First Solar Inc (FSLR)

Receivables 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
Revenue (ttm)	US$ in thousands	4,354,356	3,641,416	3,564,421	3,318,599	3,162,439	2,990,282	2,800,564	2,619,318	2,524,247	2,478,818	2,487,043	2,923,377	2,625,290	2,969,351	2,982,582	2,711,332	3,501,480	3,120,721	3,063,266	3,063,120
Receivables	US$ in thousands	1,686,610	790,597	876,306	1,342,320	775,320	682,635	298,620	324,337	325,421	454,431	293,357	429,436	248,341	583,028	790,096	292,759	296,784	334,069	387,036	660,969
Receivables turnover		2.58	4.61	4.07	2.47	4.08	4.38	9.38	8.08	7.76	5.45	8.48	6.81	10.57	5.09	3.77	9.26	11.80	9.34	7.91	4.63

December 31, 2024 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $4,354,356K ÷ $1,686,610K
= 2.58

The receivables turnover ratio for First Solar Inc has shown fluctuations over the past years. The ratio measures how effectively the company is managing its accounts receivable by converting them into cash.

In December 2019, the receivables turnover ratio was 4.63, indicating that the company collected its receivables approximately 4.63 times during the year. The ratio increased to 11.80 by September 30, 2020, suggesting an improvement in collection efficiency. However, there was a decrease to 3.77 on March 31, 2021, which may signal delays in collecting payments from customers.

The ratio recovered to 10.57 on September 30, 2021, showing better receivables management. Subsequently, there were fluctuations in the ratio, with values ranging from 2.47 on December 31, 2023, to 9.38 on March 31, 2023. The ratio was relatively stable around 4 to 8 in the later years.

Overall, a higher receivables turnover ratio indicates that First Solar Inc is efficient in collecting payments from customers, while a lower ratio may indicate potential issues with credit policies or difficulties in collecting receivables promptly. Monitoring this ratio over time can provide insights into the company's cash flow and liquidity management.