First Solar Inc (FSLR)

Days of sales outstanding (DSO)

		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
Receivables turnover		2.47	4.08	4.38	9.38	8.08	7.76	5.45	8.48	6.81	10.57	5.09	3.77	9.26	11.80	9.34	7.91	4.63	4.46	6.26	3.40
DSO	days	147.64	89.49	83.32	38.92	45.20	47.06	66.91	43.05	53.62	34.53	71.67	96.69	39.41	30.94	39.07	46.12	78.76	81.75	58.27	107.31

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 2.47
= 147.64

First Solar Inc's Days of Sales Outstanding (DSO) measures the average number of days it takes the company to collect payment for its sales. Looking at the trend over the last eight quarters, we observe fluctuations in DSO. In Q4 2023, the DSO increased significantly to 152.42 days from 90.85 days in Q3 2023, indicating that the company took longer to collect receivables. This may suggest potential issues with collecting payments efficiently, leading to increased credit risk or liquidity constraints.

Comparing Q4 2023 to previous quarters, the DSO has shown an upward trend since Q1 2022, where it was at 47.27 days. This significant increase in DSO over the quarters may raise concerns about the company's credit and collection policies or the creditworthiness of its customers.

It is essential for First Solar Inc to monitor and manage its DSO effectively to ensure timely collection of receivables and maintain healthy cash flow. Strategies to improve DSO could include streamlining billing processes, monitoring receivables closely, and implementing effective credit control measures.