First Solar Inc (FSLR)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,017,920 | 2,549,460 | 2,193,420 | 2,030,660 | 2,513,900 |
| Payables | US$ in thousands | 207,178 | 341,409 | 193,374 | 183,349 | 218,081 |
| Payables turnover | 9.74 | 7.47 | 11.34 | 11.08 | 11.53 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $2,017,920K ÷ $207,178K
= 9.74
The payables turnover ratio for First Solar Inc has fluctuated over the past five years, ranging from 7.47 to 11.53. This ratio measures how many times a company pays off its accounts payable during a specific period. A higher payables turnover ratio indicates that the company is efficiently managing its accounts payable by paying them off more frequently.
In 2023, the payables turnover ratio increased to 9.74 from 7.47 in 2022, indicating that First Solar Inc improved its ability to settle its accounts payable faster during the year. This could be a positive sign of effective cash management and strong vendor relationships.
Comparing the payables turnover ratio to previous years, it is noted that in 2021, the ratio was at its highest at 11.34 before slightly decreasing in 2022. Despite the fluctuations, the company has generally maintained a healthy payables turnover ratio, suggesting a consistent approach to managing its payables.
Overall, the trend in the payables turnover ratio for First Solar Inc indicates efficient management of accounts payable, with the company showing the ability to promptly settle its obligations to suppliers over the years.
Peer comparison
Dec 31, 2023