Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
Paying user area
Try for free
First Solar Inc. pages available for free this week:
- Income Statement
- Cash Flow Statement
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Analysis of Reportable Segments
- Common Stock Valuation Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Price to FCFE (P/FCFE)
- Total Asset Turnover since 2006
- Price to Earnings (P/E) since 2006
- Price to Sales (P/S) since 2006
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to First Solar Inc. for $22.49.
This is a one-time payment. There is no automatic renewal.
We accept:
Liquidity Ratios (Summary)
First Solar Inc., liquidity ratios (quarterly data)
Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
- Current Ratio Analysis
- The current ratio exhibits a fluctuating trend over the analyzed periods. Starting from a high of 4.38 in March 2019, it generally declined to reach its lowest point at 2.14 in September 2024. Notably, there was a recovery phase between early 2021 and the end of 2022 when the ratio remained relatively stable around the 4.0 level, before a subsequent decline commencing in 2023, marking a downward movement towards lower liquidity levels in the latest periods.
- Quick Ratio Analysis
- The quick ratio closely follows the fluctuations observed in the current ratio but at relatively lower levels. It started at 2.89 in March 2019, showed periods of moderate variation, and peaked around 3.55 in mid-2021. Post this peak, the ratio declined steadily, especially from 2023 onward, reaching a low point of 1.14 by September 2024. This reflects tightening liquidity in terms of assets quickly convertible to cash, signaling increased pressure on short-term asset quality or availability.
- Cash Ratio Analysis
- The cash ratio, the most conservative liquidity measure, started high at 2.53 in March 2019 and showed a general downward trend throughout the timeline. Despite intermittent improvements, including a small uptick between 2021 and early 2023, the ratio declined notably to 0.71 by September 2024. This suggests that the company's cash and cash-equivalents relative to current liabilities have decreased significantly, indicating potential constraints in immediate liquidity.
- Overall Liquidity Insights
- The analysis of these liquidity ratios indicates that while the company maintained strong liquidity positions in the earlier periods, there has been a consistent erosion of liquidity buffers in recent years. The marked decline in cash and quick ratios points to reduced availability of immediately liquid assets to cover short-term obligations. The downward trends across all three ratios toward the end of the timeline highlight increased liquidity risk, which warrants attention in financial planning and risk management strategies.
Current Ratio
First Solar Inc., current ratio calculation (quarterly data)
| Sep 30, 2024 | Jun 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 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. | ||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q3 2024 Calculation
Current ratio = Current assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Current Assets
- The current assets showed a fluctuating pattern over the periods analyzed. Initially, from March 2019 to December 2019, there was a general decline from 3,662,826 to 3,599,834 thousand US dollars, followed by a further decrease reaching a trough around March 2020 at 2,747,843 thousand US dollars. After this low point, the current assets experienced a gradual recovery and growth trend, peaking significantly in December 2023 at 4,634,809 thousand US dollars. However, subsequent quarters show a slight decline, with current assets decreasing to 3,818,103 thousand US dollars by September 2024.
- Current Liabilities
- Current liabilities have exhibited volatility over the same timeline. Notable is the spike at December 2019 with liabilities jumping to 1,318,208 thousand US dollars from preceding levels around 760,000 to 843,319 thousand US dollars. Afterward, liabilities decreased and stabilized somewhat through 2020 and 2021, remaining mostly under one million thousand US dollars. From early 2022 onwards, the liabilities began a steady rise, culminating at a peak of 1,782,165 thousand US dollars in September 2024. This upward movement in liabilities is indicative of increasing short-term obligations.
- Current Ratio
- The current ratio, which measures liquidity by comparing current assets to current liabilities, displayed a notable declining trend. It started at a robust level of 4.38 in March 2019, indicating strong liquidity and the company's capacity to cover short-term liabilities multiple times over. The ratio dropped markedly to 2.73 by December 2019 during the concurrent spike in liabilities and fall in current assets. Thereafter, it rebounded and remained relatively stable above 3.5 through much of 2020 and 2021. However, starting from early 2023, the current ratio shows a consistent decline, falling below 3 and reaching approximately 2.14 by September 2024. This decline in the current ratio signals a weakening liquidity position, potentially raising concerns about the company’s short-term financial flexibility despite increasing current assets.
