SolarEdge Technologies Inc (SEDG)

Activity ratios

Short-term

Turnover ratios

	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
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
Receivables turnover	32.41	18.36	36.39	53.71	437.07	2.84	3.04	—	3.53	3.68	3.27	3.72	4.25	4.60	5.28	5.30	8.30	8.76	6.73	3.73
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
Working capital turnover	0.86	0.65	0.96	1.23	1.43	1.44	1.45	1.55	1.58	1.47	1.17	1.66	1.54	1.45	1.21	1.14	1.12	2.38	2.80	2.87

SolarEdge Technologies Inc's activity ratios provide insights into how efficiently the company manages its assets and operations.

1. Inventory turnover: SolarEdge's inventory turnover has fluctuated over the periods provided, but has generally remained above 1, indicating that the company is effectively managing its inventory levels. A high turnover ratio suggests that the company is selling through its inventory quickly, which can prevent excess stock holding costs.

2. Receivables turnover: The receivables turnover ratio has varied significantly, with a sharp increase in Sep 30, 2024. This could indicate that the company has been more effective in collecting payments from customers in recent periods. However, the ratio was exceptionally high in Sep 30, 2023, which may indicate aggressive credit policies or exceptional circumstances.

3. Payables turnover: SolarEdge's payables turnover has also fluctuated but has generally been above 5, indicating that the company is efficient in paying its suppliers. A higher ratio suggests that the company is paying its bills promptly, which can help maintain good relationships with suppliers.

4. Working capital turnover: The working capital turnover ratio has varied over the periods provided, but has generally been above 1. This indicates that the company is effectively using its working capital to generate sales. A higher turnover ratio implies that the company is efficiently utilizing its current assets to support its operations.

In general, SolarEdge Technologies Inc's activity ratios show that the company is managing its assets and operations efficiently, with some fluctuations in performance over the periods analyzed. Continued monitoring of these ratios will be important to track the company's operational effectiveness and efficiency over time.

Average number of days

		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
Days of inventory on hand (DOH)	days	158.15	375.78	304.07	231.82	169.93	140.21	131.14	117.48	101.06	97.17	102.16	103.97	93.39	110.11	127.67	121.32	105.76	90.52	68.91	65.88
Days of sales outstanding (DSO)	days	11.26	19.88	10.03	6.80	0.84	128.72	119.92	—	103.43	99.23	111.61	98.02	85.83	79.30	69.18	68.87	44.00	41.66	54.27	97.88
Number of days of payables	days	18.76	33.56	33.65	62.07	57.61	61.91	61.28	74.08	56.09	52.36	57.07	68.94	42.18	48.29	45.83	59.27	43.48	54.17	48.29	60.61

Days of Inventory on Hand (DOH) measures how efficiently a company manages its inventory. SolarEdge Technologies Inc's DOH has fluctuated over the periods, indicating variations in inventory management efficiency.

Days of Sales Outstanding (DSO) reflects how quickly the company collects its accounts receivable. SolarEdge Technologies Inc's DSO has shown inconsistency, with significant fluctuations observed in different periods.

Number of Days of Payables indicates how long the company takes to pay its suppliers. SolarEdge Technologies Inc's payables days have also varied, suggesting changes in the company's payment policies or supplier relationships.

In conclusion, SolarEdge Technologies Inc's activity ratios show fluctuations over the periods, indicating varying efficiency in managing inventory, collecting receivables, and paying suppliers. These fluctuations may reflect changes in operational strategies and business conditions.

Long-term

	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
Fixed asset turnover	2.47	2.54	3.70	4.84	5.87	6.31	6.11	5.72	5.64	5.03	4.67	4.79	5.01	4.65	4.59	4.81	5.90	7.03	8.09	8.06
Total asset turnover	0.37	0.38	0.54	0.65	0.76	0.78	0.76	0.73	0.71	0.65	0.60	0.68	0.67	0.62	0.58	0.60	0.67	0.99	1.05	0.95

The fixed asset turnover ratio for SolarEdge Technologies Inc has shown a declining trend over the past few quarters, indicating that the company is generating fewer sales from its fixed assets. However, the ratio remains at a relatively healthy level, with values ranging between 2.47 and 8.09. This suggests that the company is efficiently utilizing its fixed assets to generate sales revenue.

On the other hand, the total asset turnover ratio, which measures how efficiently the company is generating sales from all its assets, has also shown a decreasing trend over the same period. The values fluctuate between 0.37 and 1.05, with the ratio generally trending downwards. This implies that SolarEdge Technologies Inc may be becoming less efficient in generating sales from its total assets.

Overall, while the fixed asset turnover indicates efficient use of fixed assets by SolarEdge Technologies Inc, the declining trend in total asset turnover may suggest a need for the company to improve its overall asset utilization efficiency to drive sales growth and profitability.