Liquidity ratios measure the company ability to meet its short-term obligations.
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Liquidity Ratios (Summary)
Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
---|---|---|---|---|---|---|
Current ratio | ||||||
Quick ratio | ||||||
Cash ratio |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
- Current Ratio
- The current ratio exhibited an overall increasing trend from 2.73 in 2019 to a peak of 4.39 in 2021, indicating an improvement in the company's ability to cover short-term liabilities with current assets. However, after 2021, a decline was observed, decreasing to 3.65 in 2022 and slightly further to 3.55 in 2023, though still remaining above the 2019 level. This suggests a slight reduction in liquidity but the ratio remains strong.
- Quick Ratio
- The quick ratio also showed a general upward trend from 2.00 in 2019 to 3.10 in 2021, reflecting enhanced liquidity in terms of more readily available assets excluding inventory. Subsequent years saw a decline to 2.80 in 2022 and 2.62 in 2023, similar to the current ratio trend, indicating some easing in liquidity but still maintaining healthy levels compared to the starting point.
- Cash Ratio
- The cash ratio increased steadily from 1.64 in 2019 to 2.51 in 2021, highlighting an increase in the most liquid assets available to cover current liabilities. This was followed by a minor decrease to 2.48 in 2022, then a more significant decline to 1.61 in 2023, returning almost to the initial 2019 level. This suggests a reduction in cash or cash equivalents relative to current liabilities in the most recent year, which may warrant further examination.
Current Ratio
Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
---|---|---|---|---|---|---|
Selected Financial Data (US$ in thousands) | ||||||
Current assets | ||||||
Current liabilities | ||||||
Liquidity Ratio | ||||||
Current ratio1 | ||||||
Benchmarks | ||||||
Current Ratio, Competitors2 | ||||||
Advanced Micro Devices Inc. | ||||||
Analog Devices Inc. | ||||||
Applied Materials Inc. | ||||||
Broadcom Inc. | ||||||
Intel Corp. | ||||||
KLA Corp. | ||||||
Lam Research Corp. | ||||||
Micron Technology Inc. | ||||||
NVIDIA Corp. | ||||||
Qualcomm Inc. | ||||||
Texas Instruments Inc. | ||||||
Current Ratio, Sector | ||||||
Semiconductors & Semiconductor Equipment | ||||||
Current Ratio, Industry | ||||||
Information Technology |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Current ratio = Current assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Current Assets
- The current assets exhibit a fluctuating but overall increasing trend over the five-year period. Beginning at approximately 3.60 billion USD in 2019, the figure decreased to about 3.01 billion USD in 2020, before gradually increasing again through 2021 and 2022, reaching a peak of approximately 4.63 billion USD in 2023. This indicates a strengthening in the company's liquid and short-term resources over time, particularly notable in the last two years.
- Current Liabilities
- Current liabilities show an overall decreasing pattern from 2019 to 2021, dropping from about 1.32 billion USD to approximately 0.73 billion USD. However, there was a reversal of this trend in 2022 and 2023, where liabilities rose to roughly 1.04 billion USD and 1.31 billion USD, respectively. This indicates some variability in the company’s short-term obligations, with a reduction in liabilities in the early years followed by an increase in the more recent periods.
- Current Ratio
- The current ratio demonstrates an initial improvement from 2.73 in 2019 to 4.39 in 2021, suggesting an increasing margin of safety in covering short-term liabilities with current assets. However, from 2021 to 2023, the ratio declined to 3.55, though it remains above the 2019 level. This decrease indicates a slight reduction in liquidity relative to liabilities after peaking in 2021, but the ratio still reflects a comfortable liquidity position overall.
Quick Ratio
Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
---|---|---|---|---|---|---|
Selected Financial Data (US$ in thousands) | ||||||
Cash and cash equivalents | ||||||
Marketable securities | ||||||
Accounts receivable trade, net | ||||||
Government grants receivable, net | ||||||
Total quick assets | ||||||
Current liabilities | ||||||
Liquidity Ratio | ||||||
Quick ratio1 | ||||||
Benchmarks | ||||||
Quick Ratio, Competitors2 | ||||||
Advanced Micro Devices Inc. | ||||||
Analog Devices Inc. | ||||||
Applied Materials Inc. | ||||||
Broadcom Inc. | ||||||
Intel Corp. | ||||||
KLA Corp. | ||||||
Lam Research Corp. | ||||||
Micron Technology Inc. | ||||||
NVIDIA Corp. | ||||||
Qualcomm Inc. | ||||||
Texas Instruments Inc. | ||||||
Quick Ratio, Sector | ||||||
Semiconductors & Semiconductor Equipment | ||||||
Quick Ratio, Industry | ||||||
Information Technology |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
The financial data reveals important trends relating to liquidity and short-term financial health over the five-year period ending December 31, 2023.
