SolarEdge Technologies Inc (SEDG)

Payables 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
Payables	US$ in thousands	93,491	386,471	459,831	252,068	162,051
Payables turnover		19.02	5.88	4.93	5.29	6.16

December 31, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $1,778,660K ÷ $93,491K
= 19.02

The payables turnover ratio for SolarEdge Technologies Inc has exhibited fluctuations over the years. Starting at 6.16 in December 31, 2020, the ratio decreased to 5.29 by December 31, 2021. The trend continued as it further declined to 4.93 by December 31, 2022. However, there was an improvement in the company's payables turnover ratio by December 31, 2023, reaching 5.88. The most significant change occurred by December 31, 2024, surging to 19.02, indicating a faster turnover of payables during that period.

Overall, it is essential for the company to closely monitor and manage its payables turnover ratio to ensure efficient management of its accounts payable and relationships with suppliers. The substantial increase in the payables turnover ratio in 2024 could be a result of improved payment practices or negotiation leverage with suppliers, potentially leading to better working capital management.