Enphase Energy Inc (ENPH)

Inventory turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	1,232,398	1,490,441	1,568,169	1,491,584	1,356,258	1,191,712	1,036,076	913,141	827,627	721,123	593,484	482,379	428,444	417,694	449,523	461,147	403,088	335,061	272,448	236,868
Inventory	US$ in thousands	213,595	174,114	166,111	150,563	149,708	146,451	130,266	96,436	74,400	65,405	37,756	34,876	41,764	37,535	31,186	34,617	32,056	30,231	20,094	12,971
Inventory turnover		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	12.57	11.08	13.56	18.26

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,232,398K ÷ $213,595K
= 5.77

Enphase Energy Inc's inventory turnover has shown fluctuation over the past eight quarters. The inventory turnover ratio measures how efficiently a company manages its inventory by indicating how many times the company's inventory is sold and replaced over a period of time.

In Q4 2023, the inventory turnover was 5.77, indicating that Enphase Energy Inc sold and replaced its inventory approximately 5.77 times during the quarter. This represents a decrease from the previous quarter's ratio of 8.56 in Q3 2023. The decrease in inventory turnover may suggest slower inventory movement or potential issues with inventory management efficiency during Q4 2023.

Looking further back, Enphase Energy Inc experienced a peak inventory turnover ratio of 9.91 in Q1 2023, demonstrating a strong performance in managing inventory during that period. The company maintained relatively high inventory turnover ratios throughout 2022, with ratios ranging from 7.95 to 9.47.

Overall, Enphase Energy Inc's inventory turnover has exhibited variability, with some quarters showing higher efficiency in inventory management compared to others. It is important for the company to closely monitor its inventory turnover ratios to ensure optimal balance between maintaining enough inventory to meet customer demand while avoiding excess inventory accumulation.