First Solar Inc (FSLR)

Working capital 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
Revenue (ttm)	US$ in thousands	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	2,354,981	2,484,395	2,208,757
Total current assets	US$ in thousands	4,634,810	3,824,000	3,660,730	3,619,860	3,791,420	3,338,750	3,383,420	2,994,990	3,191,240	3,046,320	3,155,480	3,136,890	3,014,540	2,800,490	2,731,180	2,747,840	3,599,830	3,043,490	3,412,250	3,662,830
Total current liabilities	US$ in thousands	1,306,160	1,199,100	1,090,610	1,174,170	1,038,050	816,268	803,554	734,990	726,878	715,236	660,923	669,341	847,398	731,091	747,036	732,435	1,318,210	760,806	843,319	836,516
Working capital turnover		1.00	1.20	1.16	1.15	0.95	1.00	0.96	1.10	1.19	1.13	1.19	1.21	1.25	1.69	1.57	1.52	1.34	1.03	0.97	0.78

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $3,318,599K ÷ ($4,634,810K – $1,306,160K)
= 1.00

The working capital turnover ratio for First Solar Inc has fluctuated over the past eight quarters. The ratio measures how efficiently the company is utilizing its working capital to generate sales revenue.

In Q4 2023, the working capital turnover was 1.00, indicating that the company generated $1 in revenue for every $1 of working capital invested. This ratio improved from the previous quarter, where it was 0.95 in Q4 2022.

The highest working capital turnover ratio was observed in Q3 2023 at 1.20, suggesting that the company became more efficient in utilizing its working capital to generate sales during that period. Conversely, the lowest working capital turnover ratio was seen in Q2 2022 at 0.96.

Overall, the trend in the working capital turnover ratio for First Solar Inc shows some variability, with some quarters demonstrating better efficiency in utilizing working capital than others. Analysis of the trend over a longer period could provide more insights into the company's working capital management effectiveness.