First Solar Inc (FSLR)

Payables turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	2,348,420	2,017,920	2,549,460	2,193,420	2,030,660
Payables	US$ in thousands	482,190	207,178	341,409	193,374	183,349
Payables turnover		4.87	9.74	7.47	11.34	11.08

December 31, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $2,348,420K ÷ $482,190K
= 4.87

The payables turnover ratio for First Solar Inc has shown fluctuations over the past five years. In December 2020, the payables turnover ratio was 11.08, indicating that the company was able to pay off its suppliers approximately 11 times during that year.

This ratio increased slightly to 11.34 by December 2021, suggesting a more efficient management of accounts payable. However, in December 2022, the payables turnover ratio decreased to 7.47, which could imply a slower rate of paying off suppliers compared to the previous years.

By December 2023, the ratio improved to 9.74, showing a more favorable trend in managing payables. Nonetheless, in December 2024, the payables turnover ratio dropped significantly to 4.87, indicating a potential delay in settling obligations to suppliers.

Overall, fluctuations in the payables turnover ratio of First Solar Inc over the period analyzed reflect varying efficiencies in managing accounts payable and highlight the importance of closely monitoring payment practices to maintain good supplier relationships and manage working capital effectively.