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FSLR (First Solar) Altman Z-Score : 4.84 (As of Oct. 31, 2024)


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What is First Solar Altman Z-Score?

The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.

Good Sign:

Altman Z-score of 4.97 is strong.

First Solar has a Altman Z-Score of 4.84, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.

The zones of discrimination were as such:

When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.

The historical rank and industry rank for First Solar's Altman Z-Score or its related term are showing as below:

FSLR' s Altman Z-Score Range Over the Past 10 Years
Min: 2.35   Med: 3.95   Max: 6.5
Current: 4.97

During the past 13 years, First Solar's highest Altman Z-Score was 6.50. The lowest was 2.35. And the median was 3.95.


First Solar Altman Z-Score Historical Data

The historical data trend for First Solar's Altman Z-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

First Solar Altman Z-Score Chart

First Solar Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Altman Z-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.63 5.39 5.48 5.23 4.53

First Solar Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Altman Z-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.52 4.53 4.31 5.41 -

Competitive Comparison of First Solar's Altman Z-Score

For the Solar subindustry, First Solar's Altman Z-Score, along with its competitors' market caps and Altman Z-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


First Solar's Altman Z-Score Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, First Solar's Altman Z-Score distribution charts can be found below:

* The bar in red indicates where First Solar's Altman Z-Score falls into.



First Solar Altman Z-Score Calculation

Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

First Solar's Altman Z-Score for today is calculated with this formula:

Z=1.2*X1+1.4*X2+3.3*X3+0.6*X4+1.0*X5
=1.2*0.178+1.4*0.4258+3.3*0.1199+0.6*5.5017+1.0*0.3367
=4.84

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.

Trailing Twelve Months (TTM) ended in Sep. 2024:
Total Assets was $11,437 Mil.
Total Current Assets was $3,818 Mil.
Total Current Liabilities was $1,782 Mil.
Retained Earnings was $4,870 Mil.
Pre-Tax Income was 327.342 + 377.131 + 255.519 + 376.681 = $1,337 Mil.
Interest Expense was -9.008 + -9.765 + -9.21 + -7.068 = $-35 Mil.
Revenue was 887.668 + 1010.482 + 794.108 + 1158.553 = $3,851 Mil.
Market Cap (Today) was $21,143 Mil.
Total Liabilities was $3,843 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1=Working Capital/Total Assets
=(Total Current Assets - Total Current Liabilities)/Total Assets
=(3818.103 - 1782.165)/11436.638
=0.178

X2=Retained Earnings/Total Assets
=4869.994/11436.638
=0.4258

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(1336.673 - -35.051)/11436.638
=0.1199

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=21142.831/3842.99
=5.5017

X5=Revenue/Total Assets
=3850.811/11436.638
=0.3367

The zones of discrimination were as such:

Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones

First Solar has a Altman Z-Score of 4.84 indicating it is in Safe Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.


First Solar  (NAS:FSLR) Altman Z-Score Explanation

X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.

X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.

X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.

X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.

X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.

Read more about Altman Z-Score and the original research.


Be Aware

Altman Z-Score does not apply to financial companies.


First Solar Altman Z-Score Related Terms

Thank you for viewing the detailed overview of First Solar's Altman Z-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


First Solar Business Description

Address
350 West Washington Street, Suite 600, Tempe, AZ, USA, 85288
First Solar designs and manufactures solar photovoltaic panels, modules, and systems for use in utility-scale development projects. The company's solar modules use cadmium telluride to convert sunlight into electricity. This is commonly called thin-film technology. First Solar is the world's largest thin-film solar module manufacturer. It has production lines in Vietnam, Malaysia, the United States, and India.
Executives
Patrick James Buehler officer: Chief Quality and Rel. Officer 28101 CEDAR PARK BLVD., PERRYSBURG OH 43551
Byron Michael Jeffers officer: CAO, Interim 350 WEST WASHINGTON ST., TEMPE AZ 85281
Kuntal Kumar Verma officer: Chief Mfg. Engineering Officer 28101 CEDAR PARK BLVD., PERRYSBURG OH 43551
Mark R Widmar officer: Chief Financial Officer C/O GRAFTECH INTERNATIONAL LTD, 12900 SNOW ROAD, PARMA OH 44130
Jason E. Dymbort officer: General Counsel, Interim 77 RIO ROBLES, SAN JOSE CA 95134
Alexander R. Bradley officer: Chief Financial Officer 77 RIO ROBLES, SAN JOSE CA 95134
Michael Koralewski officer: Chief Mfg. Operations Officer 28101 CEDAR PARK BLVD., PERRYSBURG OH 43551
Michael T Sweeney director GOLDNER HAWN, 3700 WELLS FARGO CENTER, 90 SOUTH 7TH ST, MINNEAPOLIS MN 55402
Paul H Stebbins director C/O WORLD FUEL SERVICES CORP, 9800 N.W. 41ST STREET, SUITE 400, MIAMI FL 33178
Richard D Chapman director 350 WEST WASHINGTON STREET, SUITE 600, TEMPE AZ 85281
Caroline Stockdale officer: EVP, HR & Communications C/O WARNER MUSIC GROUP, 75 ROCKEFELLER PLAZA, NEW YORK NY 10019
R Craig Kennedy director 1844 "R" STREET, NW, WASHINGTON DC 20009
Georges Antoun officer: Chief Operating Officer C/O FIRST SOLAR, INC., 350 WEST WASHINGTON ST., SUITE 600, TEMPE AZ 85281
Markus Gloeckler officer: Co-Chief Technology Officer 28101 CEDAR PARK BLVD., PERRYSBURG OH 43551
William J Post director 400 NORTH FIFTH STREET, ., PHOENIX AZ 85004