First Solar Inc (FSLR)

Payables 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
Payables	US$ in thousands	482,190	265,320	239,237	207,178	110,795	245,834	285,760	341,409	188,280	160,963	146,233	193,374	170,041	148,326	186,087	183,349	153,925	158,800	173,762	218,081
Payables turnover		5.17	7.43	8.48	9.74	20.79	10.11	9.20	7.47	12.05	13.17	13.20	11.34	11.66	14.55	11.86	11.08	17.20	15.25	13.95	11.53

December 31, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $2,493,352K ÷ $482,190K
= 5.17

The payables turnover ratio is a financial metric that indicates how efficiently a company manages its accounts payable by measuring how many times a company pays off its suppliers in a given period.

Analyzing the payables turnover of First Solar Inc over the reported periods shows fluctuations in the efficiency of the company's payables management.

- The payables turnover ratio increased from 11.53 on December 31, 2019, to a peak of 20.79 on September 30, 2023, signifying an improvement in managing payables during this period.
- However, after reaching its peak, the ratio declined to 5.17 on December 31, 2024, indicating a significant reduction in the number of times the company was able to pay off its suppliers.

This fluctuation in the payables turnover ratio may suggest changes in the company's payment terms, supplier relationships, or operational efficiency. A decreasing payables turnover ratio could indicate potential liquidity issues or a strain on the company's cash flow, while an increasing ratio might imply more efficient management of working capital.

Further analysis of the reasons behind these fluctuations, along with comparisons to industry benchmarks and historical trends, would provide a more in-depth understanding of First Solar Inc's payables management performance.