SolarEdge Technologies Inc (SEDG)

Payables 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
Payables	US$ in thousands	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	157,148
Payables turnover		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	6.02

September 30, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,842,658K ÷ $94,730K
= 19.45

The payables turnover ratio of SolarEdge Technologies Inc has shown fluctuations over the periods analyzed. The payables turnover ratio measures how efficiently a company is managing its payments to suppliers by indicating the number of times a company pays off its accounts payable during a specific period.

The payables turnover ratio for SolarEdge has generally been on an increasing trend from 2019 to 2024, indicating improvements in the efficiency of managing its payables. From 2019 to 2023, the ratio increased steadily until it peaked at 10.88 in Jun 2024, suggesting that the company was managing to pay off its accounts payable almost 11 times during that period.

However, there was a slight decrease in the payables turnover ratio in Sep 2024 compared to Jun 2024, which may indicate a slowdown in the pace of paying off suppliers relative to the previous quarter. It is important to monitor this trend in upcoming periods to assess whether it is a temporary variation or a developing pattern.

Overall, a higher payables turnover ratio suggests that SolarEdge Technologies Inc is effectively managing its payables by paying its suppliers in a timely manner, which can be beneficial for maintaining good relationships with suppliers and optimizing working capital management.