First Solar Inc (FSLR)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	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	878,999	1,221,570	1,013,400
Short-term investments	US$ in thousands	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	661,552	807,561	1,103,810
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
Cash ratio		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	2.02	2.41	2.53

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,946,990K + $155,495K) ÷ $1,306,160K
= 1.61

The cash ratio of First Solar Inc has shown a decreasing trend over the past four quarters, starting at 2.71 in Q4 2022 and declining to 1.85 in Q4 2023. This indicates that the company's ability to cover its short-term liabilities with its cash and cash equivalents has weakened.

Although the cash ratio remains above 1 in all quarters, indicating that the company has sufficient liquid assets to cover its current liabilities, the decreasing trend raises some concerns about its liquidity position. It is important for the company to closely monitor its cash management practices to ensure that it maintains a healthy cash ratio and can meet its short-term obligations effectively.