SolarEdge Technologies Inc (SEDG)

Receivables 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
Revenue (ttm)	US$ in thousands	1,046,751	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
Receivables	US$ in thousands	32,297	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
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

September 30, 2024 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $1,046,751K ÷ $32,297K
= 32.41

The receivables turnover of SolarEdge Technologies Inc has displayed fluctuations over the past few quarters. In the most recent quarter, ending September 30, 2024, the receivables turnover ratio stood at 32.41, indicating that the company collected its outstanding receivables approximately 32 times during that period. This represents a significant improvement compared to the previous quarter, where the ratio was 18.36.

Looking back over the past year, there have been substantial variations in the receivables turnover ratio, with some quarters showing much lower turnover rates. For instance, in the quarter ending June 30, 2023, the ratio was exceptionally low at 2.84, reflecting a slower collection of receivables during that period. However, this was followed by a remarkable increase in the next quarter, reaching 437.07, which suggests a significant improvement in the efficiency of collecting outstanding invoices.

Overall, the trend in the receivables turnover ratio for SolarEdge Technologies Inc has been somewhat erratic, with periods of both high and low turnover rates. It is essential for the company to closely monitor this ratio to ensure efficient management of accounts receivable and timely collection of outstanding payments from customers.