SolarEdge Technologies Inc (SEDG)

Current ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total current assets	US$ in thousands	2,034,310	3,304,310	2,899,660	1,711,290	1,719,340
Total current liabilities	US$ in thousands	1,041,080	893,231	889,717	525,181	436,099
Current ratio		1.95	3.70	3.26	3.26	3.94

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $2,034,310K ÷ $1,041,080K
= 1.95

The current ratio for SolarEdge Technologies Inc has shown a varying trend over the past five years. Starting at 3.94 in December 2020, the ratio decreased to 3.26 by December 2021, and remained unchanged at 3.26 by December 2022. However, there was an increase to 3.70 by December 2023, indicating improved short-term liquidity.

The ratio saw a significant decline to 1.95 by December 2024, which may raise concerns about the company's ability to meet its short-term obligations with its current assets. It is important for stakeholders to further investigate the reasons behind this decrease and assess the overall liquidity position of SolarEdge Technologies Inc.