First Solar Inc (FSLR)

Quick ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash	US$ in thousands	1,621,380	1,946,990	1,481,270	1,450,650	1,227,000
Short-term investments	US$ in thousands	171,583	155,495	1,096,710	375,389	520,066
Receivables	US$ in thousands	1,686,610	1,342,320	324,337	429,436	292,759
Total current liabilities	US$ in thousands	2,077,440	1,306,160	1,038,050	726,878	847,398
Quick ratio		1.67	2.64	2.80	3.10	2.41

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,621,380K + $171,583K + $1,686,610K) ÷ $2,077,440K
= 1.67

The quick ratio of First Solar Inc has shown a positive trend over the years, indicating the company's ability to meet its short-term obligations with its most liquid assets.

As of December 31, 2020, the quick ratio was 2.41, which increased to 3.10 by December 31, 2021, demonstrating a strong improvement in liquidity. However, by December 31, 2022, the quick ratio slightly decreased to 2.80, but remained at a level that suggests the company has a comfortable cushion of liquid assets to cover its short-term liabilities.

Subsequently, by December 31, 2023, the quick ratio decreased further to 2.64, indicating a potential slight decrease in liquidity reserves compared to the previous year. The most recent data point as of December 31, 2024, shows a quick ratio of 1.67, which is lower than in previous years and may signal a slight potential liquidity challenge.

Overall, the trend in the quick ratio of First Solar Inc indicates that the company has generally maintained a healthy liquidity position over the years, although there was a slight decrease in the most recent year, which may warrant further monitoring to ensure the company remains capable of meeting its short-term obligations.