First Solar Inc (FSLR)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,318,600 | 2,619,320 | 2,923,380 | 2,711,330 | 3,063,120 |
| Receivables | US$ in thousands | 1,342,320 | 324,337 | 429,436 | 292,759 | 660,969 |
| Receivables turnover | 2.47 | 8.08 | 6.81 | 9.26 | 4.63 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $3,318,600K ÷ $1,342,320K
= 2.47
The receivables turnover ratio of First Solar Inc has exhibited fluctuations over the last five years. In 2023, the ratio decreased significantly to 2.39 from 7.38 in 2022. This may indicate a slowdown in the collections of receivables compared to the previous year. However, it is important to note that the ratio is still above 1, suggesting that the company is able to collect its outstanding receivables multiple times during the year.
Comparing 2023 to 2021 and 2020, the receivables turnover ratio remains lower at 2.39, indicating a potential trend of slower collection of receivables in recent years. In 2021 and 2020, the ratios were 6.43 and 9.21 respectively, showcasing a more efficient collection process during those years.
In comparison to 2019, the receivables turnover ratio in 2023 is higher at 2.39 versus 4.30, suggesting a more efficient collections process in the current year despite the decline from the previous year.
Overall, the trends in the receivables turnover ratio indicate fluctuations in the efficiency of collecting outstanding receivables, which can be influenced by factors such as changes in credit policies, customer payment patterns, and overall economic conditions. Further analysis and comparison with industry benchmarks may provide additional insights into the company's receivables management performance.
Peer comparison
Dec 31, 2023