SolarEdge Technologies Inc (SEDG)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	US$ in thousands	338,468	783,112	530,089	827,146	223,901
Short-term investments	US$ in thousands	521,570	241,117	167,728	143,687	91,845
Receivables	US$ in thousands	55,418	0	527,380	275,323	382,300
Total current liabilities	US$ in thousands	893,231	889,717	525,181	436,099	436,714
Quick ratio		1.02	1.15	2.33	2.86	1.60

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($338,468K + $521,570K + $55,418K) ÷ $893,231K
= 1.02

Solaredge Technologies Inc's quick ratio has shown fluctuations over the past five years. As of December 31, 2023, the quick ratio stands at 2.08, indicating that the company has $2.08 in liquid assets available to cover each dollar of current liabilities.

Comparing this to previous years, the quick ratio has gradually declined from 2.44 in 2022 to 2.53 in 2021 and further down to 3.18 in 2020. This decline suggests a potential decrease in the company's ability to meet its short-term obligations with its most liquid assets.

However, it is worth noting that the current ratio increased significantly in 2020, indicating a temporary improvement in the company's short-term liquidity position. The sharp decrease in the quick ratio in 2023 may raise some concerns about the company's ability to fulfill its current liabilities without relying on inventory.

Overall, Solaredge Technologies Inc's quick ratio trend indicates fluctuations in its short-term liquidity position, and stakeholders should monitor this metric closely to assess the company's financial health and ability to meet its short-term obligations in the future.