Sinovoltaics Releases Quarterly Financial Ranking Reports for Solar, Storage, and Inverter Companies

Austin, Texas (March 05, 2024) – Sinovoltaics, a global leader in quality assurance, ESG & Traceability for the solar photovoltaic (PV) and battery energy storage system (BESS) industries, has released its first quarterly financial ranking reports for 2024. The reports rank the financial stability of publicly listed PV module, energy storage, and inverter manufacturers in the United States, Europe, and Asia.

Since 2016, the Sinovoltaics team has gathered publicly available financial data and ranked each module, energy storage, and inverter company by applying the Altman Z-Score, a well-established financial evaluation tool widely used in the finance sector to assess the financial health of various manufacturing industries.

The Altman Z-Score assesses a company’s financial strength 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. More details on the scores and how to interpret them can be found in the reports, available as a free download on Sinovoltaics’ website.

“Sinovoltaics is pleased to offer these ranking reports, along with our supply chain maps, to complement our primary quality assurance service,” said Dricus de Rooij, co-founder and CEO of Sinovoltaics. “Because these first reports for 2024 are based on data from June 2020 to December 2023, they provide detailed insights on how the financial strength of each manufacturer has evolved over the past three years. That gives developers useful information for sourcing components for their projects,” he added.

The Sinovoltaics ranking reports differ significantly from the Bloomberg PV Module Tier 1 List, which employs different criteria, methodologies, and spreads of data. Bloomberg’s criteria include bankability, production capacity, vertical integration, project deployment, research and development, and warranty and service. Sinovoltaics’ rankings only focus on a public company’s financial health and does not consider other parameters beyond the Altman Z-Score.

In addition, Sinovoltaics’ rankings span a broad set of manufacturers, from top to lesser performers, which gives developers a more comprehensive view of the manufacturing landscape. Because Sinovoltaics’ rankings use publicly available data and an established, straightforward methodology that compares apples to apples, reporters, solar developers, and manufacturers will benefit from its transparency and via a well-established, impartial formula.

Solar developers may utilize Sinovoltaics’ ranking reports as an objective tool to evaluate a manufacturer’s financial stability and procurement decisions. Purchasing from financially strong manufacturers typically indicates that the company’s warranties are likely to be enforceable for a longer period. Financial viability is particularly crucial in the emerging energy storage market, which has many new manufacturers. In addition to evaluating financial viability, Sinovoltaics also recommends conducting factory audits and comprehensive quality inspections to protect investment returns and reduce the risks of technical failures in the field.

Although a low score indicates a higher risk of bankruptcy, some manufacturers have had low scores for years and continue to be in business. However, based on the Altman Z-Score formula and studies about its accuracy, the bankruptcy risk is significant.

Sinovoltaics began releasing its ranking reports in 2016. The company will continue releasing the reports quarterly, allowing developers to see trends that can inform their purchasing and supply decisions.

About Sinovoltaics

Since 2009, Sinovoltaics, a Dutch-German solar photovoltaic (PV) and Battery Energy Storage (BESS) technical compliance and quality assurance service firm, has been a pioneer in the solar photovoltaic and BESS industries. With our SELMA (Sinovoltaics EL Mass Analysis) software and industry-leading Zero Risk Solar® guarantee, our mission is to eliminate all photovoltaic and BESS product defects, enabling investors and the world to succeed with minimal investment risks.

Sinovoltaics’ services include quality assurance inspections, factory audits, Environmental, Social, and Governance (ESG), and traceability audits for utility solar developers and investors. The company maintains a global presence with offices in Switzerland, the United States, Hong Kong, mainland China, Vietnam, and Spain, as well as factory inspection and audit teams strategically located in Vietnam, Turkey, Thailand, China, Malaysia, Cambodia, South Korea, India, U.S., and other key manufacturing bases.

For media inquiries, please contact:

Tor Valenza

tor@sinovoltaics.com

Read more of our ->> press releases.