First Solar Inc (FSLR)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	1,621,380	1,946,990	1,481,270	1,450,650	1,227,000
Short-term investments	US$ in thousands	171,583	155,495	1,096,710	375,389	520,066
Total current liabilities	US$ in thousands	2,077,440	1,306,160	1,038,050	726,878	847,398
Cash ratio		0.86	1.61	2.48	2.51	2.06

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,621,380K + $171,583K) ÷ $2,077,440K
= 0.86

The cash ratio of First Solar Inc has shown a generally positive trend over the years, indicating a healthy ability to cover short-term liabilities with its cash and cash equivalents. As of December 31, 2020, the cash ratio stood at 2.06, reflecting a strong position. This ratio improved to 2.51 by the end of December 31, 2021, showing an increase in liquidity. However, there was a slight decrease to 2.48 by December 31, 2022. A more significant decline was observed by December 31, 2023, with the ratio dropping to 1.61, potentially signaling a decrease in liquidity. The trend worsened further by December 31, 2024, with the cash ratio falling to 0.86, indicating a potential challenge in meeting short-term obligations solely with cash on hand. Further investigation into the company's cash management practices and operational efficiency may be warranted to address this declining trend.