SolarEdge Technologies Inc (SEDG)

Quick ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash	US$ in thousands	274,611	338,468	783,112	530,089	827,146
Short-term investments	US$ in thousands	311,279	521,570	241,117	167,728	143,687
Receivables	US$ in thousands	0	55,418	0	527,380	275,323
Total current liabilities	US$ in thousands	1,041,080	893,231	889,717	525,181	436,099
Quick ratio		0.56	1.02	1.15	2.33	2.86

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($274,611K + $311,279K + $0K) ÷ $1,041,080K
= 0.56

The quick ratio of SolarEdge Technologies Inc has shown a declining trend over the years, indicating a potential weakening liquidity position. As of December 31, 2020, the quick ratio was a robust 2.86, suggesting the company had ample liquid assets to cover its current liabilities. However, by December 31, 2024, the quick ratio had decreased to 0.56, falling below the ideal threshold of 1. This downward trend raises concerns about the company's ability to meet its short-term obligations using only its most liquid assets. It may indicate a need for the company to improve its cash management practices or increase its current assets relative to current liabilities to enhance its liquidity position and financial stability.