SolarEdge Technologies Inc (SEDG)

Working capital turnover

		Dec 31, 2024	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
Revenue (ttm)	US$ in thousands	901,456	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
Total current assets	US$ in thousands	2,034,310	2,118,120	2,893,200	2,989,070	3,304,310	3,363,470	3,449,120	3,242,070	2,899,660	2,451,770	2,283,810	2,462,320	1,711,290	1,552,550	1,488,910	1,585,110	1,719,340	1,744,980	1,073,000	955,919
Total current liabilities	US$ in thousands	1,041,080	903,812	566,824	658,890	893,231	876,651	897,729	900,042	889,717	694,480	612,174	568,741	525,181	405,507	399,585	397,726	436,099	382,537	405,065	389,681
Working capital turnover		0.91	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

December 31, 2024 calculation

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

The working capital turnover ratio for SolarEdge Technologies Inc has shown fluctuations over the past few years. It measures the efficiency with which the company utilizes its working capital to generate sales revenue.

From March 31, 2020, to June 30, 2020, the ratio decreased from 2.80 to 2.38, indicating a slight decline in the company's ability to generate sales with its working capital. The ratio further dropped significantly to 1.12 by September 30, 2020, and then slightly improved to 1.14 by December 31, 2020.

Throughout the following years until December 31, 2024, the working capital turnover ratio fluctuated within a range of 0.65 to 1.66, showing mixed performance. Particularly noteworthy is the decline in the ratio from March 31, 2024 (1.45) to June 30, 2024 (0.65), which indicates a relatively weak performance in utilizing working capital effectively during that period.

Overall, the working capital turnover ratio for SolarEdge Technologies Inc has displayed variability, implying the need for the company to closely monitor and manage its working capital to optimize its efficiency in generating sales revenue.