First Solar Inc (FSLR)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	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	2,041,014	2,179,664	1,989,266
Inventory	US$ in thousands	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	576,770	586,621	459,472
Inventory turnover		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	3.54	3.72	4.33

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,017,923K ÷ $819,899K
= 2.46

First Solar Inc's inventory turnover has shown fluctuation over the past eight quarters. The inventory turnover ratio measures the efficiency of a company in managing its inventory levels. A higher ratio indicates that the company is selling its inventory more quickly.

In Q4 2022, First Solar had an inventory turnover ratio of 4.10, signifying that it turned over its inventory 4.10 times during the quarter. This was the highest turnover ratio in the data provided, indicating efficient inventory management.

In contrast, the inventory turnover ratio decreased to 2.30 in Q1 2022, reflecting slower inventory turnover during that period. However, over the following quarters, this ratio gradually improved, reaching a peak of 3.50 in Q1 2023 before slightly declining to 2.46 in Q4 2023.

The overall trend indicates that First Solar has been able to effectively manage its inventory levels, with some fluctuations in turnover ratios. The company should continue monitoring its inventory turnover to ensure optimal efficiency in its operations.