SolarEdge Technologies Inc (SEDG)
Liquidity ratios
| 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 | Dec 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 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 | 2.14 |
| Quick ratio | 0.79 | 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 |
| Cash ratio | 0.75 | 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 |
SolarEdge Technologies Inc's liquidity ratios have shown fluctuations over the past few quarters. The current ratio, reflecting the company's ability to cover its short-term obligations with current assets, has ranged from 2.34 to 5.10, indicating strong short-term liquidity overall. However, there have been some variations in the quick ratio, a more conservative measure of liquidity that excludes inventory from current assets. The quick ratio has fluctuated from 0.79 to 3.51, with a recent downward trend.
The cash ratio, which measures the company's ability to cover its current liabilities with its cash and cash equivalents, has varied from 0.72 to 3.03. This ratio has also shown some volatility, indicating fluctuations in the company's cash position relative to its short-term obligations.
Overall, while SolarEdge Technologies Inc has generally maintained healthy liquidity levels, investors and analysts should pay attention to the recent downward trend in the quick ratio and monitor the company's cash position closely to ensure it can meet its short-term obligations effectively.
See also:
SolarEdge Technologies Inc Liquidity Ratios (Quarterly Data)
Additional liquidity measure
| 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 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 150.64 | 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 |
The cash conversion cycle of SolarEdge Technologies Inc has shown fluctuating trends over the past years. The cycle represents the time it takes for the company to convert its inventory into sales and then into cash.
In September 2024, the cash conversion cycle was 150.64 days, which indicates that it took the company approximately this amount of time to convert its inventory into cash. This figure was significantly lower compared to the previous quarter's 362.10 days, suggesting an improvement in the efficiency of inventory management and cash flow generation.
Looking back further, the cycle was 280.46 days in March 2024, showing an extended period for inventory conversion compared to September 2024. This increase could be due to various factors such as changes in sales patterns, production delays, or inventory management issues.
The cash conversion cycle was at its lowest point in December 2022 with 43.40 days, indicating efficient management of cash flows, inventory, and accounts receivable. This sharp decline in the cycle may have been influenced by improved inventory turnover and streamlined operational processes during that period.
Overall, monitoring the cash conversion cycle provides insights into SolarEdge Technologies Inc's operational efficiency, inventory management practices, and liquidity position. It is essential for the company to consistently optimize this cycle to enhance cash flow generation and sustainable growth in the long term.