SolarEdge Technologies Inc (SEDG)

Cash ratio

		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	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	303,904	259,498	214,229	338,468	551,122	557,744	727,849	783,112	678,329	745,534	1,002,770	530,089	526,588	524,112	685,157	827,146	1,048,110	428,372	324,072	223,901
Short-term investments	US$ in thousands	374,869	430,333	466,407	521,570	477,275	493,176	410,820	241,117	202,598	150,259	158,557	167,728	145,459	145,686	139,079	143,687	110,585	113,032	95,143	91,845
Total current liabilities	US$ in thousands	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	436,714
Cash ratio		0.75	1.22	1.03	0.96	1.17	1.17	1.27	1.15	1.27	1.46	2.04	1.33	1.66	1.68	2.07	2.23	3.03	1.34	1.08	0.72

September 30, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($303,904K + $374,869K) ÷ $903,812K
= 0.75

The cash ratio of SolarEdge Technologies Inc has shown some fluctuations over the past few quarters. The ratio measures the company's ability to cover its short-term liabilities using its cash and cash equivalents.

From December 2019 to March 2020, the cash ratio dropped from 3.03 to 0.72, indicating a significant decrease in the company's short-term liquidity position. However, the ratio improved steadily throughout 2020 and 2021, reaching a peak of 2.23 by December 2020.

In 2022, the cash ratio continued to be relatively strong, staying above 1.0 in each quarter. During March 2022, the ratio spiked to 2.04, reflecting a significant increase in liquidity compared to previous quarters.

The trend continued in 2023, with the ratio remaining above 1.0 and even reaching 2.07 by March 2023. However, the ratio dipped slightly in the following quarters but remained above 1.0, indicating the company's ability to cover short-term obligations with its available cash.

Overall, the cash ratio of SolarEdge Technologies Inc has shown fluctuations but generally remained above 1.0, suggesting that the company has maintained a healthy level of liquidity to meet its short-term obligations.