SolarEdge Technologies Inc (SEDG)

Payables turnover

		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
Cost of revenue (ttm)	US$ in thousands	1,778,660	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
Payables	US$ in thousands	93,491	94,730	134,421	171,412	386,471	399,274	434,602	408,523	459,831	311,565	253,399	241,630	252,068	137,621	141,174	122,063	162,051	122,106	158,264	139,138
Payables turnover		19.02	19.45	10.88	10.85	5.88	6.34	5.90	5.96	4.93	6.51	6.97	6.40	5.29	8.65	7.56	7.96	6.16	8.40	6.74	7.56

December 31, 2024 calculation

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

The payables turnover ratio measures how efficiently a company manages its trade credit by comparing its purchases from suppliers to the average accounts payable balance. SolarEdge Technologies Inc's payables turnover has shown fluctuations over the reporting periods, ranging from a low of 4.93 to a high of 19.45.

The trend in SolarEdge Technologies Inc's payables turnover indicates variations in the company's payment practices and relationships with suppliers. A higher payables turnover ratio suggests that the company is paying its suppliers more frequently, potentially indicating strong cash flow management or negotiating better credit terms. Conversely, a lower payables turnover ratio could signal delayed payments to suppliers or the company holding onto cash longer, which may strain supplier relationships.

Analyzing the data points over time, we observe that the payables turnover ratio peaked at 19.45 in September 30, 2024, indicating a significant increase in payment frequency or efficiency in managing its accounts payable. However, the ratio dipped to 4.93 in December 31, 2022, potentially reflecting delays in payments or changes in the company's supply chain dynamics.

Overall, understanding the payables turnover trend for SolarEdge Technologies Inc provides insights into its working capital management practices, relationship with suppliers, and potential operational efficiencies or challenges affecting its financial performance.