SolarEdge Technologies Inc (SEDG)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	1,778,660	2,272,700	2,265,630	1,334,550	997,912
Inventory	US$ in thousands	645,897	1,443,450	729,201	380,143	331,696
Inventory turnover		2.75	1.57	3.11	3.51	3.01

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $1,778,660K ÷ $645,897K
= 2.75

SolarEdge Technologies Inc's inventory turnover has fluctuated over the past five years. In December 2020, the inventory turnover was 3.01 times, indicating that the company sold and replaced its inventory approximately three times during that year.

By December 2021, the inventory turnover had improved to 3.51 times, suggesting that the company managed its inventory more efficiently as it sold and replaced its inventory over three and a half times throughout the year.

However, in December 2022, the inventory turnover decreased slightly to 3.11 times. This could indicate a small slowdown in the rate of inventory turnover compared to the previous year.

In December 2023, there was a significant drop in the inventory turnover to 1.57 times. This sharp decline may suggest issues with inventory management efficiency, as the company sold and replaced its inventory fewer times during the year.

The inventory turnover improved in December 2024 to 2.75 times, but it still remained below the levels seen in the earlier years. This suggests that the company may have made efforts to improve inventory turnover but may still be working on optimizing its inventory management practices.

Overall, the trend in SolarEdge Technologies Inc's inventory turnover shows variability over the five-year period, with some fluctuations in efficiency. Monitoring and improving inventory turnover can be crucial for the company to manage its inventory effectively and enhance its financial performance.