FSLR has been successfully added to your Stock Email Alerts list.
You can manage your stock email alerts here.
FSLR has been removed from your Stock Email Alerts list.
Please enter Portfolio Name for new portfolio.
Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in Earnings Before Interest and Taxes (EBIT). First Solar's Degree of Financial Leverage for the quarter that ended in Dec. 2023 was -0.47. The higher Degree of Financial Leverage, the more volatile earnings will be.
The industry rank for First Solar's Degree of Financial Leverage or its related term are showing as below:
The historical data trend for First Solar's Degree of Financial Leverage 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.
First Solar Annual Data | |||||||||||||||||||||
Trend | Dec14 | Dec15 | Dec16 | Dec17 | Dec18 | Dec19 | Dec20 | Dec21 | Dec22 | Dec23 | |||||||||||
Degree of Financial Leverage | Get a 7-Day Free Trial | 1.08 | 1.00 | 0.21 | 1.13 | -0.47 |
First Solar Quarterly Data | ||||||||||||||||||||
Mar19 | Jun19 | Sep19 | Dec19 | Mar20 | Jun20 | Sep20 | Dec20 | Mar21 | Jun21 | Sep21 | Dec21 | Mar22 | Jun22 | Sep22 | Dec22 | Mar23 | Jun23 | Sep23 | Dec23 | |
Degree of Financial Leverage | Get a 7-Day Free Trial | 1.13 | 1.44 | 0.37 | 2.41 | -0.47 |
For the Solar subindustry, First Solar's Degree of Financial Leverage, along with its competitors' market caps and Degree of Financial Leverage 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.
For the Semiconductors industry and Technology sector, First Solar's Degree of Financial Leverage distribution charts can be found below:
* The bar in red indicates where First Solar's Degree of Financial Leverage falls into.
First Solar's Degree of Financial Leverage for the quarter that ended in Dec. 2023 is calculated as:
Degree of Financial Leverage | = | % Change in Earnings per Share (Diluted)** | / | % Change in EBIT |
= | ( 7.74 (Dec. 2023) / -0.41 (Dec. 2022) - 1 ) | / | ( 904.255 (Dec. 2023) / 20.823 (Dec. 2022) - 1 ) | |
= | -19.878 | / | 42.4258 | |
= | -0.47*** |
* 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.
** TTM data of EPS and EBIT was used to calculate Degree of Financial Leverage.
*** Please be aware that the Degree of Financial Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
First Solar (NAS:FSLR) Degree of Financial Leverage Explanation
Degree of Financial Leverage (DFL) is a leverage ratio that measures the sensitivity of a company’s Earnings per Share (EPS) to fluctuations in its operating income, also referred to as Earnings Before Interest and Taxes (EBIT), resulting from adjustments in its capital structure. DFL is an essential tool for companies to assess the appropriate level of debt or financial leverage in their capital structure. When EBIT remains relatively stable, it results in stable earnings and earnings per share. In such cases, the company may consider taking on substantial debt. However, for companies operating in industries with significant fluctuations in EBIT, it is advisable to keep debt at a manageable level.
The higher Degree of Financial Leverage, the more volatile earnings will be. Because interest is a fixed expense, leverage can amplify earnings and EPS. This is beneficial when EBIT is growing, but it can become problematic in tough economic conditions when EBIT is under pressure.
Be Aware
The use of financial leverage varies across different industries and business sectors, and the application of Degree of Financial Leverage (DFL) should be adjusted accordingly.
Thank you for viewing the detailed overview of First Solar's Degree of Financial Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.
Georges Antoun | officer: Chief Operating Officer | C/O FIRST SOLAR, INC., 350 WEST WASHINGTON ST., SUITE 600, TEMPE AZ 85281 |
Kuntal Kumar Verma | officer: Chief Mfg. Engineering Officer | 28101 CEDAR PARK BLVD., PERRYSBURG OH 43551 |
Alexander R. Bradley | officer: Chief Financial Officer | 77 RIO ROBLES, SAN JOSE CA 95134 |
Markus Gloeckler | officer: Co-Chief Technology Officer | 28101 CEDAR PARK BLVD., PERRYSBURG OH 43551 |
R Craig Kennedy | director | 1844 "R" STREET, NW, WASHINGTON DC 20009 |
Mark R Widmar | officer: Chief Financial Officer | C/O GRAFTECH INTERNATIONAL LTD, 12900 SNOW ROAD, PARMA OH 44130 |
Michael T Sweeney | director | GOLDNER HAWN, 3700 WELLS FARGO CENTER, 90 SOUTH 7TH ST, MINNEAPOLIS MN 55402 |
William J Post | director | 400 NORTH FIFTH STREET, ., PHOENIX AZ 85004 |
Paul H Stebbins | director | C/O WORLD FUEL SERVICES CORP, 9800 N.W. 41ST STREET, SUITE 400, MIAMI FL 33178 |
Byron Michael Jeffers | officer: CAO, Interim | 350 WEST WASHINGTON ST., TEMPE AZ 85281 |
Richard D Chapman | director | 350 WEST WASHINGTON STREET, SUITE 600, TEMPE AZ 85281 |
Jason E. Dymbort | officer: General Counsel, Interim | 77 RIO ROBLES, SAN JOSE CA 95134 |
Norman L. Wright | director | 26335 N. 104TH WAY, SCOTTSDALE AZ 85255 |
Patrick James Buehler | officer: Chief Quality and Rel. Officer | 28101 CEDAR PARK BLVD., PERRYSBURG OH 43551 |
Michael Koralewski | officer: Chief Mfg. Operations Officer | 28101 CEDAR PARK BLVD., PERRYSBURG OH 43551 |
From GuruFocus
By GuruFocus Research • 01-23-2024
By GuruFocus Research • 01-23-2024
By GuruFocus Research • 01-23-2024
By GuruFocus Research • 01-23-2024
By GuruFocus Research • 01-23-2024
By Business Wire • 12-27-2023
By GuruFocus Research • 01-23-2024
By GuruFocus Research • 01-23-2024
By GuruFocus Research • 01-23-2024
By Business Wire • 01-11-2024
Disclaimers: GuruFocus.com is not operated by a broker or a dealer. It has an affiliated registered investment adviser, which serves as the subadviser to an exchange traded fund. This investment adviser does not provide advice to individual investors. Under no circumstances does any information posted on GuruFocus.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The individuals or entities selected as "gurus" may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. Gurus may be added or dropped from the GuruFocus site at any time. In no event shall GuruFocus.com be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on GuruFocus.com, or relating to the use of, or inability to use, GuruFocus.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. The gurus listed in this website are not affiliated with GuruFocus.com, LLC. Stock quotes provided by InterActive Data. Fundamental company data provided by Morningstar, updated daily.