SolarEdge Technologies Inc (SEDG)

Working capital 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
Total current assets	US$ in thousands	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	932,763	834,803
Total current liabilities	US$ in thousands	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	436,714	335,407
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

June 30, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,511,153K ÷ ($2,893,200K – $566,824K)
= 0.65

SolarEdge Technologies Inc's working capital turnover has displayed fluctuations over the past few quarters. The working capital turnover ratio indicates the efficiency of the company in utilizing its working capital to generate sales revenue.

The trend shows that the company's working capital turnover has ranged from a low of 0.65 to a high of 2.87 over the period provided. A general observation is that the ratio has generally been above 1, indicating that SolarEdge has been effectively utilizing its working capital to generate revenue.

Analyzing the data, there appear to be spikes and dips in the ratio, which could suggest varying levels of efficiency in managing working capital over the given quarters. Quarter over quarter changes in the ratio can be reflective of changes in the company's operating cycle, cash conversion cycle, or management of current assets and liabilities.

The considerable variance in the working capital turnover ratio implies that SolarEdge has experienced shifts in its working capital management effectiveness over the observed period. It would be beneficial for the company to further investigate the reasons behind these fluctuations to ensure optimal utilization of its working capital going forward.