First Solar Inc (FSLR)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	3,318,600	2,619,320	2,923,380	2,711,330	3,063,120
Property, plant and equipment	US$ in thousands	4,397,280	3,536,900	2,649,590	2,402,280	2,181,150
Fixed asset turnover		0.75	0.74	1.10	1.13	1.40

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $3,318,600K ÷ $4,397,280K
= 0.75

First Solar Inc's fixed asset turnover ratio has shown a declining trend over the past five years, starting at 1.15 in 2019 and decreasing to 0.75 in 2023. This indicates that the company is generating less revenue per dollar of fixed assets invested. A lower fixed asset turnover could suggest inefficiencies in the utilization of the company's fixed assets to generate sales. It may be due to underutilization of assets, asset impairment, or changes in the company's operating efficiency or business model. Further investigation into the reasons for the decline in fixed asset turnover is recommended to assess the company's operational performance and asset utilization efficiency.