First Solar Inc (FSLR)

Liquidity ratios

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
Current ratio 3.55 3.19 3.36 3.08 3.65 4.09 4.21 4.07 4.39 4.26 4.77 4.69 3.56 3.83 3.66 3.75 2.73 4.00 4.05 4.38
Quick ratio 2.64 2.17 2.35 2.19 2.80 2.76 2.86 2.51 3.10 3.03 3.55 3.47 2.41 2.64 2.52 2.59 2.14 2.72 2.88 3.31
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

First Solar Inc's liquidity ratios show a consistent trend over the past eight quarters. The current ratio has ranged from 3.08 to 4.21, indicating that the company has maintained a strong ability to meet its short-term obligations using its current assets. The quick ratio, which excludes inventory from current assets, has also been stable, ranging from 2.43 to 3.20, suggesting that First Solar has a solid liquidity position even when excluding inventory.

The cash ratio, which is the most conservative measure of liquidity, has varied between 1.79 and 2.71, demonstrating that the company holds sufficient cash reserves to cover its immediate liabilities. Overall, First Solar Inc's liquidity ratios indicate that the company has maintained a strong liquidity position, with sufficient current assets to cover its short-term obligations, even when highly liquid assets are considered.

See also:

First Solar Inc Liquidity Ratios (Quarterly Data)

Additional liquidity measure

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 conversion cycle days 258.47 211.83 158.25 103.54 85.28 147.20 178.76 174.37 132.32 122.45 148.59 156.91 108.48 88.00 93.26 92.20 111.49 145.90 115.89 150.93

The cash conversion cycle of First Solar Inc has exhibited fluctuating trends over the past eight quarters. The cycle lengthened significantly from Q1 2023 to Q4 2023, reaching 263.25 days, indicating a slowdown in the company's ability to convert its investments in inventory and accounts receivable into cash. This increase in the cash conversion cycle may suggest issues with managing inventory levels, accounts receivable collection, or payment of accounts payable.

Comparing the recent quarters, Q3 2023 had a lower cash conversion cycle of 213.19 days than Q4 2023, showing an improvement in the company's cash management efficiency. However, the cycle had been increasing steadily from Q1 2022 to Q2 2022 before showing a decline in Q3 2022, suggesting potential challenges in managing working capital during those periods.

Overall, the cash conversion cycle of First Solar Inc has shown some volatility, with fluctuations across the quarters. It is important for the company to closely monitor and manage its working capital components to ensure effective cash conversion and optimize its liquidity position.