SolarEdge Technologies Inc (SEDG)

Quick ratio

		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	US$ in thousands	274,611	303,904	259,498	214,229	338,468	551,122	557,744	727,849	783,112	678,329	745,534	1,002,770	530,089	526,588	524,112	685,157	827,146	1,048,110	428,372	324,072
Short-term investments	US$ in thousands	311,279	374,869	430,333	466,407	521,570	477,275	493,176	410,820	241,117	202,598	150,259	158,557	167,728	145,459	145,686	139,079	143,687	110,585	113,032	95,143
Receivables	US$ in thousands	0	32,297	82,297	61,480	55,418	8,125	1,291,630	1,116,780	0	785,325	669,100	676,820	527,380	416,244	343,652	271,713	275,323	183,141	181,700	235,673
Total current liabilities	US$ in thousands	1,041,080	903,812	566,824	658,890	893,231	876,651	897,729	900,042	889,717	694,480	612,174	568,741	525,181	405,507	399,585	397,726	436,099	382,537	405,065	389,681
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

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, also known as the acid-test ratio, provides insight into a company's ability to meet its short-term obligations with its most liquid assets. A higher quick ratio generally indicates a stronger liquidity position.

Analyzing the quick ratio of SolarEdge Technologies Inc over the past few years, we can observe fluctuating trends:

- From March 31, 2020, to September 30, 2020, the quick ratio increased steadily from 1.68 to 3.51, indicating a significant improvement in the company's ability to cover its short-term liabilities with its liquid assets.

- Subsequently, from December 31, 2020, to June 30, 2021, the quick ratio remained relatively high, ranging between 2.54 and 2.86, suggesting that the company continued to maintain a strong liquidity position.

- However, from September 30, 2021, to December 31, 2021, there was a slight decline in the quick ratio to 2.33, although it remained at a reasonable level.

- The quick ratio experienced fluctuations in the following periods, ranging from 1.15 to 3.23, indicating some variability in the company's ability to quickly cover its short-term obligations with its liquid assets.

- Notably, by December 31, 2024, the quick ratio dropped to 0.56, which could be a cause for concern as it suggests a potential liquidity strain for the company in meeting its short-term obligations with its current liquid assets.

Overall, based on the historical quick ratio data of SolarEdge Technologies Inc, it is advised to closely monitor the trend and ensure that the company maintains a healthy quick ratio to withstand any potential liquidity challenges in the future.