First Solar Inc (FSLR)

Fixed asset turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	4,206,290	3,318,600	2,619,320	2,923,380	2,711,330
Property, plant and equipment	US$ in thousands	5,413,680	4,397,280	3,536,900	2,649,590	2,402,280
Fixed asset turnover		0.78	0.75	0.74	1.10	1.13

December 31, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $4,206,290K ÷ $5,413,680K
= 0.78

First Solar Inc's fixed asset turnover ratio has experienced a decline over the years. In December 31, 2020, the ratio stood at 1.13, indicating that the company generated $1.13 in sales for every dollar invested in fixed assets. However, this ratio decreased to 1.10 by December 31, 2021, and further dropped to 0.74 by December 31, 2022. This indicates that the company's efficiency in utilizing its fixed assets to generate revenue has decreased significantly during these periods.

Although there was a slight improvement in the fixed asset turnover ratio to 0.75 by December 31, 2023, and then to 0.78 by December 31, 2024, the ratio still remains below the levels seen in the earlier years. This downward trend may suggest inefficiencies in the company's asset utilization or changes in its business operations that have impacted its ability to generate sales from its fixed assets. Further analysis and examination of the company's operational strategies and asset management practices may be warranted to address and improve this declining trend in fixed asset turnover.