Sinovoltaics analyzed publicly traded inverter manufacturers using a balance sheet-based model and publicly available financial information to track their financial strength over the past three years. The top five in the latest ranking are Hoymiles Power Electronics, Enphase, Kstar, Eaton and Goodwe.
Sinovoltaics, a Hong Kong-based technical compliance and quality assurance services company, has released the second edition of its report Financial stability ranking of Sinovoltaics PV inverter manufacturer. The company says the results, which have been calculated since June 2020, provide insight into the stability of the scores over time. The report, which has a global scope, can be downloaded for free.
Sinovoltaics’ financial stability rankings are based on a so-called Altmann Z-score, a quantitative formula that uses multiple operating income and balance sheet values to measure a company’s financial health. It assesses a company’s financial strength through a credit strength test based on profitability, leverage, liquidity, solvency and activity ratios, Sinovoltaics said.
A score of 1.1 or lower indicates a higher probability of bankruptcy within the next two years, while a higher score of 2.6 or high is high.
The inverter manufacturers topping the rankings are China’s Hoymiles Power Electronics, US-based microinverter specialist Enphase Energy, Shenzen-based Kstar Science and Technology, Irish energy management specialist Eaton, China’s Goodwe and Sinexcel, Taiwan’s Delta Electronics, Clenergy and Hopewind, both based in China and Switzerland’s ABB.
“Overall, the global PV inverter market has been growing steadily in parallel with global solar PV installations. In this regard, we can see in our Sinovoltaics Manufacturer Ranking reports that the vast majority of included inverter manufacturers are financially healthy or stable,” said Niclas Weimar, Chief Technology Officer of Sinovoltaics. pv magazineadding that there are two trends in inverter manufacturing that are worth mentioning.
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“A [trend] is that Chinese inverter manufacturers are overtaking their European and US-American peers in terms of global market share, with Sungrow and Huawei having a share of more than 50%,” Weimar said.
The other trend is that inverter manufacturers, along with many PV module manufacturers, are “leveraging battery energy storage production,” with Sungrow also leading the way here, measured in MWh shipments, Weimar said.
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