- Overall Analysis
- The data indicate a period of volatility and recovery from 2019 through 2024 for both assets and liabilities. Current assets experienced a sharp drop coinciding with a peak in current liabilities toward the end of 2019, likely impacting liquidity negatively at that time. There was a period of recovery and relative stability until around 2022, when liabilities began to rise steadily again, outpacing asset growth in rate towards the end of the period. This resulted in a deteriorating current ratio over recent quarters. While the absolute value of current assets remains relatively high, the rising liabilities and falling current ratio suggest increasing short-term financial pressure and warrant close monitoring.
Quick Ratio
First Solar Inc., quick ratio calculation (quarterly data)
| Sep 30, 2024 | Jun 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 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. | ||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q3 2024 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Total quick assets
- The total quick assets exhibit notable fluctuations over the observed period. Initially, values declined from approximately 2.42 billion USD at the end of Q1 2019 to around 1.79 billion USD by Q1 2020. Following this drop, the quick assets generally trended upward, reaching a peak of about 3.42 billion USD in Q4 2023. However, towards the latest quarters, there is a visible decline, descending to approximately 2.04 billion USD by Q3 2024. This pattern suggests periodic variability with some recovery phases, but a recent reduction in liquid asset availability is evident.
- Current liabilities
- Current liabilities mostly maintain an increasing trend throughout the duration. Starting from roughly 837 million USD in Q1 2019, they experienced a significant jump to around 1.32 billion USD by Q4 2019, followed by a dip in mid-2020 to approximately 732 million USD. Subsequently, liabilities generally rose, surpassing 1.3 billion USD by the end of 2023, and further increasing to near 1.78 billion USD by Q3 2024. This incremental growth in liabilities may indicate either increased operational commitments or financing strategies that raised short-term obligations.
- Quick ratio
- The quick ratio shows a discernible variance over the timeline, signaling changes in the company's short-term liquidity position. Initially, it decreased from 2.89 in Q1 2019 to 2.00 by Q4 2019, indicating a weakening of quick assets relative to current liabilities. In 2021, the ratio peaked above 3.5 in mid-year, suggesting a relatively strong liquidity buffer at that time. However, after mid-2023, the quick ratio sharply declined below 2.0, reaching as low as 1.14 by Q3 2024. This declining quick ratio in recent periods highlights a potentially reduced capacity to cover short-term liabilities promptly with liquid assets, which might require attention regarding liquidity management.
- Overall analysis
- The data reflects cyclical behavior in quick assets accompanied by a general upward trend in current liabilities. The quick ratio's fluctuations corroborate these observations, with liquidity position peaking around 2021 and weakening significantly thereafter. This suggests that despite increases in liquid assets over some quarters, the rise in liabilities has outpaced asset growth more recently, leading to a tighter short-term financial position. Continuous monitoring of these trends is advisable to mitigate potential liquidity risks.
Cash Ratio
First Solar Inc., cash ratio calculation (quarterly data)
| Sep 30, 2024 | Jun 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 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. | ||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q3 2024 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Total Cash Assets
- The total cash assets demonstrate a fluctuating trend over the observed periods. Initially, cash assets declined from approximately 2.12 billion in March 2019 to around 1.54 billion by September 2019, followed by a recovery to about 2.16 billion by December 2019. Subsequently, the cash assets fluctuated between roughly 1.5 billion and 2.5 billion across the quarters, peaking at approximately 2.58 billion in December 2022. However, since then, there is a noticeable downward trend, with cash assets decreasing to around 1.27 billion by September 2024.
- Current Liabilities
- Current liabilities have generally increased over the time span. Starting at approximately 837 million in March 2019, they stayed relatively stable below 1 billion through 2020 and 2021. From early 2022 onward, current liabilities showed a steady increase, rising from about 735 million to over 1.78 billion by September 2024. This indicates a significant growth in short-term obligations in recent periods.
- Cash Ratio
- The cash ratio exhibits a declining trend overall, reflecting diminishing liquidity relative to current liabilities. It began at a high level of 2.53 in March 2019, decreased to 1.64 by December 2019, then showed a temporary increase peaking close to 2.69 in September 2021. After this peak, the ratio consistently declined, falling below 1.0 by mid-2024 and reaching 0.71 in September 2024. This signals that cash and cash equivalents have become less sufficient to cover current liabilities entirely, indicating a reduction in short-term financial flexibility.
- Summary Insights
- Over the analyzed quarterly periods, total cash assets have exhibited volatility with a recent downward trend, while current liabilities steadily increased, particularly after 2021. The continuous drop in the cash ratio highlights tightening liquidity conditions, suggesting that the company’s cash reserves are becoming less adequate to meet short-term obligations. This evolution points to potential increased pressure on liquidity management and may warrant attention to cash flow optimization and liability management strategies.