SolarEdge Technologies Inc (SEDG)

Receivables 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
Revenue (ttm)	US$ in thousands	1,511,153	2,237,038	2,976,528	3,551,186	3,662,604	3,399,088	3,110,279	2,771,492	2,461,173	2,213,456	1,963,865	1,770,057	1,581,748	1,433,542	1,459,271	1,519,387	1,591,848	1,585,007	1,425,660	1,271,107
Receivables	US$ in thousands	82,297	61,480	55,418	8,125	1,291,630	1,116,780	0	785,325	669,100	676,820	527,380	416,244	343,652	271,713	275,323	183,141	181,700	235,673	382,300	292,232
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

June 30, 2024 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $1,511,153K ÷ $82,297K
= 18.36

Receivables turnover indicates how efficiently a company collects its outstanding accounts receivable during a specific period. A higher receivables turnover ratio is generally favorable as it signifies that the company is able to collect its receivables quickly.

Analyzing SolarEdge Technologies Inc's receivables turnover over the past few quarters, we observe fluctuations in the ratio. For instance, in September 2023, the receivables turnover ratio spiked significantly to 437.07, indicative of a very efficient collection of receivables during that period. This sharp increase might be attributed to specific factors like improved credit policies, timely collections, or changes in customer payment patterns.

Conversely, in December 2019, the receivables turnover ratio was relatively lower at 3.73, implying a slower collection of receivables compared to other periods. This might raise concerns about the company's credit policy, potential issues with collections, or changes in business operations impacting the timely receipt of payments.

Overall, assessing SolarEdge Technologies Inc's receivables turnover across multiple periods allows us to identify trends in the company's collection efficiency, understand variations in cash flow management, and evaluate the effectiveness of its credit policies and customer relationships.