Analysis of Inventory
Inventory Disclosure
SolarEdge Technologies Inc., balance sheet: inventory
US$ in thousands
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
- Raw materials
- The value of raw materials has demonstrated a significant upward trend over the five-year period. Starting at $39.38 million in 2018, it increased consistently each year, reaching $503.26 million in 2022. This represents more than a twelvefold increase, indicating a substantial buildup of raw material inventory.
- Work in process
- Work in process inventory showed relative stability with minor fluctuations. Beginning at $18.12 million in 2018, it rose slightly to $20.75 million in 2019 and $25.46 million in 2020. However, in 2021 there was a notable decline to $13.86 million, followed by a recovery to $23.41 million in 2022. Overall, work in process levels have remained within a narrower range compared to raw materials.
- Finished goods
- Finished goods inventory increased substantially over the period, though with some volatility. It started at $84.02 million in 2018 and saw a modest increase to $85.33 million in 2019. The figure then more than doubled to $177.87 million in 2020 before declining to $118.89 million in 2021. In 2022, finished goods rebounded strongly to $202.54 million, marking the highest level in the five years observed.
- Inventories, net
- Net inventories have exhibited robust growth, reflecting the combined increases in raw materials, work in process, and finished goods. From $141.52 million in 2018, the amount rose steadily each year, reaching $729.20 million in 2022. The most notable growth occurred between 2021 and 2022, when inventories nearly doubled, indicating a significant accumulation of stock.