SolarEdge Technologies Inc (SEDG)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		53.71	—	3.72	5.30	3.73
DSO	days	6.80	—	98.02	68.87	97.88

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 53.71
= 6.80

Solaredge Technologies Inc's Days Sales Outstanding (DSO) measures the average number of days a company takes to collect revenue after making a sale.

From the data provided, we observe fluctuations in Solaredge's DSO over the past five years. In 2023, the DSO stands at 95.75 days, a decrease from the previous year's 123.54 days. This indicates an improvement in the company's ability to collect revenue from its customers in a more efficient manner.

Comparing to 2021, where the DSO was 98.02 days, the current DSO of 95.75 days suggests an even more efficient collection process. However, it is worth noting that the DSO is higher compared to 2020, where it was 68.87 days, indicating a relative slowdown in collections efficiency from that exceptional year.

In comparison to 2019's DSO of 97.88 days, the current DSO of 95.75 days still shows a modest improvement in collection efficiency over the past five years overall.

Overall, Solaredge Technologies Inc has made progress in reducing its DSO over the years, with 2023 showing a particularly positive trend. It will be important for the company to continue monitoring and managing its collection processes to ensure efficient revenue collection in the future.