Enphase Energy Inc (ENPH)

Days of inventory on hand (DOH)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Inventory turnover		4.25	4.24	4.31	4.72	5.77	8.56	9.44	9.91	9.06	8.14	7.95	9.47	11.12	11.03	15.72	13.83	10.26	11.13	14.41	13.32
DOH	days	85.89	86.18	84.66	77.38	63.26	42.64	38.66	36.84	40.29	44.86	45.89	38.55	32.81	33.11	23.22	26.39	35.58	32.80	25.32	27.40

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.25
= 85.89

Enphase Energy Inc's Days of Inventory on Hand (DOH) has shown fluctuations over the period under review. The metric indicates the average number of days it takes for the company to sell its inventory.

From March 31, 2020, to September 30, 2021, DOH ranged between 23.22 to 35.58 days, suggesting efficient inventory management. However, from September 30, 2021, to December 31, 2024, there was a notable increase in DOH. This trend indicates either slower sales or an increase in inventory levels relative to sales.

The significant jump from 38.66 days on June 30, 2023, to 63.26 days on December 31, 2023, and further to 77.38 days on March 31, 2024, indicates a potential buildup of excess inventory that the company may struggle to sell in a timely manner.

The continued increase in DOH to 85.89 days by December 31, 2024, raises concerns about inventory management efficiency. Higher DOH can tie up working capital, increase carrying costs, and may signal potential issues with demand forecasting or production inefficiencies.

Overall, Enphase Energy Inc should closely monitor its inventory levels, sales performance, and supply chain processes to optimize inventory turnover and ensure efficient working capital management.