First Solar Inc (FSLR)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 1,946,990 | 1,481,270 | 1,450,650 | 1,227,000 | 1,352,740 |
| Short-term investments | US$ in thousands | 155,495 | 1,096,710 | 375,389 | 520,066 | 811,506 |
| Receivables | US$ in thousands | 1,342,320 | 324,337 | 429,436 | 292,759 | 660,969 |
| Total current liabilities | US$ in thousands | 1,306,160 | 1,038,050 | 726,878 | 847,398 | 1,318,210 |
| Quick ratio | 2.64 | 2.80 | 3.10 | 2.41 | 2.14 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,946,990K
+ $155,495K
+ $1,342,320K)
÷ $1,306,160K
= 2.64
The quick ratio of First Solar Inc has shown a generally positive trend over the past five years. The ratio indicates the company's ability to meet its short-term obligations using its most liquid assets. The ratio has improved steadily from 2.34 in 2019 to 2.91 in 2023, signifying an increase in liquidity and a stronger ability to cover current liabilities with quick assets.
Although there was a slight dip in the quick ratio in 2020 to 2.70, the subsequent years saw a steady increase, reaching 3.47 in 2021 and then slightly decreasing to 3.05 in 2022. This trend suggests that the company has been effectively managing its current liabilities and maintaining a healthy level of liquidity over the years.
Overall, the quick ratio of First Solar Inc reflects a strong liquidity position, indicating that the company has a sufficient amount of liquid assets to cover its short-term obligations. This trend is generally positive and demonstrates the company's ability to meet its financial commitments and potential unexpected expenses in the short term.
Peer comparison
Dec 31, 2023