Sinovoltaics has been analyzing publicly traded solar panel manufacturers over the past three years using a balance sheet-based model and publicly available financial information to track financial strength. The top five module makers in the new rankings are Tainergy, First Solar, Eterbright, Mission Solar and Era Solar.
Sinovoltaics, a Hong Kong-based technical compliance and quality assurance service company, has a Ranking of PV module manufacturers with 52 panel suppliers spread around the world. The company said the results are calculated from June 2020 to December 2023 to provide insight into the stability of the scores over time.
The ranking uses a so-called Altmann Z-score. “It is quite remarkable that some of the larger and better-known brands are in the lower spectrum, while some of the lesser-known brands are in the higher spectrum of our ranking report,” said Niclas Weimar, Chief Technology Officer of Sinovoltaics. told pv magazine.
The Altman Z-Score is a quantitative formula that uses multiple operating income and balance sheet values to measure a company’s financial health. It assesses a company’s financial strength through a credit strength test based on profitability, leverage, liquidity, solvency and activity ratios, Sinovoltaics said. A score of 1.1 or lower indicates a greater likelihood of bankruptcy within the next two years, while a higher score of 2.6 or higher indicates a solid financial position.
The manufacturer topping the rankings is China-based Tainergy, followed by US-based First Solar, Taiwan-based Eterbright Solar Corporation, US-based Mission Solar and China-based ERA Solar Technology Co., Ltd. . The next five positions are occupied by Taiwan-based TSEC and four Chinese manufacturers, namely Longi, Tongwei, DMEGC and Phono Solar.
“We have received generally positive feedback on our ranking reports over the years, both from manufacturers and industry stakeholders such as financial institutions who also use our ranking reports as part of their due diligence process,” Weimar said when asked asked about the reaction from the industry.
“Sinovoltaics’ ranking reports are purely based on publicly available financial data that is accessible to everyone,” said Weimar, adding that while the rankings say nothing about the actual quality of PV equipment, many financiers and buyers of PV equipment do take into account consider the Sinovoltaics Ranking Reports in their purchasing decisions, because they prefer to buy from financially stable manufacturers.
This content is copyrighted and may not be reused. If you would like to collaborate with us and reuse some of our content, please contact: editors@pv-magazine.com.
