SolarEdge Technologies Inc (SEDG)

Payables turnover

		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	Sep 30, 2019
Cost of revenue (ttm)	US$ in thousands	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	514,012
Payables	US$ in thousands	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	132,230
Payables turnover		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	3.89

June 30, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,461,917K ÷ $134,421K
= 10.88

The payables turnover ratio for SolarEdge Technologies Inc has fluctuated over the periods analyzed. The ratio indicates how many times payables are being turned over within a specific period.

Overall, there is a general increasing trend in the payables turnover ratio from the end of 2019 through mid-2021, followed by some variability in the later periods. This indicates that the company is managing its accounts payables more effectively and efficiently during these initial periods.

The payables turnover ratio peaked at 10.88 in June 2024, indicating that the company's payables were being paid off and replenished nearly 11 times during that quarter. This signifies a strong ability to manage vendor payments efficiently.

However, it is noteworthy that the ratio decreased to 4.93 in December 2022 and then fluctuated between 5.88 and 6.97 in the subsequent periods. This may suggest delays in paying off payables or changes in the company's payment terms with suppliers.

The company should continue to monitor and manage its payables turnover ratio effectively to ensure that it maintains healthy relationships with its suppliers while optimizing its working capital management.