First Solar Inc (FSLR)

Days of sales outstanding (DSO)

		Dec 31, 2024	Sep 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
Receivables turnover		2.58	4.61	4.07	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
DSO	days	141.38	79.25	89.73	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

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 2.58
= 141.38

Days Sales Outstanding (DSO) is a measure that indicates the average number of days a company takes to collect payment after making a sale. A lower DSO value generally suggests that the company is efficient in collecting its accounts receivable, while a higher DSO value may indicate potential issues with collections and cash flow management.

Analyzing the DSO trend for First Solar Inc from December 31, 2019, to December 31, 2024, reveals fluctuations in the efficiency of the company's accounts receivable management. The DSO decreased from 78.76 days on December 31, 2019, to a low of 30.94 days on September 30, 2020, signaling an improvement in the company's collection process.

However, the trend reversed with an increase in DSO to 147.64 days by December 31, 2023, which could raise concerns about the company's ability to collect payments promptly. Subsequent periods saw fluctuating DSO values, with the measure ranging between 38.92 and 141.38 days by December 31, 2024.

Overall, the analysis of First Solar Inc's DSO highlights the importance of closely monitoring accounts receivable management practices to ensure timely cash inflows and maintain healthy liquidity levels.