SolarEdge Technologies Inc (SEDG)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	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	247,342
Short-term investments	US$ in thousands	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	85,343
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
Cash ratio		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	0.99

June 30, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($259,498K + $430,333K) ÷ $566,824K
= 1.22

The cash ratio of SolarEdge Technologies Inc has shown some fluctuations over the past quarters. The cash ratio, which measures a company's ability to cover its short-term liabilities with its cash and cash equivalents, has generally been above 1, indicating that the company has enough liquid assets to cover its short-term obligations.

The cash ratio increased steadily from the end of 2019 through the first half of 2021, reaching a peak of 3.03 at the end of September 2020. This may suggest strong liquidity levels during that period.

However, the cash ratio started to decline in the latter half of 2021 and into 2022, hitting a low of 0.72 at the end of March 2022. This could indicate a decrease in the company's ability to cover its short-term liabilities with available cash during this period.

From the second quarter of 2022 onwards, there was a noticeable improvement in the cash ratio, reaching a high of 2.04 at the end of March 2022 before fluctuating around the 1.00 level in subsequent quarters.

Overall, while the cash ratio of SolarEdge Technologies Inc has shown some volatility, it generally indicates that the company has maintained a healthy level of liquidity to meet its short-term financial obligations during the periods in question.