Sinovoltaics updates financial stability ranking of PV module manufacturers

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Sinovoltaics, a Hong Kong-based technical compliance and quality assurance service firm, has released its latest PV Module Manufacturers Ranking, which is global in scope and covers 59 panel suppliers, 7 more than the previous ranking. The report is available to download for free. Results are calculated from June 2020 until March 2024 to provide insight into the stability of the scores over time.

In the latest Sinovoltaics module-focused report, the analysts noted several improved scores. For example, Taiwan’s Eterbright Solar Corporation, a unit of Hiwin Technologies, moved up the ranking from third to second place, switching places with US-based First Solar.

China’s DMEGC Solar, a unit of DMEGC Magnetics Group, climbed from ninth to sixth, while India-based Adani Solar, a unit of Adani Enterprises, entered the top ten at seventh place, up from thirteenth.

The ranking uses a so-called Altmann Z-score, a quantitative formula that uses multiple corporate income and balance sheet values to measure the financial health of a company. It assesses a company’s financial strength based on publicly available 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 manufacturer leading the ranking is Taiwan-based Tainergy, followed by Eterbright Solar Corporation, and First Solar. They are followed by China-based ERA Solar Technology and Taiwan-based TSEC, DMEGC, Adani Solar, Japan’s Kyocera, and China-based Tognwei Solar and Longi.

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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