Enphase Energy Inc (ENPH)

Payables 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
Payables	US$ in thousands	116,164	90,116	79,075	106,154	125,085	92,823	90,398	104,738	113,767	92,213	82,141	81,524	72,609	48,148	24,135	34,538	57,474	60,692	65,989	52,489
Payables turnover		10.61	16.54	19.83	14.05	10.84	12.84	11.46	8.72	7.27	7.82	7.23	5.92	5.90	8.68	18.63	13.35	7.01	5.52	4.13	4.51

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,232,398K ÷ $116,164K
= 10.61

The payables turnover ratio of Enphase Energy Inc has shown fluctuations over the past eight quarters. In Q2 2023, the company had a payables turnover ratio of 19.83, showing a significant increase from the previous quarter. This indicates that Enphase Energy Inc is able to pay off its accounts payable almost 20 times during the quarter.

Overall, the trend in payables turnover ratios for Enphase Energy Inc has been relatively healthy, with the ratio consistently above 10 over the past two years. This suggests that the company is effectively managing its accounts payable by efficiently paying off its short-term obligations.

The higher payables turnover ratios indicate that Enphase Energy Inc is managing its payables efficiently, possibly negotiating favorable credit terms with suppliers or accurately scheduling its payments. This efficient management of payables can contribute to improved cash flow and financial stability for the company. However, it is essential to monitor the trend in payables turnover ratios over time to ensure continued financial health and sustainability.