Enphase Energy Inc (ENPH)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	701,245	1,232,400	1,356,260	827,627	428,444
Inventory	US$ in thousands	165,004	213,595	149,708	74,400	41,764
Inventory turnover		4.25	5.77	9.06	11.12	10.26

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $701,245K ÷ $165,004K
= 4.25

The inventory turnover for Enphase Energy Inc has shown fluctuations over the years based on the provided data. In December 31, 2020, the inventory turnover was 10.26 times, indicating that the company's inventory was sold and replaced 10.26 times during that year. The ratio increased to 11.12 times by December 31, 2021, suggesting a more efficient management of inventory.

However, the inventory turnover then decreased to 9.06 times by December 31, 2022, and further dropped to 5.77 times by December 31, 2023. The decreasing trend may imply potential issues such as overstocking or lower sales volume relative to inventory levels during these periods.

By December 31, 2024, the inventory turnover reached 4.25 times, indicating a significant decline in the efficiency of inventory management compared to previous years. A lower inventory turnover ratio could suggest that Enphase Energy Inc is facing challenges in selling its inventory promptly, potentially leading to higher carrying costs or obsolete inventory.

Overall, monitoring Enphase Energy Inc's inventory turnover ratio over time is crucial for assessing the company's operational efficiency in managing its inventory levels and sales performance.