SolarEdge Technologies Inc (SEDG)

Days of inventory on hand (DOH)

		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
Inventory turnover		2.75	2.31	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
DOH	days	132.54	158.15	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

December 31, 2024 calculation

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

Days of Inventory on Hand (DOH) is a financial ratio that indicates how many days, on average, a company holds onto its inventory before selling it. For SolarEdge Technologies Inc, the trend in DOH has been fluctuating over the past few years.

Starting from March 31, 2020, SolarEdge had 68.91 days of inventory on hand, which increased steadily to a peak of 375.78 days on June 30, 2024, before decreasing to 132.54 days on December 31, 2024. This significant spike and subsequent decline in DOH may be indicative of issues in inventory management and demand forecasting during that period.

Overall, fluctuations in DOH can be influenced by various factors, such as changes in demand, production efficiency, and supply chain disruptions. It is essential for SolarEdge to closely monitor its inventory levels to ensure optimal balance between maintaining sufficient stock for operations and minimizing excess inventory holding costs.