SolarEdge Technologies Inc (SEDG)

Working capital turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	901,456	2,976,530	3,110,280	1,963,860	1,459,270
Total current assets	US$ in thousands	2,034,310	3,304,310	2,899,660	1,711,290	1,719,340
Total current liabilities	US$ in thousands	1,041,080	893,231	889,717	525,181	436,099
Working capital turnover		0.91	1.23	1.55	1.66	1.14

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $901,456K ÷ ($2,034,310K – $1,041,080K)
= 0.91

SolarEdge Technologies Inc's working capital turnover has shown fluctuations over the past five years. The ratio increased from 1.14 in December 31, 2020, to 1.66 in December 31, 2021, indicating an improvement in the company's efficiency in managing its working capital during that period. However, there was a slight decrease in the ratio to 1.55 by December 31, 2022, followed by a more significant drop to 1.23 by December 31, 2023. This suggests that the company may have faced challenges in effectively utilizing its working capital during those years.

By the end of December 31, 2024, SolarEdge Technologies Inc's working capital turnover ratio declined further to 0.91, reaching the lowest level in the data provided. This sharp decrease indicates a potential inefficiency in managing working capital as the company may not be generating sufficient sales revenue relative to the amount of working capital invested.

Overall, the trend in SolarEdge Technologies Inc's working capital turnover suggests varying degrees of effectiveness in utilizing working capital over the years, with potential areas for improvement in its working capital management practices.