First Solar Inc (FSLR)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 5,089,030 | 4,634,810 | 3,791,420 | 3,191,240 | 3,014,540 |
| Total current liabilities | US$ in thousands | 2,077,440 | 1,306,160 | 1,038,050 | 726,878 | 847,398 |
| Current ratio | 2.45 | 3.55 | 3.65 | 4.39 | 3.56 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $5,089,030K ÷ $2,077,440K
= 2.45
The current ratio of First Solar Inc has shown a generally positive trend over the past five years, starting at 3.56 in December 31, 2020 and increasing to 4.39 by December 31, 2021. This improvement indicates that the company's current assets relative to its current liabilities have strengthened significantly. However, in the subsequent years, the current ratio experienced some fluctuations, declining to 3.65 by December 31, 2022, further dropping to 3.55 by December 31, 2023, and notably decreasing to 2.45 by December 31, 2024.
Overall, the company's current ratio remains above 1, indicating that First Solar Inc has sufficient current assets to cover its current liabilities. However, the downward trend in recent years may suggest a potential liquidity concern or changes in the company's ability to meet short-term obligations. Further analysis of the components contributing to current assets and liabilities is recommended to better understand the underlying factors influencing the current ratio dynamics.
Peer comparison
Dec 31, 2024