Enphase Energy Inc (ENPH)

Receivables 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
Revenue (ttm)	US$ in thousands	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	624,333	506,590	404,535	346,337
Receivables	US$ in thousands	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	145,413	133,689	97,537	81,715
Receivables turnover		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	4.29	3.79	4.15	4.24

December 31, 2023 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $2,290,786K ÷ $445,959K
= 5.14

The receivables turnover ratio measures how efficiently a company is collecting its accounts receivable during a specific period. A higher turnover ratio indicates that the company is collecting receivables more quickly.

Analyzing Enphase Energy Inc's receivables turnover over the past eight quarters, we observe some fluctuations in the ratio. In Q4 2023, the receivables turnover was 5.14, which means that, on average, Enphase collected its outstanding receivables approximately 5.14 times during that quarter. This represents a slight increase from the previous quarter (Q3 2023) ratio of 4.84.

Looking further back, we notice that the company had relatively consistent receivables turnover ratios in the range of 5.07 to 5.56 during the first three quarters of 2022. However, the ratio dropped to 4.25 in Q1 2022, indicating a potential delay in collecting receivables during that period.

Overall, the trends suggest that Enphase Energy Inc has been effectively managing its accounts receivable turnover, with generally stable ratios above 5.00 in recent quarters. Monitoring and maintaining a healthy receivables turnover ratio is crucial for the company's liquidity and cash flow management.