- Total Quick Assets
- Total quick assets show a fluctuating but overall upward trajectory. Beginning at approximately $2.64 billion in 2019, there was a decline in 2020 to around $2.01 billion. This was followed by steady increases in the subsequent years, reaching about $3.42 billion by the end of 2023. This pattern indicates a recovery and strengthening of highly liquid assets after the downward movement in 2020.
- Current Liabilities
- Current liabilities decreased significantly from $1.32 billion in 2019 to $847 million in 2020, continuing to decline further to $727 million in 2021. However, the trend reversed in 2022 and 2023, with liabilities increasing to approximately $1.04 billion and then $1.31 billion respectively. This suggests initial efforts to reduce short-term obligations were followed by a rise in liabilities in the last two years, indicating possible increased operational or financing activities.
- Quick Ratio
- The quick ratio experienced an increase from 2.0 in 2019 to a peak of 3.1 in 2021, reflecting a stronger liquidity position relative to current liabilities, meaning the company held more quick assets per unit of current liabilities. In the last two years, the ratio declined to 2.8 in 2022 and further to 2.62 in 2023. Although this represents a reduction from the peak, the ratio remains well above 1.0, indicating that the company maintained a comfortable margin of liquid assets against short-term liabilities throughout the period.
Overall, the data suggests that after initial tightening of liquidity reflected in 2020, the company bolstered its liquid asset base and reduced liabilities up to 2021, thereby strengthening its liquidity. The subsequent increase in current liabilities, coupled with a slightly declining quick ratio, signals more balanced management between asset liquidity and obligations in recent years, though the liquidity position remains strong.
Cash Ratio
Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
---|---|---|---|---|---|---|
Selected Financial Data (US$ in thousands) | ||||||
Cash and cash equivalents | ||||||
Marketable securities | ||||||
Total cash assets | ||||||
Current liabilities | ||||||
Liquidity Ratio | ||||||
Cash ratio1 | ||||||
Benchmarks | ||||||
Cash Ratio, Competitors2 | ||||||
Advanced Micro Devices Inc. | ||||||
Analog Devices Inc. | ||||||
Applied Materials Inc. | ||||||
Broadcom Inc. | ||||||
Intel Corp. | ||||||
KLA Corp. | ||||||
Lam Research Corp. | ||||||
Micron Technology Inc. | ||||||
NVIDIA Corp. | ||||||
Qualcomm Inc. | ||||||
Texas Instruments Inc. | ||||||
Cash Ratio, Sector | ||||||
Semiconductors & Semiconductor Equipment | ||||||
Cash Ratio, Industry | ||||||
Information Technology |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Total Cash Assets
- The total cash assets showed an initial decline from approximately 2,164 million USD at the end of 2019 to around 1,747 million USD by the end of 2020. This was followed by a modest increase in 2021, reaching approximately 1,826 million USD. A significant rise occurred in 2022, with cash assets peaking close to 2,578 million USD. However, in 2023, the cash assets decreased to about 2,102 million USD, indicating some volatility but overall maintenance of a relatively strong cash position compared to 2019 levels.
- Current Liabilities
- The current liabilities decreased substantially from 1,318 million USD at the end of 2019 to 847 million USD in 2020, followed by a further decline to approximately 727 million USD at the end of 2021. This downward trend reversed in 2022, where current liabilities increased to around 1,038 million USD, and continued to rise in 2023 reaching about 1,306 million USD. The increase in current liabilities in the last two years suggests growing short-term obligations, returning near to the 2019 level.
- Cash Ratio
- The cash ratio demonstrated an improving trend from 1.64 in 2019 to a higher level of 2.06 in 2020 and further up to 2.51 in 2021, reflecting an increasingly favorable liquidity position relative to current liabilities. In 2022, the ratio slightly declined to 2.48 but remained strong. However, in 2023, the cash ratio dropped significantly to 1.61, nearly returning to its 2019 level, which suggests a decrease in liquidity cushion relative to current liabilities.
- Overall Insights
- The data reveals a fluctuating but generally strong liquidity position over the five-year period. There was a marked improvement in the cash ratio and reduction in current liabilities from 2019 through 2021, accompanied by stable or increasing total cash assets. Starting in 2022, both cash assets and current liabilities increased, with a notable rise in current liabilities by 2023 that diminished the cash ratio considerably. This shift indicates increased short-term financial obligations and a more balanced liquidity profile compared to the earlier years of the period analyzed.