SolarEdge Technologies Inc (SEDG)

Activity ratios

Short-term

Turnover ratios

	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
Inventory turnover	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	3.83
Receivables turnover	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	4.35
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
Working capital turnover	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	2.55

The activity ratios of SolarEdge Technologies Inc provide insights into the efficiency of the company's operations.

1. Inventory turnover: The company's inventory turnover has been declining over the past quarters, indicating that it takes longer for the company to sell its inventory. This may suggest issues with inventory management or slower sales.

2. Receivables turnover: SolarEdge has experienced fluctuations in its receivables turnover, with significant spikes and drops in certain quarters. A notably high receivables turnover in past quarters might indicate efficient collection of sales, while lower turnovers may reflect delays in collecting payments from customers.

3. Payables turnover: SolarEdge's payables turnover has also shown fluctuations, with some quarters indicating faster payments to suppliers and others showing slower payments. A higher payables turnover suggests more efficient management of trade payables, while lower turnover may indicate delays in settling obligations.

4. Working capital turnover: The working capital turnover has been relatively stable for SolarEdge, hovering around the 1 to 2 range. This ratio measures how efficiently the company utilizes its working capital to generate sales. A higher turnover indicates better utilization of working capital.

Overall, SolarEdge Technologies Inc should focus on optimizing its inventory turnover, smoothing out fluctuations in receivables turnover, and maintaining a balanced approach to payables turnover. Improving these activity ratios can lead to enhanced operational efficiency and financial performance.

Average number of days

		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
Days of inventory on hand (DOH)	days	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	95.35
Days of sales outstanding (DSO)	days	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	83.91
Number of days of payables	days	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	93.90

Days of inventory on hand (DOH) measures how many days it takes for a company to sell its inventory. SolarEdge Technologies Inc's DOH has been fluctuating over the analyzed periods, with an increasing trend, indicating potential inefficiencies in inventory management.

Days of sales outstanding (DSO) signifies the average number of days it takes for a company to collect its accounts receivable. SolarEdge's DSO has been volatile, with significant fluctuations, which could hint at challenges in collecting receivables efficiently.

Number of days of payables measures how long it takes for a company to pay its suppliers. SolarEdge's payables days have also exhibited variability, implying changes in payment practices and relationships with suppliers.

Overall, SolarEdge Technologies Inc's activity ratios show inconsistencies and potential issues in managing inventory, collecting receivables, and paying suppliers efficiently. Further analysis and attention to these areas may be required to improve operational effectiveness and cash flow management.

Long-term

	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
Fixed asset turnover	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	8.49
Total asset turnover	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	0.95

The fixed asset turnover ratio for SolarEdge Technologies Inc has shown a declining trend over the past few quarters, indicating a decrease in the efficiency of generating sales from fixed assets. The ratio stood at 2.54 as of June 30, 2024, down from a high of 8.49 on September 30, 2019. This suggests that the company may be experiencing challenges in optimizing the utilization of its fixed assets to generate revenue.

On the other hand, the total asset turnover ratio also exhibits a decreasing trend, indicating that the company is generating less revenue relative to its total assets. As of June 30, 2024, the ratio was 0.38, significantly lower than the ratio of 0.95 observed on December 31, 2019. This decline suggests that the company may be facing challenges in efficiently using its total assets to generate sales, which could impact its overall profitability and operational efficiency.

Overall, the declining trends in both the fixed asset turnover and total asset turnover ratios for SolarEdge Technologies Inc raise concerns about its asset utilization efficiency and revenue generation capabilities. It is crucial for the company to address these issues to enhance its operational performance and financial health in the long term.