First Solar Inc (FSLR)
Number of days of payables
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 9.74 | 7.47 | 11.34 | 11.08 | 11.53 | |
| Number of days of payables | days | 37.47 | 48.88 | 32.18 | 32.96 | 31.66 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 9.74
= 37.47
First Solar Inc's number of days of payables has fluctuated over the past five years. The trend indicates that the company takes, on average, around 37 to 49 days to pay its suppliers for goods and services received.
The decrease in the number of days of payables from 2022 to 2023 suggests that First Solar Inc may be managing its payables more efficiently, potentially negotiating better payment terms with its suppliers or improving its working capital management.
Comparing the data to 2019, the number of days of payables has increased slightly, pointing to a possible lengthening of the payment cycle. This shift could have various implications, such as strained relationships with suppliers or a need to preserve cash during that period.
Overall, tracking the number of days of payables provides insights into First Solar Inc's liquidity management and its ability to maintain relationships with suppliers while effectively managing cash flow.
Peer comparison
Dec 31, 2023