SolarEdge Technologies Inc (SEDG)

Days of inventory on hand (DOH)

		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	Dec 31, 2019	Sep 30, 2019
Inventory turnover		0.97	1.20	1.57	2.15	2.60	2.78	3.11	3.61	3.76	3.57	3.51	3.91	3.31	2.86	3.01	3.45	4.03	5.30	5.54	3.83
DOH	days	375.78	304.07	231.82	169.93	140.21	131.14	117.48	101.06	97.17	102.16	103.97	93.39	110.11	127.67	121.32	105.76	90.52	68.91	65.88	95.35

June 30, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 0.97
= 375.78

The days of inventory on hand (DOH) for SolarEdge Technologies Inc have shown fluctuations over the periods analyzed. Generally, DOH represents the average number of days it takes for a company to sell its inventory.

The trend observed indicates that SolarEdge's DOH has been gradually increasing over the past few quarters, suggesting that the company may be carrying more inventory relative to its sales. A higher DOH may imply potential inefficiencies in inventory management, as excess inventory ties up working capital and may lead to higher storage costs.

On the positive side, a company may strategically hold higher inventory levels to meet potential demand fluctuations or manage supply chain disruptions. However, sustained high levels of DOH without corresponding sales growth could point towards inventory obsolescence or potential write-downs in the future.

It is essential for SolarEdge to closely monitor its inventory levels and ensure they are aligned with demand to optimize working capital usage and improve overall efficiency. Further analysis of inventory turnover and comparison with industry benchmarks would provide deeper insights into the effectiveness of SolarEdge's inventory management strategies.