SolarEdge Technologies Inc (SEDG)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		2.75	1.57	3.11	3.51	3.01
DOH	days	132.54	231.82	117.48	103.97	121.32

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.75
= 132.54

The days of inventory on hand (DOH) is a metric that measures how many days, on average, a company holds its inventory before selling it. In the case of SolarEdge Technologies Inc, the trend in DOH over the past five years has been fluctuating.

As of December 31, 2020, the company had inventory on hand equivalent to around 121.32 days of sales. By December 31, 2021, the DOH had decreased to approximately 103.97 days, indicating an improvement in inventory management efficiency. However, by December 31, 2022, the DOH increased to 117.48 days, showing a slight increase in the time it takes to sell inventory.

The most significant increase in DOH occurred by December 31, 2023, where it surged to a high of 231.82 days. This substantial increase suggests potential issues with inventory management or perhaps overstocking of inventory. Finally, by December 31, 2024, there was a decrease in DOH to 132.54 days, though still significantly higher than the levels seen in 2021 and 2022.

Overall, the DOH trend for SolarEdge Technologies Inc indicates fluctuations in inventory management efficiency over the five-year period, with a notable spike in 2023 that may require further investigation to understand the underlying reasons and implications for the company's operations.