Sinovoltaics releases financial stability ranking of PV module manufacturers

Sinovoltaics, a Hong Kong-based technical compliance and quality assurance service firm, has released a PV Module Manufacturers Ranking covering 52 panel suppliers spread across the world. The company said the results are calculated from June 2020 until 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 noteworthy that some of the larger and more famous brands are on the lower ranking spectrum whereas some of the not-so-famous brands are on the upper spectrum of our ranking report,” Niclas Weimar, chief technology officer of Sinovoltaics, told pv magazine.

The Altman Z-Score is 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 through a credit-strength test based on profitability, leverage, liquidity, solvency, and activity ratios, according to Sinovoltaics. 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 China-based Tainergy, followed by US-based First Solar, Taiwan-headquartered Eterbright Solar Corporation, US-based Mission Solar, and China-based ERA Solar Technology Co., Ltd. The following five positions are occupied by Taiwan-based TSEC and four Chinese manufacturers, namely Longi, Tongwei, DMEGC, and Phono Solar.

“We have generally received positive feedback about our ranking reports over the years, both from manufacturers as well as industry stakeholders, such as financial institutions which use our ranking reports also as part of their due diligence process,” Weimar said, when asked about the reaction from the industry.

“Sinovoltaics’ ranking reports are based purely on publicly available financial data accessible to everyone,” said Weimar, adding that while the rankings do not say anything about the actual quality of PV equipment, many financiers and PV equipment buyers do consider the Sinovoltaics Ranking Reports in their buying decisions as they prefer to purchase from financially stable manufacturers.