First Solar Inc (FSLR)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	3,318,599	3,162,439	2,990,282	2,800,564	2,619,318	2,524,247	2,478,818	2,487,043	2,923,377	2,625,290	2,969,351	2,982,582	2,711,332	3,501,480	3,120,721	3,063,266	3,063,120	2,354,981	2,484,395	2,208,757
Property, plant and equipment	US$ in thousands	4,397,280	4,072,860	4,020,180	3,858,600	3,536,900	3,124,080	2,988,980	2,785,820	2,649,590	2,505,920	2,396,640	2,397,990	2,402,280	2,386,590	2,324,410	2,244,180	2,181,150	2,106,970	2,006,330	1,859,290
Fixed asset turnover		0.75	0.78	0.74	0.73	0.74	0.81	0.83	0.89	1.10	1.05	1.24	1.24	1.13	1.47	1.34	1.36	1.40	1.12	1.24	1.19

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $3,318,599K ÷ $4,397,280K
= 0.75

The fixed asset turnover ratio for First Solar Inc fluctuated over the past eight quarters, ranging from 0.73 to 0.83. The ratio indicates how effectively the company generates revenue from its fixed assets. A higher ratio signifies better asset utilization, while a lower ratio may suggest inefficiency in utilizing fixed assets to generate revenue.

The decrease in the fixed asset turnover ratio from Q1 2022 to Q4 2023 indicates a potential decline in the company's ability to generate sales from its fixed assets during this period. It is important for the company to closely monitor this trend to ensure efficient utilization of resources.

Overall, the trend in the fixed asset turnover ratio for First Solar Inc over the past eight quarters warrants further investigation to understand the underlying factors influencing the company's asset utilization efficiency.