Name: First Solar Inc. (NASDAQ:FSLR) | Cash Flow Statement
Creator: Stock Analysis on Net

Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

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First Solar Inc., consolidated cash flow statement

US$ in thousands

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income (loss)	830,777)	(44,166)	468,693)	398,355)	(114,933)
Depreciation, amortization and accretion	307,994)	269,724)	259,900)	232,925)	205,475)
Impairments and net losses on disposal of long-lived assets	1,568)	63,338)	22,876)	35,806)	7,577)
Share-based compensation	34,219)	28,656)	20,902)	29,267)	37,429)
Deferred income taxes	(60,813)	(12,799)	49,847)	36,013)	(59,917)
Gain on sales of businesses, net	(6,883)	(253,511)	(147,284)	—)	—)
(Gain) loss on sales of marketable securities and restricted marketable securities	9)	—)	(11,696)	(15,346)	(40,621)
Liabilities assumed by customers for the sale of systems	—)	(145,281)	(85,490)	(136,745)	(88,050)
Gain on debt forgiveness	—)	(30,201)	—)	—)	—)
Other, net	22,053)	(1,029)	(3,484)	19,297)	1,962)
Accounts receivable, trade and unbilled	(304,183)	118,724)	(96,951)	345,150)	(73,594)
Inventories	(205,106)	16,693)	(136,365)	(145,396)	(83,528)
Project assets and PV solar power systems	8,626)	(14,336)	23,402)	106,867)	(20,773)
Government grants receivable	(659,745)	—)	—)	—)	—)
Other assets	(224,333)	(72,602)	(69,942)	(33,065)	(5,800)
Income tax receivable and payable	8,656)	43,592)	(13,062)	(177,431)	8,035)
Accounts payable and accrued expenses	79,328)	5,569)	48,968)	(109,583)	—)
Deferred revenue	783,207)	912,946)	47,062)	(157,284)	—)
Other liabilities	(13,114)	(11,948)	(139,817)	(391,710)	400,939)
Changes in operating assets and liabilities	(526,664)	998,638)	(336,705)	(562,452)	225,279)
Adjustments to reconcile net income (loss) to cash provided by operating activities	(228,517)	917,535)	(231,134)	(361,235)	289,134)
Net cash provided by operating activities	602,260)	873,369)	237,559)	37,120)	174,201)
Purchases of property, plant and equipment	(1,386,775)	(903,605)	(540,291)	(416,635)	(668,717)
Purchases of marketable securities and restricted marketable securities	(3,612,801)	(3,375,008)	(2,147,136)	(901,924)	(1,177,336)
Proceeds from sales and maturities of marketable securities and restricted marketable securities	4,563,890)	2,646,787)	2,294,595)	1,192,832)	1,486,631)
Proceeds from sales of businesses, net of cash and restricted cash sold	7,680)	442,302)	300,499)	—)	—)
Acquisitions, net of cash acquired	(35,739)	—)	—)	—)	—)
Other investing activities	(9,046)	(3,050)	(6,707)	(5,500)	(2,876)
Net cash used in investing activities	(472,791)	(1,192,574)	(99,040)	(131,227)	(362,298)
Proceeds from borrowings under debt arrangements, net of issuance costs	367,983)	397,380)	129,215)	156,679)	120,132)
Repayment of debt	—)	(75,896)	(72,676)	(225,344)	(30,099)
Payments of tax withholdings for restricted shares	(31,130)	(12,092)	(15,989)	(13,118)	(16,089)
Other financing activities	—)	—)	—)	(804)	999)
Net cash provided by (used in) financing activities	336,853)	309,392)	40,550)	(82,587)	74,943)
Effect of exchange rate changes on cash, cash equivalents, restricted cash, and restricted cash equivalents	5,285)	47,438)	3,174)	3,778)	(2,959)
Net increase (decrease) in cash, cash equivalents, restricted cash, and restricted cash equivalents	471,607)	37,625)	182,243)	(172,916)	(116,113)
Cash, cash equivalents, restricted cash, and restricted cash equivalents, beginning of the period	1,493,462)	1,455,837)	1,273,594)	1,446,510)	1,562,623)
Cash, cash equivalents, restricted cash, and restricted cash equivalents, end of the period	1,965,069)	1,493,462)	1,455,837)	1,273,594)	1,446,510)

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).

The financial trajectory from 2019 to 2023 is characterized by significant volatility in net income, paired with a strategic escalation in capital investment and a strengthening of the overall cash position. While net income fluctuated, including losses in 2019 and 2022, it reached a peak of 830.7 million USD in 2023, indicating a strong recovery and growth in profitability.

Operating Cash Flow and Working Capital: Net cash provided by operating activities exhibits a general upward trend, peaking at 873.3 million USD in 2022. A critical driver of this liquidity was the surge in deferred revenue, which spiked to 912.9 million USD in 2022 and remained high at 783.2 million USD in 2023, suggesting significant advance payments from customers. However, 2023 saw a substantial cash outflow of 659.7 million USD related to government grants receivable and a 304.1 million USD increase in accounts receivable, which moderated the net operating cash flow to 602.2 million USD despite the record net income.
Investment Strategy and Capital Expenditure: A consistent and aggressive expansion of the asset base is evident through the purchases of property, plant, and equipment, which increased from 668.7 million USD in 2019 to 1.38 billion USD in 2023. This indicates a long-term commitment to scaling production capacity. Additionally, the management of marketable securities shows high turnover, with proceeds from sales and maturities reaching 4.56 billion USD in 2023, offsetting significant purchases of 3.61 billion USD in the same period.
Financing and Debt Management: Financing activities transitioned from modest impacts to becoming a significant source of cash in the later years. Net cash provided by financing activities rose to 336.8 million USD in 2023. This was primarily driven by increased proceeds from borrowings, which totaled 397.3 million USD in 2022 and 367.9 million USD in 2023. Notably, the repayment of debt, which was a consistent feature between 2019 and 2022, was absent in 2023, suggesting a shift toward leveraging debt to fund growth.
Liquidity and Cash Position: The overall liquidity position has strengthened over the five-year period. Cash, cash equivalents, and restricted cash increased from 1.44 billion USD at the end of 2019 to 1.96 billion USD by the end of 2023. The net increase in cash for 2023 was particularly pronounced at 471.6 million USD, reflecting the combined impact of strong net income and strategic financing, despite the heavy capital expenditures.

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