First Solar Inc (FSLR)

Payables 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
Payables	US$ in thousands	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	218,088	242,541	221,738
Payables turnover		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	9.36	8.99	8.97

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $2,017,923K ÷ $207,178K
= 9.74

The payables turnover ratio for First Solar Inc has shown some fluctuations over the past eight quarters. In Q3 2023, the company's payables turnover ratio was 20.79, indicating that the company took approximately 20.79 days to pay its suppliers on average during the quarter. This was a significant increase from the previous quarter's ratio of 9.74 in Q4 2023.

The highest payables turnover ratio was observed in Q2 2022 at 13.20, indicating that the company was able to pay off its suppliers more frequently during that period. On the other hand, the lowest ratio was recorded in Q4 2022 at 7.47, suggesting that the company took longer to pay its suppliers during that quarter.

Overall, an increasing payables turnover ratio can indicate that the company is managing its payables more efficiently and may have strong bargaining power with its suppliers. Conversely, a decreasing ratio may signal that the company is taking longer to pay its suppliers, which could potentially strain supplier relationships or indicate cash flow problems.