SolarEdge Technologies Inc (SEDG)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 3,304,310 | 2,899,660 | 1,711,290 | 1,719,340 | 932,763 |
| Total current liabilities | US$ in thousands | 893,231 | 889,717 | 525,181 | 436,099 | 436,714 |
| Current ratio | 3.70 | 3.26 | 3.26 | 3.94 | 2.14 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $3,304,310K ÷ $893,231K
= 3.70
Solaredge Technologies Inc's current ratio has demonstrated variability over the past five years. The current ratio measures the company's ability to meet its short-term obligations with its current assets.
In 2023, the current ratio stands at 3.70, indicating an increase from the previous year. This suggests that Solaredge Technologies Inc has improved its short-term liquidity position compared to 2022.
Looking back, 2020 had the highest current ratio of 3.94, indicating that the company had a strong ability to cover its short-term liabilities with current assets at that time. In contrast, 2019 had the lowest current ratio of 2.14, indicating a weaker liquidity position compared to the subsequent years.
Overall, Solaredge Technologies Inc's current ratio has generally been above 3 in recent years, signaling a healthy liquidity position and the ability to meet short-term obligations comfortably. However, it is important to consider other financial metrics and factors in conjunction with the current ratio for a comprehensive assessment of the company's financial health.
Peer comparison
Dec 31, 2023