First Solar Inc (FSLR)

Quick ratio

		Dec 31, 2024	Sep 30, 2024	Mar 31, 2024	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
Cash	US$ in thousands	1,621,380	1,005,130	1,682,080	1,946,990	1,492,960	829,913	906,634	1,481,270	1,150,980	1,701,220	1,326,360	1,450,650	1,367,460	1,346,890	972,879	1,227,000	1,277,050	1,052,700	929,355	1,352,740
Short-term investments	US$ in thousands	171,583	264,691	308,016	155,495	329,516	1,054,040	1,364,610	1,096,710	776,213	143,944	223,091	375,389	554,601	418,505	562,735	520,066	353,819	494,080	579,340	811,506
Receivables	US$ in thousands	1,686,610	790,597	876,306	1,342,320	775,320	682,635	298,620	324,337	325,421	454,431	293,357	429,436	248,341	583,028	790,096	292,759	296,784	334,069	387,036	660,969
Total current liabilities	US$ in thousands	2,077,440	1,782,160	1,758,720	1,306,160	1,199,100	1,090,610	1,174,170	1,038,050	816,268	803,554	734,990	726,878	715,236	660,923	669,341	847,398	731,091	747,036	732,435	1,318,210
Quick ratio		1.67	1.16	1.63	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

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

First Solar Inc's quick ratio has shown fluctuating trends over the years. The quick ratio measures the company's ability to meet its short-term obligations using its most liquid assets.

From December 2019 to March 2021, the quick ratio increased steadily from 2.14 to 3.47, indicating an improvement in the company's short-term liquidity position. This was a positive sign as it suggested the company had a sufficient amount of quick assets to cover its current liabilities.

However, in the subsequent quarters, the quick ratio fluctuated, reaching a peak of 3.55 in June 2021 before declining to 1.63 by March 2024. This significant drop suggests a potential weakening of the company's ability to meet its short-term obligations using its quick assets.

The quick ratio rebounded slightly to 2.64 by December 2024 but remained below the levels seen in the earlier periods. This indicates there may be some challenges in managing short-term liquidity effectively.

Overall, while the company's quick ratio has shown fluctuations, it is essential for investors and stakeholders to monitor these ratios closely to ensure the company continues to maintain a healthy liquidity position to meet its short-term obligations.