PV module manufacturer financial stability rankings

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From pv magazine Global

Sinovoltaics, a Hong Kong-based technical compliance and quality assurance service firm, has released its third quarter PV Module Manufacturers Ranking, which is global in scope and covers 65 panel suppliers, 6 more than the previous ranking. The report is available to download for free. Results are calculated based on publicly available information from September 2021 to June 2024 to provide insight into the stability of the scores over time.

In this edition, the analysts highlighted four module manufacturers that made improvements, such as U.S.-based Mission Solar’s shift to tenth spot from twelfth, India-based Tata Power Solar up from position 37 to 30, and Taiwan-based Ritek climbed from 47 to 44.

The top of the financial stability chart features four manufacturers from India, Abhishek Corp, Insolartion EnergyWaaree Renewable TechnologiesSolex Energy, followed by U.S.-based First Solar, which moved up a notch into fifth from sixth place. Next is Taiwan-based Tainergy, which had the top spot last quarter, now in position six. It is followed by Eterbright Solar Corporation, Taiwan-based TSEC, and two newcomers to the top ten, Vietnam’s Boviet Solar and U.S.-based Mission Solar.

The Sinovoltaics financial stability ranking uses a so-called Altmann Z-score, a quantitative formula that relies on several corporate income and balance sheet values to measure the financial health of a company. It assesses a company’s financial strength based on public information through a credit-strength test based on profitability, leverage, liquidity, solvency, and activity ratios. A score that is 1.1 or lower indicates a higher probability of bankruptcy within the next two years, while a higher score of 2.6 or greater indicates a solid financial position.

The Sinovoltaics analysts note that while the rankings do not say anything about the actual quality of PV equipment, buyers and other industry stakeholders, such as financial institutions, can use the ranking reports as part of the due diligence process or to help identify financially stable partners.

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