SolarEdge Technologies Inc (SEDG)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 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 | 2.14 | 2.49 |
| Quick ratio | 1.36 | 1.13 | 1.02 | 1.18 | 2.61 | 2.51 | 1.15 | 2.40 | 2.56 | 3.23 | 2.33 | 2.68 | 2.54 | 2.76 | 2.86 | 3.51 | 1.79 | 1.68 | 1.60 | 1.86 |
| 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 |
The liquidity ratios of SolarEdge Technologies Inc show a consistent trend of strong liquidity position over the periods analyzed. The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, has been consistently above 3, reflecting a healthy liquidity position. The quick ratio, which provides a more conservative measure of liquidity by excluding inventory from current assets, also demonstrates a strong ability to meet short-term liabilities, with values consistently above 1.
The cash ratio, which is the most stringent measure of liquidity as it only considers cash and cash equivalents to cover short-term obligations, shows a steady and strong trend over the periods analyzed. The cash ratio values are consistently healthy, above 1, indicating the company's ability to cover its short-term liabilities with cash on hand.
Overall, the liquidity ratios suggest that SolarEdge Technologies Inc has a robust liquidity position, with ample resources to meet its short-term obligations efficiently. This strong liquidity position can provide the company with financial flexibility and resilience to navigate through potential challenges and capitalize on growth opportunities.
See also:
SolarEdge Technologies Inc Liquidity Ratios (Quarterly Data)
Additional liquidity measure
| 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 conversion cycle | days | 362.10 | 280.46 | 176.55 | 113.16 | 207.01 | 189.78 | 43.40 | 148.40 | 144.04 | 156.69 | 133.05 | 137.04 | 141.12 | 151.02 | 130.92 | 106.28 | 78.01 | 74.89 | 103.14 | 85.37 |
The cash conversion cycle of SolarEdge Technologies Inc has shown fluctuations over the past few quarters. The cycle measures the time it takes for a company to convert its investment in inventory into cash received from sales.
From December 2019 to June 2020, the cash conversion cycle ranged between 74.89 days to 106.28 days, showing relatively stable performance. However, by December 2020, it decreased significantly to 130.92 days, indicating a longer period to convert inventory into cash.
From March to September 2021, the cycle continued to increase, reaching 207.01 days in June 2021, which was the highest point in the provided data. This suggests that the company faced challenges in efficiently managing its inventory and receivables during this period.
Subsequently, SolarEdge Technologies Inc managed to improve its cash conversion cycle performance, with a significant drop to 43.40 days in December 2021. The company continued to maintain a shorter cycle duration over the next few quarters, indicating improved efficiency in converting its working capital into cash.
In the most recent data available, the company's cash conversion cycle increased to 362.10 days in June 2024. This suggests a potential slowdown in the collection of receivables or a buildup of inventory, which may require further analysis to understand the underlying reasons for this change.
Overall, while the company has experienced fluctuations in its cash conversion cycle, it has demonstrated the ability to adapt and improve its working capital management practices to enhance operational efficiency. Monitoring this metric over time can provide insights into the company's liquidity and operational performance.