First Solar Inc (FSLR)

Working capital 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
Total current assets	US$ in thousands	5,089,030	4,634,810	3,791,420	3,191,240	3,014,540
Total current liabilities	US$ in thousands	2,077,440	1,306,160	1,038,050	726,878	847,398
Working capital turnover		1.40	1.00	0.95	1.19	1.25

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $4,206,290K ÷ ($5,089,030K – $2,077,440K)
= 1.40

First Solar Inc's working capital turnover has shown fluctuations over the years based on the provided data. The working capital turnover ratio is used to measure how efficiently a company is utilizing its working capital to generate revenue.

In December 31, 2020, the working capital turnover ratio was 1.25, indicating that the company generated $1.25 in revenue for every dollar of working capital invested. This suggests a reasonable level of efficiency in managing its working capital during that period.

However, by December 31, 2021, the working capital turnover ratio decreased to 1.19, which may suggest a slight decline in efficiency in utilizing working capital to generate revenue.

In December 31, 2022, the ratio dropped further to 0.95, indicating a significant decrease in the efficiency of working capital utilization, possibly highlighting inefficiencies in managing or deploying working capital during that financial period.

By December 31, 2023, the ratio improved to 1.00, showing a slight recovery in the efficient utilization of working capital to generate revenue.

Finally, as of December 31, 2024, the working capital turnover ratio increased to 1.40, potentially signifying enhanced efficiency in converting working capital into revenue, suggesting improved management of working capital in the most recent financial year.

Overall, fluctuations in the working capital turnover ratio over the years suggest varying levels of efficiency in how First Solar Inc has managed its working capital to support its business operations and revenue generation.