SolarEdge Technologies Inc (SEDG)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Quick ratio | 0.56 | 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 |
| Cash ratio | 0.56 | 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 |
SolarEdge Technologies Inc has shown a consistently strong current ratio over the years, indicating a healthy level of liquidity to cover short-term obligations. The current ratio has fluctuated between 1.95 and 5.10, with the latest reported ratio being 1.95 as of December 31, 2024.
The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has also displayed stability over time. The quick ratio has ranged from 0.56 to 3.51, with the most recent ratio recorded at 0.56 as of December 31, 2024.
The cash ratio, which focuses solely on the most liquid assets like cash and cash equivalents, has generally been above 1 for SolarEdge Technologies Inc, indicating a sufficient cash position to cover immediate debt obligations. The cash ratio has varied between 0.56 and 3.03, with the most recent ratio reported at 0.56 as of December 31, 2024.
Overall, SolarEdge Technologies Inc has exhibited strong liquidity positions throughout the years, although there have been slight decreases in liquidity ratios towards the end of the reporting period in 2024. It is important for the company to monitor these ratios closely to ensure they maintain adequate liquidity levels to meet their financial obligations.
See also:
SolarEdge Technologies Inc Liquidity Ratios (Quarterly Data)
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 113.36 | 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 |
The cash conversion cycle of SolarEdge Technologies Inc, a measure of how long it takes for the company to convert its investments in inventory and other resources into cash inflows from sales, has exhibited fluctuations over the periods analyzed.
From March 31, 2020, to December 31, 2022, the company managed to maintain its cash conversion cycle within a relatively stable range, reflecting effective working capital management. However, there was a significant spike in the cycle to 280.46 days by March 31, 2024, indicating potential inefficiencies in managing cash flows and operating cycles during that period.
The company then made a drastic improvement in managing its cash conversion cycle by reducing it significantly to 113.36 days by December 31, 2024. This could be attributed to better inventory management, improved accounts receivable collection practices, or increased sales efficiency during that particular quarter.
Overall, close monitoring and timely adjustments to the cash conversion cycle can help SolarEdge Technologies Inc optimize its working capital management and enhance overall financial performance in the long run.