Enphase Energy Inc (ENPH)

Receivables 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
Revenue (ttm)	US$ in thousands	1,330,383	1,250,240	1,420,449	1,828,109	2,290,786	2,712,868	2,796,499	2,615,577	2,330,853	2,018,920	1,735,726	1,521,587	1,382,049	1,234,169	1,061,153	870,634	774,425	719,618	721,172	729,728
Receivables	US$ in thousands	223,749	232,225	277,475	364,364	445,959	560,286	520,306	516,106	440,896	367,647	312,451	358,310	333,626	273,012	281,154	236,090	182,165	122,386	89,504	95,484
Receivables turnover		5.95	5.38	5.12	5.02	5.14	4.84	5.37	5.07	5.29	5.49	5.56	4.25	4.14	4.52	3.77	3.69	4.25	5.88	8.06	7.64

December 31, 2024 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $1,330,383K ÷ $223,749K
= 5.95

The receivables turnover of Enphase Energy Inc has shown fluctuations over the period under consideration, starting at 7.64 on March 31, 2020, and gradually declining to 5.02 by March 31, 2024. This ratio measures how efficient the company is at collecting outstanding receivables during a specific period.

A higher receivables turnover ratio indicates that the company is collecting outstanding receivables more frequently and efficiently. Conversely, a lower ratio suggests delays in collecting receivables, which may impact the company's cash flow and liquidity.

Enphase Energy Inc's receivables turnover ratio experienced a general downward trend until March 31, 2024, where it stabilized around 5. This trend may be indicative of changes in the company's credit policy, customer payment behavior, or overall market conditions impacting collections.

It is essential for the company to monitor its receivables turnover ratio regularly to ensure effective management of accounts receivable and maintain healthy cash flows. By analyzing this ratio, Enphase Energy Inc can identify potential areas for improvement in its accounts receivable management processes.