 19.92 | 14.14 | — |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Interest coverage = EBIT ÷ Interest expense
= 904,255 ÷ 12,965 = 69.75
2 Click competitor name to see calculations.
- Earnings before interest and tax (EBIT)
- The EBIT experienced significant fluctuations over the analyzed period. In 2019, EBIT was notably negative, indicating operational challenges or high expenses relative to earnings. However, there was a dramatic recovery in 2020, followed by a substantial increase in 2021, suggesting improved operational efficiency or increased revenue. A sharp decrease occurred in 2022, bringing EBIT close to break-even levels. The year 2023 saw a strong rebound with EBIT reaching its highest point during the period, highlighting a pronounced improvement in operational profitability.
- Interest expense, net
- Interest expense remained relatively stable throughout the five years, with slight fluctuations. The highest expense was recorded in 2019, followed by a gradual decrease until 2022. In 2023, interest expense was marginally higher than the previous year but remained significantly lower than the initial 2019 level. This pattern suggests generally controlled borrowing costs or debt levels.
- Interest coverage ratio
- The interest coverage ratio mirrored the changes in EBIT and reflected the company's capacity to cover interest expenses from earnings. The ratio started at a negative value in 2019, indicating insufficient earnings to cover interest costs. A substantial improvement occurred in 2020 and 2021, with the coverage ratio reaching very strong levels, suggesting robust earnings relative to interest expense. In 2022, the ratio dropped sharply to near 1.7, signaling reduced earnings or increased vulnerability in meeting interest obligations. The ratio soared to 69.75 in 2023, marking exceptional ability to meet interest expenses from operating income.
Fixed Charge Coverage
Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
---|---|---|---|---|---|---|
Selected Financial Data (US$ in thousands) | ||||||
Net income (loss) | 830,777) | (44,166) | 468,693) | 398,355) | (114,933) | |
Add: Income tax expense | 60,513) | 52,764) | 103,469) | (107,294) | (5,480) | |
Add: Interest expense, net | 12,965) | 12,225) | 13,107) | 24,036) | 27,066) | |
Earnings before interest and tax (EBIT) | 904,255) | 20,823) | 585,269) | 315,097) | (93,347) | |
Add: Operating lease cost | 12,090) | 14,634) | 17,681) | 18,739) | 21,833) | |
Earnings before fixed charges and tax | 916,345) | 35,457) | 602,950) | 333,836) | (71,514) | |
Interest expense, net | 12,965) | 12,225) | 13,107) | 24,036) | 27,066) | |
Operating lease cost | 12,090) | 14,634) | 17,681) | 18,739) | 21,833) | |
Fixed charges | 25,055) | 26,859) | 30,788) | 42,775) | 48,899) | |
Solvency Ratio | ||||||
Fixed charge coverage1 | 36.57 | 1.32 | 19.58 | 7.80 | -1.46 | |
Benchmarks | ||||||
Fixed Charge Coverage, Competitors2 | ||||||
Advanced Micro Devices Inc. | 3.18 | 6.82 | 36.00 | 13.08 | — | |
Analog Devices Inc. | 11.89 | 12.87 | 6.64 | 6.48 | 5.62 | |
Applied Materials Inc. | 23.69 | 24.67 | 22.50 | 14.48 | 12.35 | |
Broadcom Inc. | 9.81 | 6.55 | 3.70 | 1.92 | 2.27 | |
Intel Corp. | 1.59 | 7.34 | 16.56 | 25.00 | — | |
KLA Corp. | 12.19 | 18.72 | 13.03 | 7.74 | 10.39 | |
Lam Research Corp. | 20.49 | 21.44 | 17.80 | 12.52 | 17.83 | |
Micron Technology Inc. | -9.77 | 31.49 | 22.49 | 11.10 | 32.90 | |
NVIDIA Corp. | 10.19 | 25.61 | 14.40 | 18.89 | — | |
Qualcomm Inc. | 9.29 | 22.52 | 14.48 | 8.30 | 10.68 | |
Texas Instruments Inc. | 18.41 | 36.70 | 36.25 | 24.14 | — | |
Fixed Charge Coverage, Sector | ||||||
Semiconductors & Semiconductor Equipment | 8.34 | 14.41 | 12.75 | 10.43 | — | |
Fixed Charge Coverage, Industry | ||||||
Information Technology | 11.34 | 13.44 | 12.21 | 9.04 | — |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 916,345 ÷ 25,055 = 36.57
2 Click competitor name to see calculations.
- Earnings before fixed charges and tax
- The earnings before fixed charges and tax demonstrated a significant upward trend overall. Starting with a negative value of -71,514 thousand USD in 2019, it sharply improved to a positive 333,836 thousand USD in 2020. This expansion continued through 2021, reaching 602,950 thousand USD. However, there was a noticeable decline in 2022 where earnings dropped substantially to 35,457 thousand USD. The earnings rebounded strongly in 2023, attaining the highest value of 916,345 thousand USD over the five-year period.
- Fixed charges
- Fixed charges showed a consistent decrease over the five-year span. Beginning at 48,899 thousand USD in 2019, fixed charges steadily declined each year to reach 25,055 thousand USD by 2023. This downward trajectory suggests improved management or reduction of fixed financial obligations across the years.
- Fixed charge coverage ratio
- The fixed charge coverage ratio exhibited substantial volatility but an overall improvement trend. In 2019, the ratio was negative (-1.46), reflecting insufficient earnings to cover fixed charges. It then improved significantly to 7.8 in 2020, followed by a further increase to 19.58 in 2021. A steep decline to 1.32 was observed in 2022, indicating relative difficulty in covering fixed charges that year. Subsequently, the ratio surged dramatically to 36.57 in 2023, indicating a strong capacity to meet fixed financial commitments.