First Solar Inc (FSLR)

Inventory turnover

		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
Cost of revenue (ttm)	US$ in thousands	2,493,352	1,971,897	2,029,793	2,017,923	2,303,181	2,486,217	2,630,119	2,549,461	2,268,513	2,119,486	1,930,393	2,193,423	1,981,965	2,157,591	2,207,480	2,030,659	2,647,107	2,421,000	2,423,823	2,513,903
Inventory	US$ in thousands	1,084,380	1,250,630	970,871	819,899	882,787	756,173	751,407	621,376	810,660	810,461	840,750	666,299	647,439	603,057	550,270	567,587	567,785	518,242	479,792	443,513
Inventory turnover		2.30	1.58	2.09	2.46	2.61	3.29	3.50	4.10	2.80	2.62	2.30	3.29	3.06	3.58	4.01	3.58	4.66	4.67	5.05	5.67

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,493,352K ÷ $1,084,380K
= 2.30

Inventory turnover is a key financial ratio that measures how efficiently a company manages its inventory by evaluating how many times it sells and replaces its inventory during a specific period. For First Solar Inc, the inventory turnover has shown fluctuations over the years based on the provided data.

The inventory turnover for First Solar Inc stood at 5.67 as of December 31, 2019, indicating that the company sold and replaced its inventory approximately 5.67 times during that year. However, the metric decreased to 2.09 as of March 31, 2024, suggesting a decline in the efficiency of managing inventory during that period.

The trend in inventory turnover for First Solar Inc fluctuated between 2019 and 2024, with peaks and troughs observed over different quarters. A decline in inventory turnover could reflect issues such as overstocking, slow sales, or inefficient inventory management practices.

It is essential for First Solar Inc to closely monitor its inventory turnover ratio to ensure optimal inventory management efficiency. A lower inventory turnover ratio may indicate potential issues in inventory control, while a higher ratio could suggest strong sales and effective inventory management strategies. Monitoring this ratio over time can help the company make informed decisions regarding inventory levels, purchasing, and sales strategies.