First Solar Inc (FSLR)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	1,621,380	1,005,130	1,682,080	1,946,990	1,492,960	829,913	906,634	1,481,270	1,150,980	1,701,220	1,326,360	1,450,650	1,367,460	1,346,890	972,879	1,227,000	1,277,050	1,052,700	929,355	1,352,740
Short-term investments	US$ in thousands	171,583	264,691	308,016	155,495	329,516	1,054,040	1,364,610	1,096,710	776,213	143,944	223,091	375,389	554,601	418,505	562,735	520,066	353,819	494,080	579,340	811,506
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
Cash ratio		0.86	0.71	1.13	1.61	1.52	1.73	1.93	2.48	2.36	2.30	2.11	2.51	2.69	2.67	2.29	2.06	2.23	2.07	2.06	1.64

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 fluctuating trends over the years. As of December 31, 2019, the cash ratio was 1.64, indicating that the company had $1.64 in cash and cash equivalents for every $1 of current liabilities.

The ratio improved in the subsequent quarters, reaching a peak of 2.69 on September 30, 2021, suggesting a strong ability to cover short-term obligations with cash on hand. However, by March 31, 2024, the cash ratio dropped to 1.13, indicating a decline in the company's liquidity position.

Notably, by the end of December 31, 2024, the cash ratio slightly recovered to 0.86. This decrease may raise concerns about First Solar's ability to meet its short-term financial obligations using its available cash reserves. It could be beneficial for the company to further monitor and manage its cash position to ensure liquidity sustainability in the future.