Enphase Energy Inc (ENPH)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,232,400 | 1,356,260 | 827,627 | 428,444 | 403,088 |
| Inventory | US$ in thousands | 213,595 | 149,708 | 74,400 | 41,764 | 32,056 |
| Inventory turnover | 5.77 | 9.06 | 11.12 | 10.26 | 12.57 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,232,400K ÷ $213,595K
= 5.77
Enphase Energy Inc's inventory turnover has shown a declining trend over the past five years, indicating that the company is selling its inventory less frequently.
The inventory turnover ratio decreased from 12.57 in 2019 to 5.77 in 2023. This downward trend suggests that Enphase has been carrying inventory for a longer period compared to previous years.
A lower inventory turnover ratio may point towards potential issues such as overstocking, obsolete inventory, or slowing sales. It could also indicate inefficiencies in inventory management, procurement processes, or production delays.
Enphase Energy Inc should closely monitor its inventory turnover ratio and take necessary steps to optimize inventory levels, improve sales efficiency, and align production with demand to enhance overall operational performance and profitability.
Peer comparison
Dec 31, 2023