SolarEdge Technologies Inc (SEDG)

Current ratio

		Dec 31, 2024	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
Total current assets	US$ in thousands	2,034,310	2,118,120	2,893,200	2,989,070	3,304,310	3,363,470	3,449,120	3,242,070	2,899,660	2,451,770	2,283,810	2,462,320	1,711,290	1,552,550	1,488,910	1,585,110	1,719,340	1,744,980	1,073,000	955,919
Total current liabilities	US$ in thousands	1,041,080	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
Current ratio		1.95	2.34	5.10	4.54	3.70	3.84	3.84	3.60	3.26	3.53	3.73	4.33	3.26	3.83	3.73	3.99	3.94	4.56	2.65	2.45

December 31, 2024 calculation

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

SolarEdge Technologies Inc's current ratio has shown fluctuation over the periods provided. The current ratio, a measure of a company's ability to cover its short-term liabilities with its current assets, ranged from a low of 1.95 on December 31, 2024, to a high of 5.10 on June 30, 2024.

Generally, a current ratio of 2 or higher is considered healthy as it indicates the company has more current assets than current liabilities to meet its short-term obligations. SolarEdge Technologies Inc has maintained a current ratio above 2 for most periods, indicating that it has sufficient current assets to cover its current liabilities.

The current ratio peaked at 5.10 on June 30, 2024, suggesting a strong liquidity position at that time. However, it experienced a significant decline to 2.34 on September 30, 2024, which might indicate potential liquidity challenges or a change in the composition of its current assets and liabilities at that point.

Overall, SolarEdge Technologies Inc's current ratio has shown variability but has generally remained above 2, indicating a reasonable ability to meet its short-term obligations with its current assets. It will be important to monitor future trends in the company's current ratio to assess its liquidity position accurately.