First Solar Inc (FSLR)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 4,634,810 | 3,791,420 | 3,191,240 | 3,014,540 | 3,599,830 |
| Total current liabilities | US$ in thousands | 1,306,160 | 1,038,050 | 726,878 | 847,398 | 1,318,210 |
| Current ratio | 3.55 | 3.65 | 4.39 | 3.56 | 2.73 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $4,634,810K ÷ $1,306,160K
= 3.55
The current ratio of First Solar Inc has shown a positive trend over the past five years, indicating the company's ability to meet its short-term liabilities with its current assets. The current ratio was 3.55 as of December 31, 2023, which was slightly lower compared to the previous year's ratio of 3.65. However, the ratio remained at a healthy level above 3, demonstrating a strong liquidity position.
In 2021, the current ratio increased significantly to 4.39, reflecting an improvement in the company's short-term liquidity and ability to cover its current obligations. This was a notable improvement compared to the previous years.
In 2020 and 2019, the current ratio was 3.56 and 2.73 respectively, showing variability in the company's liquidity position over these years. The ratio in 2019 was below 3, indicating a relatively weaker liquidity position compared to the more recent years.
Overall, the current ratio of First Solar Inc has generally been above 3 in recent years, suggesting a strong ability to cover short-term obligations with current assets. Investors and creditors may view this trend positively as it indicates a healthy balance between current assets and liabilities.
Peer comparison
Dec 31, 2023