First Solar Inc (FSLR)

Working capital 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
Total current assets	US$ in thousands	5,089,030	3,818,100	4,241,390	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
Total current liabilities	US$ in thousands	2,077,440	1,782,160	1,758,720	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
Working capital turnover		1.45	1.79	1.44	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

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $4,354,356K ÷ ($5,089,030K – $2,077,440K)
= 1.45

First Solar Inc's working capital turnover provides insight into how efficiently the company is managing its working capital to generate revenue. Over the past few years, the trend in the working capital turnover shows variability.

From December 31, 2019, to September 30, 2021, the working capital turnover gradually increased from 1.34 to 1.13, indicating improved efficiency in utilizing working capital to generate sales. However, there was a slight decline by December 31, 2021, which might raise concerns about the company's ability to efficiently convert working capital into sales.

From March 31, 2022, to June 30, 2023, the working capital turnover continued to decline, reaching its lowest point of 0.95 by December 31, 2022. This downward trend suggests potential inefficiencies in working capital management during this period.

The working capital turnover began to show signs of improvement from March 31, 2023, onwards, reaching 1.79 by September 30, 2024. This increase indicates that the company was able to enhance its working capital efficiency, possibly through better inventory management or collection of receivables.

Overall, the fluctuations in First Solar Inc's working capital turnover reflect the company's efforts to optimize the utilization of its working capital over the years, with periods of both improvement and decline. Further analysis of the underlying factors driving these changes would be beneficial to understand the company's operational performance better.