First Solar Inc (FSLR)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		2.17	2.46	4.10	3.29	3.58
DOH	days	168.54	148.30	88.96	110.88	102.02

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.17
= 168.54

First Solar Inc's days of inventory on hand (DOH) has shown some fluctuation over the years as follows:
- As of December 31, 2020, the DOH was 102.02 days.
- By December 31, 2021, the DOH increased to 110.88 days.
- Subsequently, by December 31, 2022, the DOH decreased to 88.96 days.
- However, by December 31, 2023, there was a significant increase in DOH to 148.30 days.
- The trend continued with a further increase in DOH to 168.54 days by December 31, 2024.

The increase in DOH indicates that First Solar Inc may be taking longer to sell its inventory, which could tie up working capital and potentially indicate inefficiencies in inventory management. It's important for the company to monitor its inventory levels closely and optimize its inventory turnover to ensure efficient operations and maximize profitability.