SolarEdge Technologies Inc (SEDG)

Inventory turnover

		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	Dec 31, 2019
Cost of revenue (ttm)	US$ in thousands	1,842,658	1,461,917	1,859,528	2,272,705	2,529,891	2,562,125	2,433,272	2,265,631	2,027,400	1,766,521	1,545,254	1,334,547	1,190,905	1,067,094	972,117	997,912	1,025,104	1,066,319	1,051,771	946,322
Inventory	US$ in thousands	798,383	1,505,100	1,549,120	1,443,450	1,177,800	984,194	874,212	729,201	561,352	470,272	432,504	380,143	304,713	321,915	340,038	331,696	297,027	264,460	198,557	170,798
Inventory turnover		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	5.54

September 30, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,842,658K ÷ $798,383K
= 2.31

The inventory turnover for SolarEdge Technologies Inc has shown fluctuations over the past several quarters. The inventory turnover ratio indicates how efficiently a company manages its inventory by showing how many times during a period inventory is sold and replaced.

In the most recent quarter ending September 30, 2024, the inventory turnover ratio was 2.31, which indicates that SolarEdge Technologies Inc turned over its inventory approximately 2.31 times during that quarter. The decrease from the previous quarter indicates a potential slowdown in inventory turnover efficiency.

Looking back over the past few quarters, there were fluctuations in the inventory turnover ratio, with some quarters showing higher ratios and others lower. Generally, a higher inventory turnover ratio is preferred as it suggests that a company is selling products quickly and efficiently managing its inventory levels.

It is important for SolarEdge Technologies Inc to monitor its inventory turnover ratio consistently to ensure optimal inventory management and cash flow. Any significant downward trend may signal potential issues with sales, obsolete inventory, or overstocking, while a consistently high ratio may indicate an opportunity to improve efficiency further.