First Solar Inc (FSLR)

Receivables turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	4,206,290	3,318,600	2,619,320	2,923,380	2,711,330
Receivables	US$ in thousands	1,686,610	1,342,320	324,337	429,436	292,759
Receivables turnover		2.49	2.47	8.08	6.81	9.26

December 31, 2024 calculation

Receivables turnover = Revenue ÷ Receivables
= $4,206,290K ÷ $1,686,610K
= 2.49

The receivables turnover ratio for First Solar Inc has shown fluctuations over the past five years. In 2020, the ratio was 9.26, indicating that the company collected its receivables almost 9 times during the year. However, this ratio decreased to 6.81 in 2021 and then slightly increased to 8.08 in 2022.

A significant decline was observed in 2023, with the ratio dropping to 2.47, suggesting that the company took longer to collect its outstanding receivables during that period. This trend continued in 2024, with the ratio remaining low at 2.49.

The rapid decrease in the receivables turnover ratio in recent years may raise concerns about the company's ability to efficiently collect its receivables. It would be essential for First Solar Inc to assess its credit policies, collection procedures, and customer creditworthiness to improve its receivables turnover and maintain healthy cash flows.