GoodWe Adds Top Altman-Z Score To Strengthen High Bankability Status

Highlights :

  • Bankability matters hugely in the renewable energy sector, as it can impact financing.
  • For financiers still coming to grips with evaluating proposals for projects, strong supplier quality is a key reassurance they seek.

In few industrial sectors is the financial strength of every supplier taken as seriously as it possibly is in the case of solar energy. For the young sector, where projects are routinely expected to last 25 years, with minimum product warranties starting at 5 years, suppliers bankability has always been a selling point with financiers. Especially as they await long term data on the performance and resilience of various components in a solar project. That explains inverter major GoodWe showcasing its best in class Altman-Z score on BloombergNEF’s 2021 report to make its case as a strong partner buyers can trust. GoodWe got its score among all PV manufacturers.

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For GoodWe, which has been gaining significant market share across the various segments that it is engaged in, the past few years have been a strong foundation for the future, with steady expansion across segments it operates in, as well as distribution agreements in place with leading distributors across 6 continents now.

So What is The Altman-Z Score? 

Used by stock and investment analysts among others to evaluate a firm’s financial strength and stability, the score is a measure used to determine the financial stability of companies, particularly within the manufacturing space, taking into account profitability, liquidity, leverage, solvency, as well as activity ratios. Financial firms for instance are not usually considered due to their higher than normal leverage (debt) levels.

GoodWe has made significant strides in its efforts to create a new era of smart energy. Figures from the company’s Semi-Annual Report show that GoodWe shipped a total of 330,000 units of its grid-connected PV inverters across the globe in 2020. The same report also showed that it shipped about 156,500 inverter units to overseas markets in the first half of the year — accounting for 65.62% of its total inverter shipments, making it a global firm in more ways than one.

Beyond this, the company was able to make shipments of about 21,000 units in the fast-emerging segment of energy storage Power Conversion Systems (PCS) during the same period, totaling nearly the same amount as total annual shipments from the previous year (22,300 units).

In the past 3 quarters of 2021, GoodWe had managed to achieve a revenue of US $269 million — constituting a 65.12% year-on-year increase. This successful performance has come as a result of GoodWe’s continuous investments in the research and development of innovative net-zero-enabling systems. Accompanied by successful market penetration strategies that have enabled GoodWe to  gain market share profitably. 

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