Enphase Energy Inc (ENPH)

Payables turnover

		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
Cost of revenue (ttm)	US$ in thousands	701,245	672,733	759,100	980,584	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
Payables	US$ in thousands	90,032	112,417	79,646	71,751	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
Payables turnover		7.79	5.98	9.53	13.67	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

December 31, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $701,245K ÷ $90,032K
= 7.79

The payables turnover ratio for Enphase Energy Inc has fluctuated over the past few years, indicating varying efficiencies in managing its accounts payable. The ratio, which measures how quickly the company pays its suppliers, increased from 13.35 as of March 31, 2020, to a peak of 19.83 as of June 30, 2023, before declining to 7.79 as of December 31, 2024.

A high payables turnover ratio signifies that the company is efficiently managing its payables by paying suppliers quickly, which could indicate strong liquidity or good relationships with suppliers. Conversely, a low ratio may suggest potential liquidity issues or inefficient management of payables.

Enphase Energy Inc's payables turnover has shown fluctuations, with periods of both increasing and decreasing ratios. This variability may be influenced by factors such as changes in payment terms with suppliers, fluctuations in purchases, or shifts in the company's operations.

For a comprehensive analysis, further investigation into the company's financial and operational activities alongside industry benchmarks would be recommended to gain a deeper understanding of the implications of these payables turnover trends on Enphase Energy Inc's overall financial performance and working capital management.